20 year loan for RV?

valhalla360 wrote:

way2roll wrote:
Not sure why the interest question even comes into play. You can deduct the mortgage interest as a second home. Personally I'd rather use the banks money, amortize the debt, take the interest deduction and have my cash work for me. Recent events aside - I can earn a conservative 8-10% in the market or a 401 and net 5% or more difference over what I financed. I don't consider RV's as toys especially the Class A's I've owned, but you guys paying cash for your "toys" might do well to take an economics class. Paying cash for a depreciating asset is far worse than keeping your cash and putting it to work, using the bank's money, get the interest deduction and earn profit on the cash you still have. I get tired of the same 4 crusty mattress stuffers and your condescending remarks about not only who does what with their money, but reducing peoples love for Rv's to toys and advocating that financing is stupid. You are the ones who are missing the boat and could actually net money by financing. But go ahead, spend your cash on a depreciating asset. Get out of the 30's and start understanding how financing can actually be to your benefit. You have less cash and a depreciating asset. I have all my cash, plus net profit from the market by having that cash, and the RV. But I guess I'm a fool. Been in the banking industry for 25 years, not about to take financial advice from someone who pays cash for a depreciating asset. I think that falls under the list of "what not to do".

So you pay $1000 in interest to get $250 off your tax bill?

Buying on margin works great when the market is red hot. When it takes a dump, it's really painful.

Did you miss the rest of the points?

Real life example, when we purchased our first Class A MH about 10 years ago, I could have paid cash. About $90k. instead, I said to myself how can I get the RV and not have to pay for it. So I kept the cash I would have spent on the RV, purchased a duplex as a rental ( I owned several rental properties at the time) and rent profit eclipsed what my payments would be on the MH. I applied a decent down payment on the MH and financed it for 10 years. Had I spent that money on the RV, I would have instead invested in a depreciating asset. And frankly would have made me sick to my stomach. instead, I invested that cash not only in an appreciating asset, but one that turned a residual profit. And I was able to do it because I financed the RV.

To each his own.