Buy now and finance or wait and pay cash
Hello All! I want to full time when I retire in 6 years. Wanting to hear your opinions on whether I should buy something now and finance it or wait until I retire and pay cash. If I finance it ...
Forum Discussion
I think some points to be made:
This is a definitive six year wait until the time when the OP will retire not an indefinite "wait until I save the money".
This waiting period is not time the OP "could have been out there enjoying his dream" because he can't retire until then and the dream is based on his being retired.
A quick search of storage fees in New York gave this range of storage costs between $140 and $650 per month. Mid rate of $355 per month. And that's for a space to fit a short motorhome of less than 25ft.
A loan now for an RV that will sit 49 weeks out of 52 each year for the next 6 years will incur an interest rate of about 6-7 percent.
The numbers will look like:
Interest at 6 percent for 6 year loan of $50,000 = 9,662.08
Storage fees at mid price of rates linked above for 6 years = $28,440
Rental for 3 yeeks per year at $900 per week for 6 years worth of vacations = $16,200
Even by renting for each year's vacation, the OP will gain $21,902.08 in savings by waiting to buy for 6 years and paying cash.
If storage was not a factor, then buying now could be a positive even with low use, but those storage fees will eat a lot of money with no ROI. And storing a 30+ foot rig will cost more.
This is a definitive six year wait until the time when the OP will retire not an indefinite "wait until I save the money".
This waiting period is not time the OP "could have been out there enjoying his dream" because he can't retire until then and the dream is based on his being retired.
A quick search of storage fees in New York gave this range of storage costs between $140 and $650 per month. Mid rate of $355 per month. And that's for a space to fit a short motorhome of less than 25ft.
A loan now for an RV that will sit 49 weeks out of 52 each year for the next 6 years will incur an interest rate of about 6-7 percent.
The numbers will look like:
Interest at 6 percent for 6 year loan of $50,000 = 9,662.08
Storage fees at mid price of rates linked above for 6 years = $28,440
Rental for 3 yeeks per year at $900 per week for 6 years worth of vacations = $16,200
Even by renting for each year's vacation, the OP will gain $21,902.08 in savings by waiting to buy for 6 years and paying cash.
If storage was not a factor, then buying now could be a positive even with low use, but those storage fees will eat a lot of money with no ROI. And storing a 30+ foot rig will cost more.
