Interest rates

TomG2 wrote:
Since the OP did not ask how to spend his money, I am not going to preach how I spend mine.

SAY IT BROTHER!!!!!!!!!!!!!!!! :C

Wow at some of the responses here, I've been in the camping business a long time, I don't need you to tell me how to spend my money. I asked a legitimate question and got some immature responses. By the way, every bit of the interest is tax deductible but go ahead and draw that cash out that would be drawing interest, that's your business. Thanks to the ones that gave an adult answer here. -Mark

0%! I pay cash! I do not give my money away to others!

2.99% at a credit union. This was for a new trailer for 60 months. The longer the term and the older the RV, the interest rates go up. We were able to put down 50%, arranged bi-weekly auto payments then rounded it up with the extra going towards principal. Work with your bank for smart financing.

3.25% on new trailer/extended warranty/WDH hitch and paying off old trailer... From jayco dealer, over twenty years (won't actually take that long to pay it off but it drops the payments per month) and no penalties to pay more or buy-out the loan.
0% on the SUV with extended warranty. 8 years term, from gmc dealer.

A friend of mine has been trying to sell his trailer for 3 years for " what he owes" but what he owes is 8 grand more than the trailer is worth . He can make the payments , but cant come up with the difference to sell . He financed for 15 years .... Finance wisely

I'm retired with a Union pension for life and also receive SS checks. Our 5er payment is just part of our monthly expenses. I only pay $274.00 a month for my 5th wheel. Hardly a budget buster. I don't worry about losing a job or much else. Everyone's situation is different. For us it's part of our entertainment. Way cheaper than going to motels or resorts for 40-50 nights a year, having to buy meals and sitting in a room looking out the window at what?

To the OP if you need a loan then get a loan. Sometimes you can't really put a price on satisfaction. Saving for 5-10 years to buy a trailer is fine. But what are you supposed to do for 5-10 years? I guess that's easy to do if the kids are gone and you're in your 50's and looking at a retirement RV. But what about younger families? I guess you could read travel magazines or sleep in a tent. The thing to do is keep the payment small so you have extra cash for other expenses and also to spend on trips.

Shop around, banks and credit unions are giving good rates on short term loans now if you have good credit. Often you get an extra 0.5% lower rate if the loan is paid automatically from your checking account.

In the past the only thing we bought on credit was our house. Since the 2008 crash, interest rates on loans are "upside down". In 2010 when we got our trailer I was ready to pay cash, but I could get a 3 year loan at 1.5% and was getting 3.5% tax free return on my investments, so better to borrow, came out ahead.

Recently bought a new 2500HD truck, same thing ready to pay cash, but could get a 3 year loan at 1.75% against my current 4% tax free investment returns.

Makes no sense, now. Those with good credit and don't need to borrow can come out ahead borrowing instead of paying cash.

Likewise, I am not going to tell an older couple to save for ten years so that they can start that tour of the United States that they have always dreamed of. Some might say that they should have started saving earlier, but we have no idea what they have been through. I would not require a young family to put off traveling and making RV memories just because they will have to pay a little interest on their loan. Great that you folks with lots of cash can pay up front, but not a requirement for enjoying life.

Just because someone is taking out a loan on a RV does not mean they cannot afford it. Since we are making more on our money than the loan is costing us it made sense to get a loan.

Telling someone that they should not get a loan when you do not know their situation just shows ignorance. I would rather buy with money costing me 4% than with money costing me 7%.