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
JimK-NY wrote:valhalla360 wrote:
Operating on leverage works great until it doesn't...then it multiplies the losses. The ones talking about being savey, always gloss over this part and it would never happen to them...until it does.
The trick is to get ahead of the game. Once you have no loan payments, it's easy to save up for big ticket items.
You are certainly correct. It is possible to lose money when investing leveraged money. At the current borrowing rates and current investment returns that is highly likely.
Sadly very few people have any financial knowledge. I find it appalling that our schools do not teach anything regarding household finances. It is no surprise since the teachers are not educated in that regard. When I took out car loans and a mortgage, the rates were low and historical analysis predicted my 60:40 conservative portfolio would double my money with less than a 2% risk of falling short. Note that is falling short, not losing anything but a very small fraction of what I borrowed. That type of information is readily available with free online calculators.
Years ago I even bought a $40K truck totally with credit cards. It took a couple of cards and calls to up my borrowing limits. We paid our daughter's $30K tuition with credit cards. We paid off the cards immediately and had points for trips to Hawaii and to visit relatives on the other side of the country. As someone else pointed out, even taking a high cost RV loan can make sense it you get substantial incentives and there is no pre-payment penalty.
This is probably the wrong place to discuss financial matters including financing an RV, but if you blindly avoid all debt and pay off debts as soon as possible, it might be a good idea to gain some financial knowledge.
I think this type of forum is a great place to talk about finances. I don't think anyone is here to gloat about paying for cash because they have the means to do so and I think it's an important indicator of the health of the RV and banking industry to talk about rates, lending and cost related RV deals.
