20 year loan for RV?

After reading all the posts, I can only say if someone is living for today, only to pay tomorrow, they are possibly finding out right now why you shouldn't do it. I know people that have a new house, two new cars, and a yard full of toys. They are now both laid off. Things are going to get real for a lot of people.

ppine wrote:
Hey bid time. How is your stock portfolio doing?
Financing an Rv for 20 years is a bad idea no matter how you try to rationalize it.
Now is the wrong time to make any major purchase.

My thought exactly... making 10% puts your capital at risk and the risk has arrived. Hope you can keep making those payments as those extra ones usually go on the back of the loan... do not buy you any grace period.

I bought my 1992 Monaco Beaver Contessa for $15,000 the MSRP on it what's $325,000 it's a luxurious 3208 Caterpillar 4 speed transaxle Diesel Pusher, the body is in seriously nice shape with 0 delamination, solid as a rock handling down the road, I purchased the vehicle with cash and have been living in it since 2013, one of the best investments I've ever made, I will be heading from Virginia to Lake Chapala Mexico in a month or two and know that my rig will be trouble free, the only thing that has given me trouble is the hydraulic jacks that are on it for when I park long term, it's computer controlled,along with the air ride, I had to wire it all bypassing the computer, now it works fine + i have complete remote control. I would not go out and purchase a newer rig that has not proven itself over many years especially the **** they manufacture these days that has computer-controlled engines as well as drivetrain. Not even to mention slide outs. They are like electric windows only more **** to go wrong. :) I could sustain a sizeable EMP hit and the only thing I would probably lose is the radios,short wave,CB,PC and 65" TV if I'm using them at the time. Otherwise my 3208 will keep on tickin down the road as long as I feed it it's funky green juice. As far as finances go, dont belive the hype I have been holding Bitcoin a many a year yes it goes up and down, if I had of sold it at 20K I could have bought back at 3K thats a hell of a gain. Do not try and guess that U will come out ahead because U never know what U're Govt is gonna throw in the mix to screw U over next! :) I'm gonna be an expat an live the chill life down south, U can have this $h!tty american dream all to yourself.

I know lots of people that studied finance in college. They can tell you all about the futures market, commodities trading, day trading, leveraging real estate, etc.

One of them is bankrupt, one lives in a broken down motor home that does not run, several of them are in hock up to their eyeballs and today look like deer in the headlights. Their lives are a house of cards and they know it.

bid_time wrote:

valhalla360 wrote:
...Buying on margin works great when the market is red hot. When it takes a dump, it's really painful.

Not at all, it's only painful if you sell. Holding a paper loss costs you nothing, just like holding a paper gain nets you nothing.

Except on margin, you are paying out no matter what because the interest still needs to be paid.

Lynnmor wrote:

bid_time wrote:

valhalla360 wrote:
...Buying on margin works great when the market is red hot. When it takes a dump, it's really painful.

Not at all, it's only painful if you sell. Holding a paper loss costs you nothing, just like holding a paper gain nets you nothing.

I thought that "paper" nonsense was obsolete 30 years ago. If your portfolio is down 25%, you done lost 25%. Don't believe that? Ask yourself if your neighbor invests the same amount as your new low figure on the day you bottom out if he has more, less or the same.

There is so much bull that comes out of investment firms, for example:
In it for the long run.
Hang in there, it'll come back.
Market timing won't work.
And many more geared to keep all your money with them.

So if your portfolio is down 25% can you deduct it on your income taxes as a loss? NOPE
You pay Capital gains tax when you sell, you deduct losses when you sell; you get neither a loss nor a gain until you sell.
So - there goes the theory paper loss equals real loss.
You can keep your money in your mattress if you like, I prefer not to; but thanks anyway for the investment advice.

bid_time wrote:

valhalla360 wrote:
...Buying on margin works great when the market is red hot. When it takes a dump, it's really painful.

Not at all, it's only painful if you sell. Holding a paper loss costs you nothing, just like holding a paper gain nets you nothing.

I thought that "paper" nonsense was obsolete 30 years ago. If your portfolio is down 25%, you done lost 25%. Don't believe that? Ask yourself if your neighbor invests the same amount as your new low figure on the day you bottom out if he has more, less or the same.

There is so much bull that comes out of investment firms, for example:
In it for the long run.
Hang in there, it'll come back.
Market timing won't work.
And many more geared to keep all your money with them.

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.

valhalla360 wrote:
...Buying on margin works great when the market is red hot. When it takes a dump, it's really painful.

Not at all, it's only painful if you sell. Holding a paper loss costs you nothing, just like holding a paper gain nets you nothing.

ppine wrote:
Hey bid time. How is your stock portfolio doing?
Financing an Rv for 20 years is a bad idea no matter how you try to rationalize it.
Now is the wrong time to make any major purchase.

Down 18.4% since the beginning of the year. But you missed the point, I'm not in this for the short term. Like the title of this thread says "20 years". As a matter of fact, I'm doubling down and investing more right now.

So since December of 2013 (when I started tracking my return and keeping detailed records) I have an Average Annualized Return of over 7.5% per year. That's the point; long term the market returns (google it) 7% - 8% per year. So let's talk again at the end of the year. I don't even look at it nor do I keep records of it month to month (other then the quarterly statements they send me).