the big problem with Gap Insurance !

westernrvparkowner wrote:

seaeagle2 wrote:
My comment would be, obviously, it would be best to pay cash and never have any debt, and hats off to those who are able to make it work. If you choose to be underwater, Gap insurance is a wise move...

Credit is perhaps the greatest wealth building tool and distributor of wealth ever created. If the ability of average people to borrow money was eliminated , wealth would be even more concentrated amongst the few and no one would have the ability to improve their lot in life. Take housing as an example. If you couldn't finance the purchase of a home, you would be forced to rent your shelter. The landlord could then extract ever higher rents because the renter would have no alternative to renting. Saving money for a cash purchase would become more difficult and there would be no inventory to purchase anyway because property owners would always have a steady supply of renters. You don't sell the goose that lays golden eggs.
Responsible use of credit allows people to buy homes, purchase and expand businesses and improve their standards of living. It only becomes a problem when people either misuse or abuse credit.

I agree with this but, a RV is not a home, or business. I understand that it's OK to finance some of a RV but, to finance all of it seems like a mistake to me.

To the person that said they could never by a RV if they didn't take out a loan how is setting aside the payment in a saving account any different then borrowing the money and then making the payments ? Except, that a savings account pays you interest and a loan charges you interest. Though I do understand saving that much for a brand new RV would take a long time. ( Especially depending on the type of RV you are talking about) . You could save for a couple of years for the down payment anyway and not have to borrow all of it.