Just my opinion
I have noticed quite a few times on this forum when people talk about financing a travel trailer they will get responses saying "save up and pay cash". Well here is my take on it: I will use my exact...
Forum Discussion
kohai wrote:
You're assuming it is an either/or scenario: either I buy it now or I wait 10 years and pay cash and miss the opportunity. That's a false dichotomy.
How about a third option? Find a way to pay cash, sell something, get a second job for awhile, spend less on other stuff. The average car payment in America is over $500 a month -- drive something else.
Your interest rate calculates out to 3.3ish. What if someone with less than quality credit does this at 8 percent - 10 percent? Is it still a good idea? What if it's a $80,000 trailer instead of $14,000? Still a good idea? Your scenario is a bit of a straw man argument.
What if you had invested that $4,000 over a 10 year period? That's missed opportunity not included in your calculations. You really missed out on $4,000 plus what you could have done with that $4,000 to make more money.
As my grandmother said about interest, those that understand it
get to receive it and those that don't understand it get to pay it.
here is someone who understands.
