Financing

Jayco-noslide wrote:
Financial institutions and lenders are part of a culture that has for many years been successful in convincing us that borrowing money is not only OK but actually a good thing. Acceptable car loans have been stretched from 3 years to who knows how long, etc, etc. We've been tricked into thinking that borrowing at low rates is good and actually makes us money. Wrong. Nothing beats being debt free, paying cash and putting monthly payment amounts away to spend for our next cash purchase. Save borrowing for a home or starting a business.

I've been on both sides of the fence and couldn't agree with you more. My ex-wife made pretty good money, but thought that as long as you could make the minimum payments on multiple credit cards, you were in good shape. It was a miserable existance.

When I met my current wife, she was making little but knew how to manage money. She had her own house and believed that if you can't afford it, don't buy it. We now have the things we want and have no debt with the exception of our mortgage (almost paid off) and one car payment (also almost paid off).

It's amazing how much more you can afford when you aren't paying interest on everything.

Oops error post

How can you compare credit card debt to a car or rv debt. Not at all the same, stupid comparison. My investments made over 7 percent interest (average annualized return) over the last 10 years. My rv note was 4.6 percent Over the same 10 years. I'm way ahead, end of stupid comparison.

X2 - There you go !

wing_zealot wrote:
How can you compare credit card debt to a car or rv debt. Not at all the same, stupid comparison. My investments made over 7 percent interest (average annualized return) over the last 10 years. My rv note was 4.6 percent Over the same 10 years. I'm way ahead, end of stupid comparison.

I'm not comparing going into debt with managing money. If you are earning more on investments than what you're paying on an rv loan, then that's the latter.

However, some are of the mindset that as long as they can afford the monthly payment, even if it's just barely, then everything is good. That was my ex-wife's position. Unfortunately, unexpected expenses pop up and suddenly you can't make the minimum payment. Rv loan, credit card, car loan, mortgage you really can't afford....it doesn't matter if you're barely making payments during the good times.

Going into debt for an rv is more like credit card debt than you think. For MOST people, an rv is simply a toy, NOT a necessity. Therefore, you shouldn't get to the point where you're stretching out the loan term so far so you can barely make the payments. They depreciate so fast you're under water almost immediately. I've read several posts here where folks are in a financial bind and can't even get enough for their rv to cover the loan balance. That is going into debt, not managing money.

Most folks can not pay cash for either. Most folks have some type of car payment. Now as for the rv. I see it this way. My kids were 6 & 10 when we got into rving. If we waited til we could pay cash then they would be out of college & all the memories we have now would have never happened. Some people buy boats, some rent cabins, some do drugs, some somke cigs, some drink...we use about $250/ month on our 5th wheel. I WOULD NOT THINK TWICE ABOUT FINANCING AN RV. Get what you want & enjoy life. Within reason...of course.

zackyboy3rs wrote:
Most folks can not pay cash for either. Most folks have some type of car payment. Now as for the rv. I see it this way. My kids were 6 & 10 when we got into rving. If we waited til we could pay cash then they would be out of college & all the memories we have now would have never happened. Some people buy boats, some rent cabins, some do drugs, some somke cigs, some drink...we use about $250/ month on our 5th wheel. I WOULD NOT THINK TWICE ABOUT FINANCING AN RV. Get what you want & enjoy life. Within reason...of course.

X2 Many of us feel this way and don't bow to the preachers! And we are doing well in retirement as having an RV loan didn't ruin us.

I agree with the poster that said that an RV should never be considered an investment but you are purchasing a wonderful "lifestyle". Also, I would never advise going RV to have cheaper travel(in the long run). But I don't agree that you can't put a price on these things. Everything has a cost. It enters into most of our decisions directly or indirectly; where to eat out, how often, travel activities and especially an RV, the 2nd most expensive purchase in our lives.

If you are not a member of a Credit Union, join one and start building savings.
If you don't have a hefty down payment, save and wait until you do.
IMO, buy the truck first. Personally, I would get a relatively new Ram 2500 Cummins turbo diesel. Others, of course, would recommend a Ford or GM product. It is your choice. Then look for a fiver to match the truck. Keep in mind you do not want the latest, greatest, biggest trailer for the first time. chances are, there will be something you do not like about it, and you will be wanting to upgrade soon.
There is a chance that if your down payment is not large enough, the Credit Union may want (or require) you to buy "Gap Insurance". This is insurance that pays the excess, if any, between what you owe and what your vehicle insurance policy pays in the event of a total loss. It isn't expensive, and it gives some peace of mind.

fj12ryder wrote:
"Main question is will taking out two large separate loans be hard to do that close together?"

Since none on here know your financial history and current financial situation, that's a question that no one here can answer. Not unless you wish to post your bank account figures, earnings for the past three years, number of dependents, number and amount of all loans, etc.

However, if I were looking to buy an trailer/5th wheel and a truck to pull it with, I would definitely buy the trailer/5th wheel first. Too easy to buy the truck first, then buy a unit that's too big to be easily pulled by said truck. Buy the tote first, then buy the toter. That's my thought.

Assuming you *don't* have an RV now......

And you wish to purchase a - 5th wheel *TOY HAULER*.....

The above is *mostly* good advice.

Disagree with - "buy the trailer (TOY HAULER) first".

Whether it's a TT or a 5th wheel *TOY HAULER* you need at least a 3/4 or preferably a 1T truck.

Suggest you look for a good used truck first.
(Should be lots of farm folks in WY selling their trucks?)

Then look for a used toy hauler for sale -or- maybe a "combo" of both.
(folks with toy haulers do "move up")

For financing - new or used - discuss your personal financial situation (and intentions) with your credit union or bank...:W

BTW - you might want to spend some time on the *TOY HAULER* forum (here) - glean info, ask questions, etc.

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