Selling a rig your upside down on

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.