Financing a motorhome.
My old motorhome needs to be replaced. It's 26 years old. Everything works but, I feel like it has major repairs in the near future that will cost more than I'm willing to pour into a unit that old....
Forum Discussion
Depending on the size and age of the RV many places that offer financing will offer terms of 15, 20 or even 25 years similar to a home mortgage. The problem is that RVs, unlike homes, depreciate in value with age and after 10 years they're close to zero value as far as most financial institutions are concerned. This means that if you finance for more than 10 years then most likely you can find yourself "under water" on the loan at some point. That's not a big concern if you plan to keep it, but if you reach a point where you want to get out of RVing for any reason, having an underwater loan can be a real shocker - you owe more than it's worth. I'd suggest using a 10 year finance rule when looking at an RV and if you can handle the financing at that level then it's a doable deal, otherwise keep looking.
