Selling a rig your upside down on

jfkmk wrote:
With the exception of a mortgage and possibly a car to get to work, there's nothing worth getting into debt for, especially a toy.

For those with lots of cash on hand thats easy to say. For us, we wouldn't be enjoying RV'ing if we had to pay cash for our rig. It's something we really enjoy so the loan is worth every penny. Interest is cheap and I can write it off on taxes.

bpounds wrote:
I hope all of you nose-in-the-air people stay out of the rain. You'll drown!

Fact is, things happen and people get over their heads. For an endless list of possible reasons. Either take the hit and get out from under the obligation, or if you can't do that, let the bank take their property back and deal with the hit to your credit.

People are responsible for their own decisions, but in my opinion the 10 and even 15 years loans offered for RV's is a terrible idea. For both the consumer and the banks. There is no way you ever get right side up on those loans, unless you start with a huge down payment, in which case you probably wouldn't choose such a long term anyway. The only winner in those long term loans is the RV dealer, who sells a rig to a family that really can't afford it.

100% agree, we've always done less than 4 year terms with 50-60% down in trade/cash. That way you're never upside down and have options if something happens.
Never understood people getting themselves into 10+ year loans on such terrible depreciating assets.

wing_zealot wrote:

bpounds wrote:
I hope all of you nose-in-the-air people stay out of the rain. You'll drown!

Fact is, things happen and people get over their heads. For an endless list of possible reasons. Either take the hit and get out from under the obligation, or if you can't do that, let the bank take their property back and deal with the hit to your credit.

People are responsible for their own decisions, but in my opinion the 10 and even 15 years loans offered for RV's is a terrible idea. For both the consumer and the banks. There is no way you ever get right side up on those loans, unless you start with a huge down payment, in which case you probably wouldn't choose such a long term anyway. The only winner in those long term loans is the RV dealer, who sells a rig to a family that really can't afford it.

That's not always true. I have a 12 year loan and I can afford it. That fact that it may be upside down means nothing, I can pay it off tomorrow if I choose to. The fact is, I have a 4.49% loan on it while the very same money I would be paying it off with is earning 7.48% average annualized return. I bought a pop-up about 20 years ago and took the money out of my account and paid cash. Later I realized that was a losing proposition. I could have taken a loan out and kept my money invested and I would have been way-way ahead (dot com bubble). Now I weigh my options a lot more carefully. I wouldn't be so quick to call a 10 or 15 year loan a loser. Maybe a loser for you but not necessarily so for others. JMOYMV

I can see both sides on this one. Both points totally valid. My wife and I financed our last car at 0% for 7 years. We could have paid cash but why would we??? We kept our money working as wing zeolet's point states. But, I bet there were lots of folks who went out and financed more car than they should have and if a job loss or some such occurs......upside down as bpounds suggests.

Yep, you Guys both make very good points. Depends on many personal factors.

The ONLY way to buy is either 48 or 60 months loan thru a credit union! No other option should be considered. Yes, we purchased a 2012 Keystone Cougar also and really like it.

bpounds wrote:
I hope all of you nose-in-the-air people stay out of the rain. You'll drown!

Fact is, things happen and people get over their heads. For an endless list of possible reasons. Either take the hit and get out from under the obligation, or if you can't do that, let the bank take their property back and deal with the hit to your credit.

People are responsible for their own decisions, but in my opinion the 10 and even 15 years loans offered for RV's is a terrible idea. For both the consumer and the banks. There is no way you ever get right side up on those loans, unless you start with a huge down payment, in which case you probably wouldn't choose such a long term anyway. The only winner in those long term loans is the RV dealer, who sells a rig to a family that really can't afford it.

I agree 100% !!!

B.O.

I hope all of you nose-in-the-air people stay out of the rain. You'll drown!

Fact is, things happen and people get over their heads. For an endless list of possible reasons. Either take the hit and get out from under the obligation, or if you can't do that, let the bank take their property back and deal with the hit to your credit.

People are responsible for their own decisions, but in my opinion the 10 and even 15 years loans offered for RV's is a terrible idea. For both the consumer and the banks. There is no way you ever get right side up on those loans, unless you start with a huge down payment, in which case you probably wouldn't choose such a long term anyway. The only winner in those long term loans is the RV dealer, who sells a rig to a family that really can't afford it.

Given some of the crazy things that people have given money to in crowdfunding efforts, I'm surprised nobody suggested a GoFundMe campaign.

Getting someone to take over the payments is generally not an option. Most lenders will call the load as due and will not accept a new borrower. Check with your lender first and also make sure the loan is totally out of your name.

Ken

GoldWingRyder wrote:
You might advertise it as a take over payments!?

If you do this unless you switch the loan over to the new buyer you are still liable. The new buyer makes one or two payments, trashes the trailer or runs off with it or both. Unless you switch it over you are still on the hook. I doubt that anybody would do this..

B.O.

Some of you people crack me up. Anyone have any investments in bonds? I'd be willing to bet that vast majority of people that are espousing "saving" to make their purchases have bonds in one form or another (all though there's a good chance they probably don't realize that). Guess what - bonds are responsible people, responsibly using credit. It's a win - win. There is nothing wrong with responsible use of credit, if you don't believe that, you shouldn't believe in investing in bonds.

Anyone 100% invested in stocks? If you are you shouldn't be offering financial advice (you're not very good at it). And if all of your money is in a savings account, or cd's, then you're the biggest loser!