20 year loan for RV?

Why are so many people interested in what someone else does with their money? Yes 20 year loans are available for Rv's given certain parameters. Most people finance RV's. These are simple facts to address the original question. But what I can't wrap my head around is why so many people care about someone else's finances. And I was really blown away at the sheer number of financial advisors and wealth managers that are also Rver's on this forum.

I have a friend that did just that. Financed for 20 years at $1500 per month. It is about 10 years old now, about wore out, worth about 1/2 what he owes on it, and still has 10 years of $1500 payments left. No thanks.

Make your current economic decisions based on what you know now. We know that 20 years is too long and 7% is too high of a rate. A mortgage on a house now is about 2 3/4 %.

qtla9111 wrote:
At 7% for a 20-year loan, a $120,000 motorhome will end up costing $223,000 at the end of the loan.

7% seems high. And yes you may pay $223,000 but much of that will be in deflated money. The picture is a bit more complex and depends on future economics that are unknown.

Yes you can. The key is not using the entire 20years to pay it off.

I might go 12 years if I lived in it.
I don't like to take out a 20 year mortgage on a house.
Just because you can, does not mean you should.

At 7% for a 20-year loan, a $120,000 motorhome will end up costing $223,000 at the end of the loan.

Check on RvTrader what you want to buy and then check the same unit that is 5, 10, 15 years old. Depressing.

Buy used, buy cheap and enjoy the camping and rving.

These type of posts always bring out those who try to "school" others on what they should do with their money, and how to "value" an RV. Pretty much anything you buy other than real estate is a "depreciating" asset, yet probably 90% (or more) of cars, trucks, motorcycles, boats, RVs, airplanes, etc. are indeed financed. Whether it's a short term loan, or a long term loan, it's no one's business other than the borrower. What's right for one is NOT right for all. I also laugh when I hear that an RV won't last more than 10 years! Seriously? WTH are you people doing to your RVs?

I'm 58, have been camping my entire life. I'm currently on my 3rd RV. All 3 were purchased used (at least 10 years old), and financed for 10-12 years. The first 2 were used for 15 years (still using the 3rd obviously) making them 25 years old when I sold them, and they were still in perfectly usable condition. That means that I could easily have continued using them for another 5. Were they worth a lot at that point? Of course not. But I don't buy anything for resale value; I buy for my use. If they are worth $0 when I'm done, then AFAIC I figured the cost of that RV perfectly. Anything over that is a bonus. The amount that I spent monthly on those long term loans were simply my monthly cost of recreation, a cost that was worth it to ME.

I'm not rich, although I will certainly be reasonably comfortable when I retire. But I could never have afforded to buy the RV's outright. And in financing them, I have given my 3 kids a lifetime of memories that continue to pay dividends to this day, by creating a love for camping that continues through them and my grandkids.

So let's make a deal. Those of you who can afford to pay cash for their RV (and want to) can continue to do so. Those of us that finance our RV (whether that's for 5 years or 20 years) can continue to do so. And neither group shall badmouth the other, since none of us walk in each other's shoes.

winniman wrote:
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.

Unless you blew all your cash on a depreciating asset. Those who financed still have cash and a choice to default the loan or not. Once the cash has left your hand, it's gone. Financing leaves multiple options. No options with cash. You'll see the same people that paid cash losing their jobs and selling their RV's at a tremendous loss.

I agree having multiple loans to leverage all your toys can be a disaster.

However in times like these a 20 year loan is more flexible than a 5 year loan. And yes get the one paid before you go in on to the second.