Be Perpared to Pay if you want to Play
Just went to the Credit Union today to see about a loan for a used and possibly a new 5th wheel. Well, well, well, what a eye opener! If I get a 60-month loan for $38,000 on a used unit at 4.01% the...
Forum Discussion
Effy wrote:
Math is math and of course your payments will be high on a 5 year note. That's a lot to cram into a short span. That's why they offer 15-20 year notes on RV's.That's why they offer 15-20 year notes on RV's. Sure you pay a lot more in the long run but the monthly sting is less and makes actually living on a budget manageable.
While shopping for our last two motorhomes (used) we continually ran into people who were suffering greatly because they took out a long term loan on a liability that depreciates far quicker than the loan balance. It's common to find really nice 6-10 year old rigs that are overpriced, and firm on the price, since they have a 15-20 year loan, and they owe tens of thousands more than the thing is worth. Saddest of all is the widows we met who can't handle the motorhome at all. They have never driven the thing, and would have no idea how to set it up on a site. They are now alone and saddled with a stupid mistake their husband made. Trapped in a mortgage that far exceeds the value of their motorhome, and have no idea how to get out of the mess.
Sure taking an irresponsible long term loan on a steeply depreciating liability WILL make the payments more "affordable" short term, but for many, situations change, and half way through a long term mortgage, they discover that they really managed to screw themselves pretty well.
