Financing vs. buying older model?
In your opinion, is it better to finance a newer motorhome, or to pay cash for an older one (10 - 15 years old.) - or maybe something in between - like a heafty down payment on 6ish year old model. We...
Forum Discussion
For me, I came to my decision by looking at the next 7-10 years of ownership and how my finances would handle it.
Financing - you will have a set payment every month for X number of years. Do you have enough "spare income" to afford those payments plus the fuel, campsite fees, and so on? If you finance used, do you have enough to cover unexpected repairs in addition to the other expenses?
Paying cash - do you have enough to pay for the RV plus pay for any required repairs needed at the outset? Do you have enough "spare income" to cover unexpected repairs in the future?
For me, buying used with cash was the better way. I put in a lot of money over the first 3 years getting it back in topnotch shape, but I was able to spread out the work as money was available. Without a monthly payment, I was able to go out much more often and still saved money in the long run.
For someone else, financing makes more sense because they have a lot of "spare income" to cover payments and use expenses while having a warranty to cover repairs.
Financing - you will have a set payment every month for X number of years. Do you have enough "spare income" to afford those payments plus the fuel, campsite fees, and so on? If you finance used, do you have enough to cover unexpected repairs in addition to the other expenses?
Paying cash - do you have enough to pay for the RV plus pay for any required repairs needed at the outset? Do you have enough "spare income" to cover unexpected repairs in the future?
For me, buying used with cash was the better way. I put in a lot of money over the first 3 years getting it back in topnotch shape, but I was able to spread out the work as money was available. Without a monthly payment, I was able to go out much more often and still saved money in the long run.
For someone else, financing makes more sense because they have a lot of "spare income" to cover payments and use expenses while having a warranty to cover repairs.
