oh boy....stupid me.... purchased my camper last summer... 2014 primetime rv... first camper ever... I didn't know any better... none of my family members nor friend camp or own campers so this was my wife and I sole decision...anyways, stupid me, not knowning any better financed this camper for 12 years... I didn't know any better.. spoke to my credit union for the financing and they told me most people finance these for 12-15 years.. I admit, I should have researched more, but I didn't... has anyone else made a big boo-boo like this? and no, I cant afford to double up on my monthly payments right now to pay off sooner... do these campers with proper care, generally last this long? I don't want a camper breaking down in two years with ten more years of payments...how bad are they to trade in? do they depreciate just like a car? I know its all too late now and we cant change this, but im just wondering if anyone else has ever made a boo-boo like this and financed the camper this long? or am I the only poor sole...LOL

oh, btw, im seasonal at a seasonal campground.. I only pull the camper twice per year, in the spring to the campground and in the fall back to the rv dealer for storage...so that should cut down on road wear and tear...

yankeeslover wrote:oh boy....stupid me.... purchased my camper last summer... 2014 primetime rv... first camper ever... I didn't know any better... none of my family members nor friend camp or own campers so this was my wife and I sole decision...anyways, stupid me, not knowning any better financed this camper for 12 years... I didn't know any better.. spoke to my credit union for the financing and they told me most people finance these for 12-15 years.. I admit, I should have researched more, but I didn't... has anyone else made a big boo-boo like this? and no, I cant afford to double up on my monthly payments right now to pay off sooner... do these campers with proper care, generally last this long? I don't want a camper breaking down in two years with ten more years of payments...how bad are they to trade in? do they depreciate just like a car? I know its all too late now and we cant change this, but im just wondering if anyone else has ever made a boo-boo like this and financed the camper this long? or am I the only poor sole...LOLI just financed mine for 8 years, but 12 years is fine too so you did not make a mistake. The key is to make that extra payment or two every year (I know you said you couldn't, but I would find a way to make it happen). With good care it will last 12 years easy. Just know that you will need to replace some stuff here and there over that time (tires, possibly bearings, possibly the awning fabric, and some minor roof repair).

Financing for 12 years is OK. Figure out what the payments would be to pay it off in 6, 8, 10 years & make those payments and pay it off early. OR - Our local credit union has loan sales a couple times a year where you can refinance your camper at a lower rate.

I financed mine for 12 years. I am now almost through year 11 and have no plans, in the next 6 years at least, to get rid of my TT.

Ours is also 12 years. A couple of movie nights and dinner out...the kind served on a plate, not in a box...would equal or exceed our payment. We deduct the interest on our taxes, so that's a plus. Camping is our peace and relaxation. Our yearly trip to FL with DS#1 would be/WAS a few years ago, more than twice what we spend now. Where can you find a hotel you'd even consider for $40 a night?? Weighing all facts,we're fine with our financing. And we're getting a better return on our investments than our interest rate in our TT.For sure you'll hear that if you can't pay cash for your toys you shouldn't have them....not everyone has that choice or makes that decision. Don't spend time fretting over your choice...spend that time planning some trips you'll remember forever. Enjoy!

Did I make a mistake in Financing? How long do you finance?

timjcarter9
Explorer
Mar 28, 2014
v10superduty wrote:
beemerphile1 wrote:
timjcarter9 wrote:
sherpaxc wrote:

I stand by my statement. Sell it, cut your losses, get your savings built up, then buy something used and less expensive. It is a hard pill to swallow, but I think it is the right pill.

Sorry - but this has to be one of the dumbest things I have ever read. Seriously.

Not a dumb thing at all, I'm not saying the OP should do this because it would be a very difficult and personal decision. However I do understand the concept and it can work.

The OP plans on using a seasonal site and not towing regularly. Most campgrounds with seasonal sites already have a number of older units for sale, parked and ready to use.

The OP takes out a personal loan for the gap between equity and debt plus the cost of an older unit parked and ready to go. Let's say it is $7,000. They now have a much smaller debt that can be paid off much quicker and with less interest. They don't give up anything of the camping experience but just may have more time to spend with the family.

Another option would be to take out a personal loan for the gap between equity and debt, and camp in a tent. Still camping, much less debt.

Like the Good Book says; "The rich rule over the poor, and the borrower is slave to the lender." It really is true.

Not sure why I am jumping back in but I am.. :W

There was a post about week ago about folks lacking
"reading comprehension.." I think that applies here.

The OP said
-he can handle the payment he has ok
-he knows he made a impetuous jump doing this
-he can't handle a larger payment
-he now understands he should (and probably will) make extra payments once another smaller debt is finished

His "ONLY" question in OP was "IF" his new trailer would likely last the term of his loan.

Your estimate of only $7000 to cover shortfall in loan AND buy a low price used trailer is WAY low IMO.

The shortfall will have to be financed also and at a shorter term and probably higher rate??
That means a higher payment than now possibly.
Really doesn't make sense?

Do you think a trailer being used as he plans will last him 10-15 yrs?
I do.

Exactly what I meant. For the op this is a ludicrous idea. Keep paying financing on the shortfall for years and have nothing. Them save for more years and have nothing. Meanwhile he can afford the payment and can enjoy the new unit for years to come. Not to mention he never asked for advise on dumping it and getting out of debt.

The better plan is to make extra payments as he can. There is nothing wrong with carrying debt you can afford for something you will use and enjoy. Not everyone has the mindset they have to be debt free and pay cash for what they want. One size does not fit all.
v10superduty
Explorer
Mar 27, 2014
beemerphile1 wrote:
timjcarter9 wrote:
sherpaxc wrote:

I stand by my statement. Sell it, cut your losses, get your savings built up, then buy something used and less expensive. It is a hard pill to swallow, but I think it is the right pill.

Sorry - but this has to be one of the dumbest things I have ever read. Seriously.

Not a dumb thing at all, I'm not saying the OP should do this because it would be a very difficult and personal decision. However I do understand the concept and it can work.

The OP plans on using a seasonal site and not towing regularly. Most campgrounds with seasonal sites already have a number of older units for sale, parked and ready to use.

The OP takes out a personal loan for the gap between equity and debt plus the cost of an older unit parked and ready to go. Let's say it is $7,000. They now have a much smaller debt that can be paid off much quicker and with less interest. They don't give up anything of the camping experience but just may have more time to spend with the family.

Another option would be to take out a personal loan for the gap between equity and debt, and camp in a tent. Still camping, much less debt.

Like the Good Book says; "The rich rule over the poor, and the borrower is slave to the lender." It really is true.

Not sure why I am jumping back in but I am.. :W

There was a post about week ago about folks lacking
"reading comprehension.." I think that applies here.

The OP said
-he can handle the payment he has ok
-he knows he made a impetuous jump doing this
-he can't handle a larger payment
-he now understands he should (and probably will) make extra payments once another smaller debt is finished

His "ONLY" question in OP was "IF" his new trailer would likely last the term of his loan.

Your estimate of only $7000 to cover shortfall in loan AND buy a low price used trailer is WAY low IMO.

The shortfall will have to be financed also and at a shorter term and probably higher rate??
That means a higher payment than now possibly.
Really doesn't make sense?

Do you think a trailer being used as he plans will last him 10-15 yrs?
I do.
campingken
Explorer
Mar 27, 2014
The best advice that you can get is from the guy you see every morning in in the mirror. If you like the travel and can afford it then enjoy it. If you have extra money at the end of the month one option is that you could invest half and use the other half for paying off loans early. Also it doesn't cost anything to look for a better interest rate than what you currently have.

No one size fits all. Our only loan is on our home and since it's a 30 year fixed at 3.25% we won't pay it off.
bid_time
Nomad II
Mar 27, 2014
gmw photos wrote:
Paying debt off early is a sure thing.

Hoping that a market fund is going make a greater return is a gamble.

....just sayin' .....
You are right. But then, I don't go for the sure things, I go for the things that have a very high probability for success and the likelyhood to be very successful.S&P 500 probabilities
gmw_photos
Explorer
Mar 27, 2014
Paying debt off early is a sure thing.

Hoping that a market fund is going make a greater return is a gamble.

....just sayin' .....
bid_time
Nomad II
Mar 27, 2014
sherpaxc wrote:

Well, what you read worked for me, got me out of debt, I learned a lesson (that cost me money), but am now debt free other than my house payment of which I'm paying extra every month on the principle. Something I can do because I'm not paying on other things. I'll have a house paid for in 4 years and I'm in my mid 30s. That is at a public school teachers salary. I can't be that dumb.

I've actually really enjoyed the discussion. It's good to read other people's ideas and opinions.
Did you ever stop and calculate how much money you would have if instead of paying your house off early, you invested that money in a S&P 500 index fund? Maybe, just maybe, you would today have enough money to pay your house off several times over. I can; but I won't. I pay 6% interesst on my house, over the last 10 years my S&P 500 index fund averaged 8.8% per year.
Caveman_Charlie
Explorer II
Mar 27, 2014
I didn't read all the 13 pages in this thread. I just wanted to add that I solve the financing problem by never doing it. I save up money first and then pay cash. I may not have a nice as stuff as some people but, it's all paid for.
winnietrey
Explorer
Mar 27, 2014
Just a comment, not directed at anyone. From my personal experience, and observation of other folks. It is easy to spend every dime you make. And it is easy to never spend anything, and hence never do anything.

Both approaches, it seems to me, don't generate much happyness.

The middle ground between those two, is what I think is the right approach.

But that, is more difficult to do, than the other two. At least in my opinion
usmc616
Explorer
Mar 27, 2014
As long as the payments are not killing you and you are enjoying the TT then I think you did good. I have no issue making payments on the things I enjoy. Life is short - enjoy your TT and as long as you take care of it you will have it for a long time.
bogeygolfer
Explorer
Mar 27, 2014
sherpaxc wrote:
timjcarter9 wrote:
sherpaxc wrote:

I stand by my statement. Sell it, cut your losses, get your savings built up, then buy something used and less expensive. It is a hard pill to swallow, but I think it is the right pill.

Sorry - but this has to be one of the dumbest things I have ever read. Seriously.

Well, what you read worked for me, got me out of debt, I learned a lesson (that cost me money), but am now debt free other than my house payment of which I'm paying extra every month on the principle. Something I can do because I'm not paying on other things. I'll have a house paid for in 4 years and I'm in my mid 30s. That is at a public school teachers salary. I can't be that dumb.

I've actually really enjoyed the discussion. It's good to read other people's ideas and opinions.

I agree that it's not dumb at all, and congratulations to you for "swallowing" that pill and moving on from a bad decision! Most of us have done the same things at some point in our life. As one of my good friends told me long ago (during my own "broke"): everyone just needs "one good broke".

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