Selling a rig your upside down on

Like Rusty, you need to live within your means. Starting out, use credit very cautiously and leave yourself dome room. Buy a smaller house, a used car, and a used RV . Save some money and in the later years you can afford to get something new and shiny with the savings if you choose.

The OP needs to just keep the RV he has, take care of it and accelerate the payments when he can to get the loan paid down to the point he is not upside-down.

Taking out a personal loan for the gap, is a loosing proposition. It will have a much higher interest rate. He would be better off taking that money that would go toward the personal loan and accelerating the payments on the current RV.

Ken

Sprink-Fitter wrote:
Just because you can save $100,000 to buy a RV with Cas does not mean everyone can, some it would take a lifetime, so with your thinking, it might take 50 years to save for it, but now they can get a RV. There is nothing wrong with payments as long as you are living within your income situation.

I'm not going to debate with you how you choose to live your life - that's none of my business. I'm just going to say that the reason we have the cash to buy what we need and some of what we want is that we took the money we would have been paying out in payments and interest and saved/invested that money. Then, when we made a purchase, the cash was there to fund it. The reason we can buy a $100K RV (your number) with cash is that we settled for the $2500 refurbished 1978 Jayco Cardinal pop-up (our first RV purchased in 1992 after 23 years of tenting.) That's all we could afford without taking out a loan.

I realize that it's a lifestyle change - I just shared our perspective and perhaps a bit of wisdom gained through life experiences of 67 years on this earth. If you don't agree or don't want to hear it, please feel free to ignore it.

All the best to you and yours,

Rusty

OutdoorPhotographer wrote:


I concur with folks who suggest trying to get a personal loan for the gap. It's not an ideal solution but obviously you're trying to find the best option. If you price it high, you will have to keep making payments while it depreciates even further.

Good luck!

Do you have the equity in your house, get a home equity loan and pay off the difference in the FW. Interest is still deductible that way.

RustyJC wrote:
Yep, unless you can find a sucker to take it off your hands for what you owe, there's no silver bullet for your situation. You're not alone, though - I enjoy scanning the RV ads every now and then, and there are a LOT of RVers who are apparently trying to sell for what they owe, not what their RV is worth in the market.

For what it's worth, since the early 1990s our modus operandi has been if we can't write a check for it, we don't buy it. Life for us is a lot less stressful living debt free. It's certainly something to consider working toward, IMHO.

Rusty

Just because you can save $100,000 to buy a RV with Cas does not mean everyone can, some it would take a lifetime, so with your thinking, it might take 50 years to save for it, but now they can get a RV. There is nothing wrong with payments as long as you are living within your income situation.

HI,

I would try making a extra $100 or $200 a month towards the loan, and help try to get ahead on the value of it. But if you are tired of paying $500 or whatever a month, you should plan on paying off the loan and sell it for whatever you can get for it. . .

Good luck,

Fred.

bob_nestor wrote:
It's a shame lenders, sellers, dealers, etc don't provide the customer with a chart showing depreciated value for each year of the loan along with loan balance remaining. That might make it easier for buyers to understand when they'll be underwater and for how long, but I'm sure they'll make their money on the deal .

Most will if you ask, and many do without asking. If not, its simple to do on a computer, and many of us learned to do it in high school math class. For those who can't, there are a lot of places on the internet that will calculate it for someone, and just about any finance officer at any bank can do it in their head. Its been a while, but I think there is a function in MS EXCEL that will do it in an instant.

kjnpuppy wrote:
Like many people, we are over our heads. We have a really good 2012 Keystone Cougar Xlite 29RES, that we owe $30,000 on. However, it retails for closer to $25,000. Trade value is considerably less. So what do we do?

I concur with folks who suggest trying to get a personal loan for the gap. It's not an ideal solution but obviously you're trying to find the best option. If you price it high, you will have to keep making payments while it depreciates even further.

Good luck!

It's a shame lenders, sellers, dealers, etc don't provide the customer with a chart showing depreciated value for each year of the loan along with loan balance remaining. That might make it easier for buyers to understand when they'll be underwater and for how long, but I'm sure they'll make their money on the deal so they probably don't care.

My rule of thumb for buying cars is no loan longer than 5 years and for RVs no loan longer than 10 years. The max payment that I'll consider is about 1/2 of what most would tell me I can afford. If it takes more loan than that then I figure the car or RV is out of my price range and I move on.

Anyway, for the OP you might check with RvSalvage and see if that's an option. You could also list the unit for sale with RvClearinghouse and see if maybe there's a buyer out there willing to pay what you need, but you might have to take a loss on the sale. One other option would be to put it up for auction with a reserve so it doesn't go for a price under your reserve. There's a mid-west auction on-line that specializes in recreational items including RVs. They are CrankyApe and they have offices in Texas although they are out of Minnesota.

It's great that folks can pay cash for a new vehicle. :)

I don't put anything on my credit card that I can't pay off at the end of the month, so that's my way of staying "debt free"..

I had to take a loan for my house, but that was 17 years ago and I only pay $900 month for it and that includes taxes and insurance.

The new F150 I got 18 months ago, I'm only going to pay about $2000 interest over 6 years... In that 6 years, I'm gonna enjoy a newer vehicle than the 17 year old F150 I traded in for it and probably would not be able to save the cash payment for it in the 6 year loan I took out. (but, in that time, how much more expensive is a brand new 2019 F150 gonna cost??)

But, I put a good size down payment on both my house and the new F150, so I was not upside down the next day...

If you buy something with little down, and take a loan on it, you are upside down the moment you sign the papers..

All the OP can do is sell it privately, and hope to get his principle amount or sell/trade it for what he gets and move on.. We don't know why the OP wants to get rid of a new RV that they owe more on than it's worth, but that's the way it is...

Good luck!

Mitch

laknox wrote:
Call Guido the Torch... :-)

Lyle

I'm sure? You are just trying to be funny but IMO it isn't.:E