the big problem with Gap Insurance !

I think we're being played by the OP.

OP tossed out the proverbial hand grenade and hasn't been back to amplify or provide any input on the responses.

Seems to become more and more prevalent with potentially controversial topics.

Mike

Our payment on our camper is roughly 3.5% of our take home pay on an annual basis. So, just because someone finances doesn't mean they are "poor" and "can't afford it". That also doesn't mean we want to come up with a bunch of cash out of our savings etc. to pay it off should something happen with it. That's why we have GAP.

Also, if something "catastrophic" happens and we both lose our jobs at the same time (likelihood of that is low), we can sell the house and live in the camper.

beemerphile1 wrote:

4x4van wrote:

I always wonder about anyone who questions my spending/recreation habits, since it has absolutely zero effect on them. How is my RV loan or my choice of toys or my style of camping any of their business?

The topic of the thread is gap insurance which is purchased to protect one when they are upside down on a loan. I personally don't care what you or anyone does.

I offered an alternative to gap insurance which is to get what you can actually afford to purchase. Being able to meet a monthly payment on a vehicle that is worth less than you owe, is not the definition of being able to afford something.

And I would simply disagree with your definition of being able to afford something. If I can afford the payment, then obviously I CAN afford it; not much different than your mortgage (yes, I know that one is a depreciating asset and one is "usually" an appreciating asset, but the fact remains that most are upside down on their house for a good portion of their term); the current value of an item (at any point in time) is in some ways irrelevant to it's affordability.

The past 30 years of memories made with my family is solid evidence that I was in fact correct in financing my toys, even if at times that transactional condition was "upside down". Obviously, YMWV.

Yes, the thread started with comments about Gap insurance, but OP basically stated that if you finance a depreciating asset, your clearly an idiot.

Maybe OP just woke up and realized that, and he's pissed at himself for financing a depreciating asset.

Why would you pay cash for a depreciating asset? Aren't you just throwing your money away?

I doubt anyone comes to RV.Net for financial advice.

Mike

beemerphile1 wrote:

4x4van wrote:

I always wonder about anyone who questions my spending/recreation habits, since it has absolutely zero effect on them. How is my RV loan or my choice of toys or my style of camping any of their business?

The topic of the thread is gap insurance which is purchased to protect one when they are upside down on a loan. I personally don't care what you or anyone does.

I offered an alternative to gap insurance which is to get what you can actually afford to purchase. Being able to meet a monthly payment on a vehicle that is worth less than you owe, is not the definition of being able to afford something.

That is not entirely accurate. Make a bad deal on a heavily depreciated item can yield a gap even with a large down payment in the early periods. I equate the very risk adverse purchasing gap insurance in much the same way the cash crowd is willing to forgo investment returns for no payment. Neither situation is necessarily right or wrong and both have their risks and rewards.

4x4van wrote:

I always wonder about anyone who questions my spending/recreation habits, since it has absolutely zero effect on them. How is my RV loan or my choice of toys or my style of camping any of their business?

The topic of the thread is gap insurance which is purchased to protect one when they are upside down on a loan. I personally don't care what you or anyone does.

I offered an alternative to gap insurance which is to get what you can actually afford to purchase. Being able to meet a monthly payment on a vehicle that is worth less than you owe, is not the definition of being able to afford something.

pnichols wrote:
Reading forums like this with a "my way works ... who are you to question it" closed mind is a waste of time of the person who reads it that way and of the person who took the time write it in the forums, IMHO.

Yup, I have no problem with people telling me how "they" prefer to do things; as you say, I/we can all learn from others' ideas/perspectives/methods. But I draw the line when people try to tell me that the way "I" am doing it is wrong. I, my wife, my kids, and my grandkids would all tend to disagree.

I was raised with the idea that you should work like you're going to live forever, but play like you're going to die tomorrow. Save all you want, but you have no idea when your time here is up. And to drill that idea home, my mother was killed in a motorcycle accident at 42 yrs old. I'm going to live today, because it's the only thing that is really guaranteed.

Personally, I think both extremes are not for me. What the save, save, crowd forgets is, wait to long, kids are grown and gone. And you are to old, to sick, to afraid or to dead to do anything. And then all the money in the world means little.

On the other hand spend every dime, you end up living in a cheap apartment, with no money to do anything and eating Mac and Cheese

Truth is in the middle, save some, spend some. As for us, we have traveled quite a bit, Motorhomed quite a bit, and spend many, many thousands of dollars doing it, and have still always saved.

End of the day, those memories, times with kids, places we have seen, adventures we have had, are of much greater value to us, than the extra money we would have. Had we not done it.

Just how I see it, not for everybody. Buying something new, now and then, paying a little interest, probably won't put people in the poorhouse. On the other hand buying lots of stuff, paying a lot of interest on everything from RV's to credit cards will put you in the poorhouse

Reading forums like this with a "my way works ... who are you to question it" closed mind is a waste of time of the person who reads it that way and of the person who took the time write it in the forums, IMHO.

I love to have others tell what they are doing and did ... so that just maybe I can learn something that I should consider changing with respect to my current way of doing things. That's exactly the kind of input I need to help make continuous optimizing improvements and adjustments in how I do things and how I live my life.

I will never know all there is to know about just about anything and unfortunately may eventually have to pay dearly for either that lack of knowledge or worse yet - having that knowledge but taking no action based on it. Certain inputs from others - worded brashly, unkindly, or kindly - can and should be used as a powerful way to optimize how one is living and conducting their life ... no matter how old the receiver of the new-to-them input is, or how high the intrinsic IQ of the receiver of the new-to-them input is.

There are many ways to learn things other than through only experience or YouTube ... if your mind is open to them. ;)

beemerphile1 wrote:

A family can have just as much fun in a $2,000 TT or popup that was paid for in full as they can in a $50,000 RV or a $250,000 RV.

Who are you to decide what type of RV will make me (or anyone else) happy? Based on the type of camping that I do, and the other toys that I take along, a $2,000 popup is NOT going to work.

Walaby wrote:
Better yet.. why do people feel the need to comment on others financial transactions and decisions. Why can't people just let adults make their own decisions without judging them?

Maybe they want to have fun in a $50K RV instead of a $2K RV. Who are we to judge.

Mike

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I always wonder about anyone who questions my spending/recreation habits, since it has absolutely zero effect on them. How is my RV loan or my choice of toys or my style of camping any of their business?