20 year loan for RV?

Millenials and GenXers have it right. Only look at the cost per month and only pay that. If things go bad just go Chapter 7 or 13 bankruptcy. That is how they sell 1000$ telephones and 1E6$ RVs.

I can never again advise anyone to try to save for retirement. I had done this. No big toys and no great vacations for the last 28 years (after the kids moved out was our first chance), it all went into an account to make retirement comfortable.

Then came the abrogation. The regime decided that since they couldn't legally reward the labor organization that supported them well enough, they have to do something else. They did.

Until that time corporate bonds had been treated as real property, like I owned a piece of a building or a 1Kton stamping press. Even if the company was forced to liquidate, I would still get most of my money back. That is not what happened. They decided that they could buy out our (the plan's) interest for 5¢/$. Then they put rules in place that made the cost to recover that 5¢ to be 3¢$.

It was a little too late in my life for me to recover, so I have done the best I could with what I had left and lots of sweat.

Matt

troubledwaters wrote:

Ivylog wrote:
OMB, a 20 year loan on a depreciating toy. Even at 4% you’ll pay more than double for it. A trailer at the end of 20 years might be worth 1/10th of what you paid for it. :S

And in the meantime while you saved up for that RV, the kids grew up and were gone before they got the chance to see the country. One size doesn't fit all. Nothing wrong with resposible debt.

“Responsible Debt” on a depreciating toy... now that’s stretch.

We bought (for cash) a used 8 year old Aurstream, one of the few trailers that will last more than 20 years, and pulled it all over the country for the next 10 years with a used burb. Sold the Airstreams for more than I paid for it because the new ones cost so much more. Our kids have been in almost all the states and probably 30 NPs.

Like I said above “ I apologize in advance as it’s probably not a good time to take on a older person who is limiting his outside exposure.

time2roll wrote:

valhalla360 wrote:
That said, if you need a 20yr loan, you are spending more than you can afford, no matter how you try to justify it.

So do you take a lump sum out of your well funded retirement account and push yourself up a couple tax brackets or take out the low interest loan and pay over 4 to 8 years?

No, at 59.5 or older, with a “well funded retirement account” you’re not dumb enough to do that. You buy a less expensive used rig that you can more nearly afford.

cougar28 wrote:

Ivylog wrote:
I wouldn’t even get a 20 year loan on a home that hopefully, will increase in value.

So if that was the only way of owning a home I guess you would just rent and lose money that way or just live under a tree or maybe with parents supporting till you save up the money? Not everyone is born with a silver spoon!

I apologize in advance as it’s probably not a good time to take on a older person who is limiting his outside exposure.

I’ve only rented while in the service. I then bought for cash a used single wide MH which I added to making it a double wide with polyester curtains. 10 years and 3 children later we moved into a paid for new home... much of which I built myself over 2 years while running my own business.

Do the math on the difference in a 30 and 15 year loan. If you can’t swing the higher payments of a 15, buy a less expensive home and then pay 1 extra payment/year and turn it into a 12 year loan.

Your can buy newer RV with long payback periods ... but the interest rate will likely be higher than you expect.

If it were me I would prefer to buy a 10+ year well maintained low mileage RV that has already almost bottomed out on the depreciation curve. Of course you will have to pay cash or find creative financing.

Charlie D. wrote:

Desert Captain wrote:
"You can deduct the mortgage interest as a second home."

Not necessarily... recent changes in the new tax laws have restricted if not eliminated this deduction entirely for most folks. Better check with your accountant/tax advisor.

:C

:) With the new tax laws it is getting harder to use deductions. Married filing jointly has a stand deduction of $27,000. You must have deductions greater than that to claim anything.

Even if the deduction does not apply to you, the rest of the math still applies. If I get 10% ROI from my cash and spend 5% financing, I net 5%. I can't do that if I don't have my cash to work for me. That's the moral of the story.

Desert Captain wrote:
"You can deduct the mortgage interest as a second home."

Not necessarily... recent changes in the new tax laws have restricted if not eliminated this deduction entirely for most folks. Better check with your accountant/tax advisor.

:C

:) With the new tax laws it is getting harder to use deductions. Married filing jointly has a stand deduction of $27,000. You must have deductions greater than that to claim anything.

"You can deduct the mortgage interest as a second home."

Not necessarily... recent changes in the new tax laws have restricted if not eliminated this deduction entirely for most folks. Better check with your accountant/tax advisor.

:C

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".

time2roll wrote:

valhalla360 wrote:
That said, if you need a 20yr loan, you are spending more than you can afford, no matter how you try to justify it.

So do you take a lump sum out of your well funded retirement account and push yourself up a couple tax brackets or take out the low interest loan and pay over 4 to 8 years?

No you plan ahead and move it out of the retirement account over a few years.

Also, if you are paying it off over 4-8yrs...why not take a 4-8yr loan if you aren't spending more than you can afford.