Financing Survey
Hey all, I'd like to take a quick survey of the group. Basically, when you bought your Trailer/RV, did you finance? But, lets go a little deeper. Not just did you finance, but these questio...
Forum Discussion
20% down
180 mos
4%
Something I learned early in my life and then later supported in school and in my banking career, NEVER use your own money on a depreciating asset and/or something with no return (let alone negative return). Some say cash is king and I find that's usually old school thinking wrought from learning out of the great depression. But you still lose more when you consider interest rates as low as they are, you transfer the financial risk to another party(sans credit), you leave liquidity in hand so your money can work for you (instead of against you in the RV). Look at it this way, if someone were to say you could pay cash and eliminate 4-5% financing on a front loaded loan but in return it's a total loss year after year, or you could have the same depreciating asset using someone else's money for a fee, and use your cash to invest in something with a positive return to offset the fee paid on the borrowed funds and have positive cash flow or at least something that appreciates. It's all in how you want to structure your finances. Cash is one and done. Financing leaves cash in hand to better invest but takes attention and diligence. Frankly I don't have cash. To me liquidity is wasted opportunity to reap growth. I am asset rich and cash poor, typically on passive income investments like real estate. I could be liquid if I needed to, but choose to make my money work for me, not dormant, or worse - against me. Cash in and of itself is essentially worthless especially sitting dormant. It's a means to an end. A vehicle to obtain what you want. A tool. You can make tools work for you to get more tools, or trade them for things that are worth less than what you paid as soon as you pay for them. I'll stick with paying the bank a paltry fee to buy my RV and use my money where it makes more cents (pardon the pun)
180 mos
4%
Something I learned early in my life and then later supported in school and in my banking career, NEVER use your own money on a depreciating asset and/or something with no return (let alone negative return). Some say cash is king and I find that's usually old school thinking wrought from learning out of the great depression. But you still lose more when you consider interest rates as low as they are, you transfer the financial risk to another party(sans credit), you leave liquidity in hand so your money can work for you (instead of against you in the RV). Look at it this way, if someone were to say you could pay cash and eliminate 4-5% financing on a front loaded loan but in return it's a total loss year after year, or you could have the same depreciating asset using someone else's money for a fee, and use your cash to invest in something with a positive return to offset the fee paid on the borrowed funds and have positive cash flow or at least something that appreciates. It's all in how you want to structure your finances. Cash is one and done. Financing leaves cash in hand to better invest but takes attention and diligence. Frankly I don't have cash. To me liquidity is wasted opportunity to reap growth. I am asset rich and cash poor, typically on passive income investments like real estate. I could be liquid if I needed to, but choose to make my money work for me, not dormant, or worse - against me. Cash in and of itself is essentially worthless especially sitting dormant. It's a means to an end. A vehicle to obtain what you want. A tool. You can make tools work for you to get more tools, or trade them for things that are worth less than what you paid as soon as you pay for them. I'll stick with paying the bank a paltry fee to buy my RV and use my money where it makes more cents (pardon the pun)
