Cash or Credit?

[Capt Steve]

I was preparing to pull the trigger on a brand new Nexus when I found the exact same coach with just 6,205 miles on it at a local dealer for $47K {a custom built new model would have been $63K} and this allowed us to skip two trips to Elkhart from Tucson. This market is so crazy that we were offered $41,000 for it a couple of months ago but no way we would part with it.

Got a good deal trading in our TT {they matched our consignment price} and financed the coach for 15 years. Paid it off in 6 which gave our already high credit score and nice bump.

After 63,000 trouble free miles over the last 8.5 years we have never looked back... definitely happy campers!

[Isaac-1]

Looking at the results I am amazed so few financed and bought from private sellers, so far it appears to just be me and one one other responder.

[Dutch Star Don]

Originally Posted by Isaac-1

Looking at the results I am amazed so few financed and bought from private sellers, so far it appears to just be me and one one other responder.

The poll looks good, but really doesn't cover how people buy. First off, from behind a keyboard, everyone pays cash, yet almost every new RV in a campground has a loan against it.

Second, many sell their home and buy an RV for cash, that's not really a true example of how they paid for the RV, they don't have a home anymore.

Third, a young couple with kids and a house are rarely going to have the cash to buy an RV, so they get a loan, while someone older and reaping the benefits of saving all their life, and investments maturing can pay cash, or at least borrow a small amount and then pay it off in a few years.

Fourth, there are people who buy a $10K RV for cash and they're being compared to a person spending $300K for an RV. The person paying $300K, could probably buy three or four $10K RV's without blinking an eye. There are also a few people who could buy two or three $300K RV's without blinking an eye. It's all relevant, which this poll doesn't take into consideration.

We've financed every car, RV, and boat over our lifetime, but in the past ten years, in retirement, we finance something and then pay it off within a year or so, it's just more comfortable that way and we usually get a better deal financing and at a really low interest.

So....it's hard to get a really good feel how people pay/finance RV's in a simple poll.

[Isaac-1]

I agree there is a lack of information out there, but I was in particular referring to the private party sales being financed vs the dealer sales being financed, which should someone level that playing field . At the time I write this 5 times as many people say they bought from dealers and financed as bought from private parties, they the ratio for dealer / private party cash sales is only a 3 to 1 ratio.

[Sparky1]

i did a partial "down" got address for pay principal only payment plus note payment paid it off in 13 months. saved a fortune.

[buddy110]

I'm a big believer in COD. I hate debt, but for me a purchase of this size requires using OPM.

[Sugaree]

Purchased our 2019 DS newly used, only 9K miles, in 12/2019. Purchased from dealer and paid cash for half the cost and financed the other half at a rate that was too good to turn down. The return on that money is significantly higher than the interest rate.

[mikebreeze]

Bought used from Cruise America, financed it through a Bank for 10 years, paid it off in 3 years.

[dtucker300]

Originally Posted by arcaguy

Did you pay cash for your rig? Did you buy it from a dealer or a private party? Inquiring minds want to know.

Paid cash for my first. A 1994 Class C 29'.
Paid cash for my second from a private party. A 2003 32' Class A with slideouts.

I'll probably pay cash for the next RV I buy.

Even with a 3-4% low-interest loan for an RV, the rate is far too high and too long in some cases, which ends up adding thousands of dollars in interest. I've seen many who are underwater in the equity-debt ratio several years down the road. Not to mention the high insurance premiums because they keep a very low deductible.

[garyb1st]

Originally Posted by Mr_D

I make more on my annuity than the interest I pay. It doesn't make sense to take money out of my annuity that pays 7% to pay off a 5% loan.

If 7% is still available, I'm ready to jump in. However, I suspect the annuity was purchased quite a few years ago.

[dtucker300]

Originally Posted by Mr_D

I make more on my annuity than the interest I pay. It doesn't make sense to take money out of my annuity that pays 7% to pay off a 5% loan.

If you can get a low-interest loan it may be worth it to pay installments over time since inflation was 7% this year and doesn't seem to be abating any in the near future. Thanks, Brandon!

[904Dave]

We purchased from a dealer and paid cash. It made more sense for us because we had cash laying around and other investments that were out performing the loan market.

[BikesAndGuns]

Originally Posted by arcaguy

Did you pay cash for your rig? Did you buy it from a dealer or a private party? Inquiring minds want to know.

Like many owners, we won't be able to participate in this poll. We paid mostly cash to the dealer for our RV, but financed $10,000 through our credit union. Any valid poll will include an "Other" category, ideally with a field to explain.

[NeverGrowUp]

Whenever you can finance your RV for less than you are earning on your money, do it. Don't forget to factor in tax consequences. 2nd home interest deductible