Why buy a new $125,000 motorhome?

pnichols wrote:

BurbMan wrote:
To the OP, I wouldn't finance a $125k MH either, but hey, who am I to criticize?

Hmmmm .... if you were in the banking business for years you of all people should realize that it's sometimes bad money management to pay cash for something if the extra cost from financing it is less than what you can make off the cash by investing it elsewhere.

i.e. I'm retired and have a mortgage on our home ... which is considered a bad position for a retired person to be in by money management experts. HOWEVER, the interest on my mortgage is less than what I'm making in my portfolio, so it would be unwise to draw the money out just to pay off the mortgage ... it may be a feel-good thing for me to do, but not a money-wise thing for me to do.

It's not a bad decision because real estate is considering an appreciating asset while a vehicle of any kind is depreciating asset....more so an RV....

There are many variables in financial planning...my opinion is that I wouldn't finance an RV. Also why many lenders have stayed out of the RV and recreational segments....when times get tough, the toys are the first to go.

IMO the economy had not yet "settled in" back to normality yet...banks are all over the map on lending policies. I am not a fan of regulation and government oversight but I think just as we have the federal reserve we need a return to Glass Steagal or some modern form to keep the banks out of the risky end of investments...that's why we have investment houses.

We all know that the greater the risk the greater the return, but there is a time and place to take risk and a time and place to play it safe. We have the investment houses if we want to take risk, we need the banks to be safe harbor if we don't.

This is not political commentary, this is economic commentary, regardless of who is in the white house.