I'm still convinced these people are crazy.
Years ago, pre-2008 in fact, I posted something that lighted a firestorm of indignation - I questioned the sanity of people who buy new RVs and amortize the purchase over 20-25 years. I had been to an...
Forum Discussion
I think it is part of the whole package of finances. True taking out these loans and paying on them for 20 years is not the best when under the lens of the microscope. But many people pay them off much sooner than their term.
The whole thing needs to be viewed in perspective. One or two financial vices probably can be tolerated if most of the house is in order. The RV loan could certainly be cheaper than a few nice dinners out each month, expensive clothes, art, or other expenditures which do not require loans. Remember too we're just talking about the cost of the loan. What about the RV itself? Not exactly a stellar investment-even when purchased with cash. FWIW when I bought mine (paid upfront) I wrote the entire thing off in my mind as not part of assets. I plan on keeping it 10 plus years and at that time the value will be greatly diminished.
But yes- if you're young and on a strict budget-best to buy used, find something a little sweat equity could raise the value (or maintain it for a few years). Skip the depreciation as much as possible.
The whole thing needs to be viewed in perspective. One or two financial vices probably can be tolerated if most of the house is in order. The RV loan could certainly be cheaper than a few nice dinners out each month, expensive clothes, art, or other expenditures which do not require loans. Remember too we're just talking about the cost of the loan. What about the RV itself? Not exactly a stellar investment-even when purchased with cash. FWIW when I bought mine (paid upfront) I wrote the entire thing off in my mind as not part of assets. I plan on keeping it 10 plus years and at that time the value will be greatly diminished.
But yes- if you're young and on a strict budget-best to buy used, find something a little sweat equity could raise the value (or maintain it for a few years). Skip the depreciation as much as possible.
