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
When it comes to their toys, which includes RVs, a great many people are caught up in dreams and desires and they want what they want and are willing to pay for it.
When it comes to RVs this has several outcomes. Again, they want what they want and are willing to pay for it. That results in a typically strong market for new RVs and a relatively weak market for used RVs. That also results in a high depreciation rate. Next when buying new, desires and skillful sales reps result in many people buying more than they really need. All those amenities and current decor mean spending more and more and often getting units that are homes away from home rather than just an RV.
All those desires and dreams often end up in disappointment. Often the buyers have very limited experience and later find they are less interested than they thought. Taking the kids camping sounds great when they are younger. As they approach teenage years, forget it. The last thing they want is a vacation cooped up with the parents. Again more used RV supply.
For those willing to use some reasoning when buying there are strong lessons. First don't buy until you are sure the big expenses and commitment will be worth it. Next don't overbuy. Buy something smaller, easier to use, and less expensive. Really consider buying used. You will take advantage of that massive initial depreciation. You might get a unit where the warranty repairs have taken care of some of the shoddy construction and poor materials.
As to paying: with rising interest rates it becomes way more expensive to borrow. The idea of borrowing at low rates and investing that money is not reasonable at this time. It is easy to become overextended. Now it not the time for that. In fact those who think they can afford to borrow or to pay with cash need to really think it through. We have had a great many years with low inflation, low interest rates and a booming economy. There clearly are going to be some adjustments in the economy.
When it comes to RVs this has several outcomes. Again, they want what they want and are willing to pay for it. That results in a typically strong market for new RVs and a relatively weak market for used RVs. That also results in a high depreciation rate. Next when buying new, desires and skillful sales reps result in many people buying more than they really need. All those amenities and current decor mean spending more and more and often getting units that are homes away from home rather than just an RV.
All those desires and dreams often end up in disappointment. Often the buyers have very limited experience and later find they are less interested than they thought. Taking the kids camping sounds great when they are younger. As they approach teenage years, forget it. The last thing they want is a vacation cooped up with the parents. Again more used RV supply.
For those willing to use some reasoning when buying there are strong lessons. First don't buy until you are sure the big expenses and commitment will be worth it. Next don't overbuy. Buy something smaller, easier to use, and less expensive. Really consider buying used. You will take advantage of that massive initial depreciation. You might get a unit where the warranty repairs have taken care of some of the shoddy construction and poor materials.
As to paying: with rising interest rates it becomes way more expensive to borrow. The idea of borrowing at low rates and investing that money is not reasonable at this time. It is easy to become overextended. Now it not the time for that. In fact those who think they can afford to borrow or to pay with cash need to really think it through. We have had a great many years with low inflation, low interest rates and a booming economy. There clearly are going to be some adjustments in the economy.
