Forum Discussion

ugh's avatar
ugh
Explorer
Apr 19, 2015

What % of income for monthly payment consider okay

We want to go camping again. Since the accident, we are now ready to go shopping again, but this time we are thinking about Class A instead of TT. That means it will have larger payment and longer term than we would had with TT.

Is there some sort of general rule about how much per month based on percentage that is consider acceptable? I am thinking 5% since car payments are not supposed to exceed 10 percent. RV is consider a toy, so I am thinking 5%.

I know some of you will only pay cash because this is a toy. I want to create memories with my family, and paying cash is not possible. I don't want to get in debate about cash vs. monthly payments. I am going to get one regardless, but what is consider acceptable vs. too much. I will be looking at used class A.

67 Replies

Show More
  • ScottG's avatar
    ScottG
    Nomad
    Apr 19, 2015
    K Charles wrote:
    I always thought you should pay cash for toys. If you ask our kids about memories, the ones when we had a tent were far more memorable.


    Same here and that philosophy has served us very well. Especially when I lost my career job at 50 y/o.
    Not spending our disposable income on interest payments to lenders left us with the ability for me to semi-retire and just do work that I enjoy rather than have to live on.
  • Crowe's avatar
    Crowe
    Explorer
    Apr 19, 2015
    No one can can answer that except you. What are you comfortable with? A set percentage might not be the way to go. And it may depend on how long you finance a unit for. Don't let anyone tell you that you must pay cash-very few of us have that luxury. If it's "bite the bullet" for a lesser term so you are out of debit faster, then go for it. If you want a lower payment instead, take a longer term but not so long that you'll never get any equity in it. Your call, no one else's.
  • kohai's avatar
    kohai
    Explorer
    Apr 19, 2015
    You can get to 5% with any vehicle by stretching out the number of years.

    The unasked question is how much $ should you spend?

    I've heard it said that the value of all of your vehicles/toys that have a motor shouldn't add up to more than 50% of your household annual income.

    (I'm a cash for cars/toys person as well.)
  • time2roll's avatar
    time2roll
    Nomad
    Apr 19, 2015
    If payments on a 10 year loan look scary you are probably spending too much.
  • Jbrowland's avatar
    Jbrowland
    Explorer
    Apr 19, 2015
    Don't forget to include possible costs like storage fees on a large class A, maintenance, and other things like getting it ready to go. I spent well over one grand on things I needed for my RV and I was very picky about what I bought. If I didn't need it, I didn't buy it.

    All that said, I am one of those "if you can't pay cash you don't need it bad enough" people so I won't go there. I get it though. I waited five years to save enough to pay cash and we could have been having fun five years ago. Oh well. But I would urge you to buy used. No need to pay depreciation when someone else is willing to do it for you.

    Good luck and I hope you have a blast with whatever you get with your family!
  • K_Charles's avatar
    K_Charles
    Explorer
    Apr 19, 2015
    I always thought you should pay cash for toys. If you ask our kids about memories, the ones when we had a tent were far more memorable.
  • darsben's avatar
    darsben
    Explorer II
    Apr 19, 2015
    I guess you have to figure out your monthly DISPOSABLE income. That portion of your income after all expenses including, food, pocket money, retirement and savings set aside are figured.

    Then about 50-60% of that figure is available for your MH purchase

About RV Newbies

4,031 PostsLatest Activity: Jul 26, 2025