Financing a truck camper
I just realized that financing a truck camper isn't as easy as financing any other type of RVs in California. Since California doesn't request a DMV registration on truck campers, my credit union doe...
Forum Discussion
Paying for items up front instead of financing can be done. We are on a single income because my spouse takes care of a relative and cannot commit to a job, yet we were able to pay off the mortgage a few years ago and have not had a vehicle payment since 2008 (only because it was a cheaper loan than my savings collected back then).
We buy some things new and others used, but keep most of them long enough that by the time they're sold there is little residual value. Timing of asset turnover can be topic of a whole other forum...
I know that items have a useful life and try to bank away replacement funds for the things we currently use. Priorities and interests in life change and the money put away reflects our current goals. This is no different than a business or condo association projecting future costs and building a reserve to cover expected expenditures.
The argument about the value of a purchase depreciating holds some merit. But by financing that purchase, the acquisition cost increases due to finance fees and actually puts you under water deeper even if you are spreading it over longer time period. Gambling that your purchase will be damaged or stolen while you owe more on it than it is worth is a very negative view of life that has not mirrored my reality. Expecting that your losses will be covered by the others that pay premiums sounds socialistic...
We buy some things new and others used, but keep most of them long enough that by the time they're sold there is little residual value. Timing of asset turnover can be topic of a whole other forum...
I know that items have a useful life and try to bank away replacement funds for the things we currently use. Priorities and interests in life change and the money put away reflects our current goals. This is no different than a business or condo association projecting future costs and building a reserve to cover expected expenditures.
The argument about the value of a purchase depreciating holds some merit. But by financing that purchase, the acquisition cost increases due to finance fees and actually puts you under water deeper even if you are spreading it over longer time period. Gambling that your purchase will be damaged or stolen while you owe more on it than it is worth is a very negative view of life that has not mirrored my reality. Expecting that your losses will be covered by the others that pay premiums sounds socialistic...
