Journey with Confidence RV GPS App RV Trip Planner RV LIFE Campground Reviews RV Maintenance Take a Speed Test Free 7 Day Trial ×
 
 


Reply
 
Thread Tools Display Modes
 
Old 06-04-2018, 04:29 PM   #21
Platinum Member
 
goreds2's Avatar
 
Join Date: Oct 2010
Location: Oh - H - Eye - OH
Posts: 180
Default Did you finance or pay cash for your Class B?

Please read my signature.
__________________
I have a 1989 Dodge XPLORER RV Class B - Purchased 10/15/10 IN CASH
Fiance' purchased a Class C (B+ ?) 2002 Dynamax Carri-go on 5/1/15 IN CASH
We've got the best of both worlds
goreds2 is offline   Reply With Quote
Old 06-04-2018, 04:40 PM   #22
Platinum Member
 
Join Date: Aug 2017
Location: CA
Posts: 1,325
Default Replaced your car with the RV

Quote:
Originally Posted by Leland View Post
It's hard to enjoy yourself when you're saddled up with payment(s). It takes the fun out of it
SO.. you use the RV daily??
Roadtrek Adventuous RS1 is offline   Reply With Quote
Old 06-06-2018, 07:59 PM   #23
New Member
 
Alain_M's Avatar
 
Join Date: Feb 2016
Location: Quebec
Posts: 5
Default

Putting on 20 years makes sense if your investments have a higher yield than the loan rate
__________________
Alain
Alain@Marchildon.net
Alain_M is offline   Reply With Quote
Old 06-06-2018, 08:06 PM   #24
Platinum Member
 
Join Date: May 2018
Location: California
Posts: 330
Default We Paid Cash

We were fortunate enough to be able to.
rvsprinterguy is offline   Reply With Quote
Old 06-06-2018, 09:35 PM   #25
Platinum Member
 
Join Date: Oct 2017
Location: Ontario
Posts: 449
Default

For things like this, if I can't pay cash, I don't buy.

I watched an interesting tv documentary about buying cars here in Canada - likely teh sme in the US. Some of the tactics are barely legal.

Seems the salesmen only push what the biweekly payments will be and only talk purchase price if forced to do so - biweekly payments sound pretty good - if based on an 8 or 9 year loan as they now often are!! People - especially young folks who get caught up in this - are sucked into buying a much more expensive vehicle then they otherwise would.

They also get talked into the fact that they can always pay off the loan when they want to trade in on something newer - that then brings up the subject of "Negative equity" which is a situation existing whereby the car they have is worth less than the outstanding loan balance!

The more weasely car dealers will then build that negative equity into the loan for the new car in the sales agreement by tacking it onto the purchase price using some obtuse language like "added retail amount" or some such - the buyer is then even deeper in the hole!

Guess i'm a cheap S.O.B., but I feel a whole lot more comfortable with my approach - can't pay / don't buy!

I've had a whole lot of vehicles in my lifetime so far, and only very recently have started buying new ones! Couldn't afford the before!

Brian.
<<B-Guy>> is offline   Reply With Quote
Old 06-07-2018, 12:21 AM   #26
Site Team
 
avanti's Avatar
 
Join Date: Jul 2013
Posts: 5,321
Default

Here's my other "credit" aphorism:

There are two kind of people: Cash People and Credit People. There are two differences between them: (1) It takes several years longer for a cash person to achieve a given level of consumption; and (2) Credit people pay 17% more for stuff.

It is not a moral choice, it is a pragmatic one.
__________________
Now: 2022 Fully-custom buildout (Ford Transit EcoBoost AWD)
Formerly: 2005 Airstream Interstate (Sprinter 2500 T1N)
2014 Great West Vans Legend SE (Sprinter 3500 NCV3 I4)
avanti is online now   Reply With Quote
Old 06-07-2018, 01:28 AM   #27
New Member
 
Join Date: Oct 2016
Location: Virginia
Posts: 10
Default

Finance for twenty, pay off in ten. Nothing stopping you but lets you preserve options just in case...
mls1919 is offline   Reply With Quote
Old 06-07-2018, 01:32 AM   #28
Silver Member
 
Join Date: Jan 2015
Posts: 51
Default

Let's see, I can buy now and pay 5% interest for 10 - 15 years and use and enjoy the thing. On the other hand I can try to save and watch the price of the rv increase yearly at a higher rate than the interest I would be paying.
__________________
2019 Crossfit 22CEB
oilman is offline   Reply With Quote
Old 06-07-2018, 03:00 AM   #29
Platinum Member
 
GeorgeRa's Avatar
 
Join Date: Feb 2016
Location: Portland, Oregon
Posts: 3,141
Default

We tend to analyze large purchases from 2 points of views: investment to our well-being and financial investment, results are not always black or white.

For years we use the same financial advisor helping us to decide and sometimes paying cash are financially advantageous and sometime loans are financially better options.

Personal investment for our mental well-being varies to, so our decision is drawn from these 2 perspectives, sometime using an analysis matrix to facilitate discussion.

One form of finances we never did nor will do is leasing a vehicle, just against my grain.
GeorgeRa is offline   Reply With Quote
Old 06-07-2018, 04:29 AM   #30
Platinum Member
 
Join Date: Oct 2016
Location: Ohio
Posts: 100
Default

Quote:
Originally Posted by Roadtrek Adventuous RS1 View Post
WOW....the sales folks make this sound so easy... just finance it over 20 years.... trouble is..I realized that it would cost another $60,000 in interest charges just for that!

So, after 7 months I found a way to "retire" the loan...

Still, I could not do that again..one time thing..

Is it worth financing an RV for 20 years..? Just because you can doesn't mean you should?

And, these things are really toys... depreciating assets like cars...

Unless something changes.. I'll probably keep my used RV until I decide not to have one!
These things are so insanely expensive to purchase and maintain...

I'm lucky that I like my RV... turning it around for another one is not a good idea.. especially if you just acquired it...
Despite the fact that RV loan interest is tax deductible, that will not even come close to compensating for the depreciation that will occur over 20 years of ownership, or even far less than that. I'm not saying financing never makes sense. A short term loan (up to about 7 years) could make sense as long as it allows you to avoid a negative equity situation.

Personally, I plan to pay cash for my class B, which is the reason I don't own one yet...I'm still saving up. I'm very much anti debt, so it's a personal thing with me. I also realize that waiting years before being able to make my purchase is a downside, but I won't have significant time to travel anyway until I retire, so I'm OK with waiting.

If you decide to finance, just make sure you don't let yourself get upside down (negative equity) in the loan because then you're stuck, and the only way to do that is to keep the loan term below 7 years.

Good luck!
dhectorg is offline   Reply With Quote
Old 06-07-2018, 04:40 AM   #31
Platinum Member
 
Join Date: Oct 2016
Location: Ohio
Posts: 100
Default

Quote:
Originally Posted by Davydd View Post
Has anyone kept a Class B for 20 years?

I've paid cash for my three Class Bs and traded them in at 65,000 and 61,000 miles and already have 63,000 miles on my current one in 3-1/2 years. At my rate I would put well over 400,000 miles on one in 20 years and I doubt it would last that long. And I certainly wouldn't want to own something that was stored in a garage unused for several years. But I may not live another 20 years and it is a depreciating asset unlike a house.
I have to be honest, that sounds crazy to me. You have to be losing tons of money trading like that and maybe you have it to lose and that's OK too, I guess. However, I plan to buy just ONE class B that I will travel in for the rest of my life...hopefully for 25 years. I realize I'm probably in the minority on this, but I tend to keep my vehicles for a long time and I take excellent care of them so they last. I have no problem owning one RV for decades, it's the only way to get your money's worth out of it, considering how much they cost these days. I'm hoping to go with Advanced RV, which will cost well over $200k, so it better last! I strongly believe it's all about doing excellent preventive maintenance.
dhectorg is offline   Reply With Quote
Old 06-07-2018, 06:17 AM   #32
Platinum Member
 
Join Date: Aug 2017
Location: CA
Posts: 1,325
Default I agree with you 100 percent.....it is crazy...

Quote:
Originally Posted by dhectorg View Post
I have to be honest, that sounds crazy to me. You have to be losing tons of money trading like that and maybe you have it to lose and that's OK too, I guess. However, I plan to buy just ONE class B that I will travel in for the rest of my life...hopefully for 25 years. I realize I'm probably in the minority on this, but I tend to keep my vehicles for a long time and I take excellent care of them so they last. I have no problem owning one RV for decades, it's the only way to get your money's worth out of it, considering how much they cost these days. I'm hoping to go with Advanced RV, which will cost well over $200k, so it better last! I strongly believe it's all about doing excellent preventive maintenance.
You are absolutely right... keeping it for a long time and maintaining it is the best way for saving money... I kept my 1995 Honda Accord until I sold it in 2014...ran perfectly..
I sold it because it was too low to the ground to tow my teardrop trailer.... and my Subaru Outback Limited has a lot more towing capacity...plus ground clearance..

Look, I understand where some people are...you can't take it with you and if I were closer to 80 and wanted everything brand new just because I could ... maybe I might have a different view...

But, if you want to have fun and still have money left over for emergencies... there's no reason aside from bragging rights about having the "best"....

Yes, there are plenty of people who keep their cars and RVs for an extended period of time.. trading anything too soon is NOT a wise financial move....in my opinion.
Roadtrek Adventuous RS1 is offline   Reply With Quote
Old 06-07-2018, 06:59 AM   #33
New Member
 
Join Date: May 2017
Location: az
Posts: 2
Default what Cruising said

Quote:
Originally Posted by cruising7388 View Post
Personally, my m/o truncates this advice to: never borrow money, period, but that said:

Maybe. Maybe not. It depends on the cost of borrowing and what you do with the resources conserved by borrowing plus the potential tax deduction advantage of an RV qualifying for a second home. The inputs to the equation and the resultant financial bottom line will be different for everybody.
If you make payments over 20 years, you don't have a large payment going out monthly, you have your second home write-off to help with the interest paid, and you are leaving the bulk of your money working for you as an investment to bring a little higher return than the interest rate of the loan vs. just having it gone and sunk into the vehicle. And, yes, there are cons to this approach, too. That's why I like the "Maybe. Maybe not." answer!
baritone is offline   Reply With Quote
Old 06-07-2018, 10:08 AM   #34
Platinum Member
 
Join Date: Oct 2016
Location: Ohio
Posts: 100
Default

Quote:
Originally Posted by baritone View Post
If you make payments over 20 years, you don't have a large payment going out monthly, you have your second home write-off to help with the interest paid, and you are leaving the bulk of your money working for you as an investment to bring a little higher return than the interest rate of the loan vs. just having it gone and sunk into the vehicle. And, yes, there are cons to this approach, too. That's why I like the "Maybe. Maybe not." answer!
In my opinion, there are only two cons to paying cash. 1) Losing the investment earning potential of that cash. However, with interest rates on RV loans hovering at 5% and climbing (with excellent credit), it's unlikely you'll consistently earn enough investment income (after taxes and expenses) to outrun the cost of the loan. 2) If you're not cash rich, having to wait years to save up enough to make your purchase can be difficult, especially if you're ready to hit the road now.

But if you plan to keep the RV for the long term, there's no reason to worry about the 'sunk' cost of a cash purchase, since it's a one time expense and will negate the need to make payments, leaving you with more cash in your monthly budget.

If you can afford to pay cash or don't mind waiting to save up until you can, cash is the best way to buy, in my opinion. I see no significant benefit, other than instant gratification, to giving $10s of thousands of hard earned dollars to a bank.
dhectorg is offline   Reply With Quote
Old 06-07-2018, 10:27 AM   #35
Platinum Member
 
ponti33602's Avatar
 
Join Date: Aug 2015
Location: Florida
Posts: 249
Default

Quote:
Originally Posted by dhectorg View Post
I have to be honest, that sounds crazy to me. You have to be losing tons of money trading like that and maybe you have it to lose and that's OK too, I guess. However, I plan to buy just ONE class B that I will travel in for the rest of my life...hopefully for 25 years. I realize I'm probably in the minority on this, but I tend to keep my vehicles for a long time and I take excellent care of them so they last. I have no problem owning one RV for decades, it's the only way to get your money's worth out of it, considering how much they cost these days. I'm hoping to go with Advanced RV, which will cost well over $200k, so it better last! I strongly believe it's all about doing excellent preventive maintenance.
Might want to add a 1 to that starting digit. Many of their used ones are close to $300K.
__________________
Regards,
Bob

2017 RT Agile SS
ponti33602 is offline   Reply With Quote
Old 06-07-2018, 12:22 PM   #36
BBQ
Platinum Member
 
Join Date: May 2016
Location: East
Posts: 2,483
Default

.

Everything is relative

Everything depends on context


If you are young and a dreamer, you buy a beat up VW.

If you are a middle-aged reformed Gen-X, you buy the $150k RV.

If you were a hippie and have achieved everything that needs to be achieved in life,
you can do whatever you want. No explanation (or financing) is required.
__________________
BBQ is offline   Reply With Quote
Old 06-07-2018, 02:01 PM   #37
Platinum Member
 
Davydd's Avatar
 
Join Date: Aug 2007
Location: Minnesota
Posts: 5,964
Default

Quote:
Originally Posted by dhectorg View Post
I have to be honest, that sounds crazy to me. You have to be losing tons of money trading like that and maybe you have it to lose and that's OK too, I guess. However, I plan to buy just ONE class B that I will travel in for the rest of my life...hopefully for 25 years. I realize I'm probably in the minority on this, but I tend to keep my vehicles for a long time and I take excellent care of them so they last. I have no problem owning one RV for decades, it's the only way to get your money's worth out of it, considering how much they cost these days. I'm hoping to go with Advanced RV, which will cost well over $200k, so it better last! I strongly believe it's all about doing excellent preventive maintenance.
So far in our first Class B, I paid $63,000 for it and traded it in for $55,000 after 5 years and 61,000 miles of use. I then bought a Class B for $90,000 and sold it after 3 years and 65,000 miles of use for $70,000. I probably sold it for less than I anticipated because I was looking at winter in Minnesota in November and was willing to shed it. Hindsight leaves me to belief I made the right decision. So I had about $28,000 depreciation over 8 years and and 126,000 miles of use. That's not crazy. Do the math if I had financed them. I drove both maintenance and worry free, and I got a lot of use from them and improved my travel with upgrading from experience of what I needed or wanted from a Class B. When I bought my first Class B lithium ion batteries were practically unknown and AGMs weren't offered either. That is just one evolution in use I've gained.

It's unknown how I will do on my current Class B. I haven't explored it yet. But compromise is not in my vocabulary but challenge is.
__________________
Davydd
2021 Advanced RV 144 custom Sprinter
2015 Advanced RV Extended body Sprinter
2011 Great West Van Legend Sprinter
2005 Pleasure-way Plateau TS Sprinter
Davydd is offline   Reply With Quote
Old 06-08-2018, 01:12 PM   #38
Platinum Member
 
Join Date: Oct 2016
Location: Ohio
Posts: 100
Default

Quote:
Originally Posted by ponti33602 View Post
Might want to add a 1 to that starting digit. Many of their used ones are close to $300K.
I am aware, but those are loaded with every option they offer. I only plan to option useful equipment, not aesthetics. I also don't want the 24 footer, which is what their used ones are. Their conversions start at about $225k. I expect to be in the mid $200s.
dhectorg is offline   Reply With Quote
Old 06-08-2018, 03:03 PM   #39
Platinum Member
 
Davydd's Avatar
 
Join Date: Aug 2007
Location: Minnesota
Posts: 5,964
Default

Quote:
Originally Posted by dhectorg View Post
I am aware, but those are loaded with every option they offer. I only plan to option useful equipment, not aesthetics. I also don't want the 24 footer, which is what their used ones are. Their conversions start at about $225k. I expect to be in the mid $200s.
People seemingly take glee in only reporting the highest price while at the same time only quoting the lowest price without options of their favored RV.
__________________
Davydd
2021 Advanced RV 144 custom Sprinter
2015 Advanced RV Extended body Sprinter
2011 Great West Van Legend Sprinter
2005 Pleasure-way Plateau TS Sprinter
Davydd is offline   Reply With Quote
Old 06-08-2018, 03:46 PM   #40
Platinum Member
 
ponti33602's Avatar
 
Join Date: Aug 2015
Location: Florida
Posts: 249
Default

Quote:
Originally Posted by Davydd View Post
People seemingly take glee in only reporting the highest price while at the same time only quoting the lowest price without options of their favored RV.


Hmm. Not sure if glee. I spoke to Mike before on a build. Not too fancy on a 144”. He hadn’t done one yet. I was told upper $200’s to plan on. He has many used fancy ones above $250.


Sent from my iPhone using Tapatalk
__________________
Regards,
Bob

2017 RT Agile SS
ponti33602 is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


» Featured Campgrounds

Reviews provided by

Powered by vBadvanced CMPS v3.2.3

All times are GMT. The time now is 05:59 PM.


Powered by vBulletin® Version 3.8.8 Beta 4
Copyright ©2000 - 2024, vBulletin Solutions, Inc.