Rv loan rates!
Anyone looked at RV loan rates lately! For 800+ credit scores 8% or more! Even through local credit union. Who is buying these over priced RVs with these rates?
Forum Discussion
Bedlam wrote:
I have never financed discretionary purchases. It takes me a while to save up, but I do not have the overhead of loans slowing my saving. Paying off our home was the real factor in being able to pre save for purchases rather than financing them into the future at a higher cost.
That is out of date thinking that came from our grandparents era or earlier. I financed my last car and my pickup truck even though I had the cash. First dealerships typically get a substantial rebates when they write up financing. Hence we have been able to save money over the initial dealer negotiations. Second it past years rates were so low it made no sense to give them the cash. I financed my car and truck at about 3% and invested that money making over 7%. My mortgage did even better. The mortgage was at 3.2% for $300K. Within a the first 5 years I made over $100K on the money I mortgaged. That was with a conservative, diversified portfolio. In addition, I took a nice tax deduction and I had the money in hand if needed for any sort of emergency.
With rising interest rates borrowing to invest is not likely to make sense for a while but there are still other reasons not to pay with cash.
