Observations from a camper window shopping trip

Thumperpull wrote:
IMHO as a financial advisor, if you have to finance for 12 years, you can't afford it. Only a home mortgage should have a note of that length.

You could be mistaken. If I can get a loan for 4.5 percent while over the same period of the loan getting an average annual annualized ROI of 7 percent, then your financial advice would be pretty sour. By the way, this really happened on my last RV loan, real numbers.

I'm in the camp that do what you have to now to take your family camping. Our granddaughters have been camping with us since they were embryos. Now that they are 14 an 12 we are seeing a possible end to some of the good times. 14 years went by in a flash and we are glad we had a trailer early.

Assuming no prepayment penalty if you paid extra to reduce the principal it would be like having having an automatic and guaranteed 8.5% return on your money. I know it is convoluted but this was the strategy I used in paying off my houses.

Boats,RV's are all given extended terms in order to make them affordable. Yes it is a game they play but many would prefer a smaller monthly payment and longer term vs. a higher payment and shorter term.
It's all about keeping the monthly payment low/affordable.
A wise consumer will pay more per month to shorten the term, knowing they are not totally obligated to the large payment if things get tight.
Without longer term financing the RV and boat industry would fade away.

chip.litch wrote:
Hi all - don't post often but today the family and I went window shopping today at a few Cincinnati area dealerships and I wanted to share a few observations.

1. Campers are expensive! Campers that have nice fit and finish and enough size for the six of us are 10-15K more expensive than the most expensive car I've ever owned (our Excursion)

2. I heard two salesmen tell customers that their Toyota Tundra and 1/2 ton Suburban were well capable of towing 32+ feet trailers. Those trailers were massive.

2.5 Under her breath, my wife said about the Tundra family - "the only place he can tow that trailer is home - and only if its no uphill."

3. Doing your homework is vital. There is so much out there. To not get taken advantage of - one must hit the dealership with a binder outlining everything they want in a camper.

4. I was really unimpressed with the fit and finish of many 30K campers. Lots of rough cuts and edges, very thin materials, spaghetti plumbing, etc.

5. Lastly for us - I really think the joy of owning a camper would take a hit if we were into the camper 300-500 dollars a month. I guess we will keep rocking our payed for 2003 Timberlodge all the while ogling the nice new campers we looked at today.

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Happy camping everyone. Be safe this weekend. Thanks to all you service members (past and present)

chip

What about Lamborghini Venovo which is about $4.5M? It is just like my dream car. What is your dream car?

I would like to comment on the op's topic. I am very torn right now. I have a Malibu 2810 by Skyline. Don't get me wrong I like my camper. However, I can't seem to fix a leak by the door. I'm looking into that again soon, and if I had it to do over I wouldn't have a manual slide. I've looked at other campers, but I'm not really sure what I want. I saw a much smaller Malibu and the dealer was asking more for that smaller unit than I owe on my bigger one. I'm just going to keep working with the one I have and when the right camper for me comes along I will try to purchase then.

The reason financing is longer on RV's/boats etc is because most people wouldn't finance $20-40,000 for 5 yrs like a car. When that RV/boat is sitting in their driveway or down at the local storage yard for 7-8 months out of the year then those $4-500.00 payments seem ridiculous for something that's not getting used. $200.00+/- is easier when it's not being used. Also IMO people already have other things financed and it's easier to afford. Nothing wrong with financing if you have the money. I just don't get this no financing thing. So someone that wants to get away for the weekend it's okay to get in their car and go to a nice hotel/ BnB, resort etc and spend 150-300 a night plus go out to eat somewhere. But it's not okay to take that same money and buy a TT or 5'er?
We camp about 30 nights a year. 30 x $150.00 (average room rate) = $4500.00. That's $375.00 a month. If the OP spends $200.00 a month on a newer RV financed for 12 yrs then he's paying $28,800 over the life of the loan. If he spends it on lodging then he's paying $54,000 over the same 12 years. Yes you would spend more on fuel, but my guess is it's a wash from having to go out to eat 3 x a day. And this thing about if you can't afford it you shouldn't have it. I guess we would all be riding horses cause their wouldn't be enough used cars for poor people to buy cause no one can afford to buy a new one.

It all depends on your budget. Our ROO was $200 a month....interest was higher then. The brand spankin' Rockwood is $208. Interest is much better these days. We do deduct it as a second home....requirements are that is have a bathroom, cooking facilities and sleeping space. We plan to pay it off sooner, but on what's called a "fixed income" means that only the income is fixed....everything else goes up in leaps and bounds. We would likely spend more than that going to a movie every week or out for a nicer dinner. We'd rather have the camper sitting on a great site, eating whatever it is we're fixing and maybe watching a DVD.

In a different time and a different place we had a boat....a BIG BOAT. We could afford it then, although DH now grumbles that we should have saved that money instead. Doubt that our DSs would have the same memories of us making a deposit at the bank that they do about the time on the boat and bringing their friends. "Remember the time when......." Even the DFs email or FB about those times, so the cost seems like a good investment.....sorta.

Start by looking at some QUALITY trailers, new or previously owned.

WoodGlue

Quality was hard to come by.

Amen to that...

You know, we never gave it a second thought to pull a 3-4 ton trailer in the 70's and 80's with a 150 HP 180 Ft lb carbureted truck/station wagon, but now we have 300+ HP and 300+ ft lbs in half ton and midsize trucks and there is all this hate. What gives? I (and friends) tow a 3 ton TT with a V8 Explorer and it works just great.