the big problem with Gap Insurance !

beemerphile1 wrote:

westernrvparkowner wrote:

Finance a $50,000 toy over 5 years at 4.5 percent interest you pay just less than $6000 in interest. That means that toy cost you an extra $100 a month to have the enjoyment of using it for 5 years versus setting aside the money to pay cash. And that doesn't take into account that the same toy may very well cost more five years into the future.
Of course people make bad decisions with credit. They actually can make bad decisions on just about everything be it money. narcotics, alcohol, love, marriage, career and on and on.But that does not make the underlying action bad for everyone.

Why do people always try to justify financing by talking about bigger dollars?

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.

While having fun in that $2,000 TT for a few years they can bank the money that would have gone to payments.

That said, if everyone did as I do, the USA economy would collapse. Our entire economy is fueled by debt.

Or maybe by buying, maintaining, repairing and trying to camp in a $2000 pile of junk would be so off-putting that they would just give up on it entirely. As for debt fueling the economy, it would be more accurate to state that responsible use of debt fuels the economy. In 2017 approximately 2.3 percent of commercial loans are delinquent, 2.4 percent of credit card debt is considered delinquent and the delinquency rate of residential real estate is approximately 3.2 percent. Automobile delinquency, which would probably mirror recreational vehicle rates the closest, is only about .6 percent. The fact is the vast majority of debtors are willing and able to manage that debt and are profiting from and enjoying the products and services that debt purchased.