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
A lot of posters have criticized the OP for getting into other peoples affairs. Many threads on this forum say " you need Bigger RV, Bigger Tow vehicle, Bigger Camper". Is it such a bad thing to suggest that some people are buying more than they can afford?
Getting a loan for a term longer than the RV is likely to last doesn't sound like a great idea to me. I guess that taking a long loan and paying it off early is just fine - just make sure that you really can afford to pay it off early and it's not just pie in the sky thinking.
These loans are setup with you paying mostly interest in the beginning and principal later on. It works out cheaper to take a 5yr loan and pay in 5 years than to take a 20yr loan and pay it in 5 years.
Are you serious? The banks made lots of ridiculous home loans to people that either couldn't afford it or were on the brink of not being able to afford it.
You are certainly right that the money is worth less in the future, but I'm not convinced it works out to 60% considering you are paying it out over 20 years.
Getting a loan for a term longer than the RV is likely to last doesn't sound like a great idea to me. I guess that taking a long loan and paying it off early is just fine - just make sure that you really can afford to pay it off early and it's not just pie in the sky thinking.
These loans are setup with you paying mostly interest in the beginning and principal later on. It works out cheaper to take a 5yr loan and pay in 5 years than to take a 20yr loan and pay it in 5 years.
Lantley wrote:
... I trust the banks to decide if someone is worthy of a loan.
Are you serious? The banks made lots of ridiculous home loans to people that either couldn't afford it or were on the brink of not being able to afford it.
Water-Bug wrote:
To the OP. Yup they're paying 75% of the purchase price in interest with $s that are worth 60% less. That equals 15% of the purchase price for 20 years use. ....
You are certainly right that the money is worth less in the future, but I'm not convinced it works out to 60% considering you are paying it out over 20 years.
