Travel Trailer Depreciation?
What is the "rule of thumb" depreciation on used travel trailers? I know that if the MSRP is real(lol) than 25%-30% off new. what is the norm for 2-5 year depreciation schedules? thanks to everyo...
Forum Discussion
Let me also add that I have moved into the cash only camp. In 2011 I was like most folks, and thought of credit as a tool. Shortly after our first TT purchase I started subscribing to the Dave Ramsey plan and gave up using credit.
Our investments money is separate from lifestyle/recreation purchases, so I don't do the math at ~8+% investment return vs. ~3-4% interest charge. What we do now is actively make monthly payments to our own money market for the future purchase of cars, TT, vacations, etc.
At first there is a delay in making purchases since we don' t use debt. However we looked at what a typical car payment is, $450, plus a second payment like TT/Boat/CC what ever at $350, and stated paying that to our self on top of regular retirement and investment savings.
So as you can see I f you get serious about getting out of debt, it takes the average household 24-36 months, then start making an $800 payment to yourself in no time at all you can purchase anything you want with cash. Another funny thing happens too, buying new is less important then finding the guy who bought new one or two years earlier then lost the desire or ability to keep the item and you buy it from them at a deep discount. You pay half of a new price on 2 yr old item and then all of a sudden who cares about warranty, you saved so much you can pay cash for any service you can't self perform.
This is just a different way to think about money and use it. Anyone can do it if they want, but it does take some discipline. For us, we were fortunate to have manageable debt levels when we decided to change our attitude, so it took about 17mths to get out from under it, and it was absolutely worth it for us and our future.
Our investments money is separate from lifestyle/recreation purchases, so I don't do the math at ~8+% investment return vs. ~3-4% interest charge. What we do now is actively make monthly payments to our own money market for the future purchase of cars, TT, vacations, etc.
At first there is a delay in making purchases since we don' t use debt. However we looked at what a typical car payment is, $450, plus a second payment like TT/Boat/CC what ever at $350, and stated paying that to our self on top of regular retirement and investment savings.
So as you can see I f you get serious about getting out of debt, it takes the average household 24-36 months, then start making an $800 payment to yourself in no time at all you can purchase anything you want with cash. Another funny thing happens too, buying new is less important then finding the guy who bought new one or two years earlier then lost the desire or ability to keep the item and you buy it from them at a deep discount. You pay half of a new price on 2 yr old item and then all of a sudden who cares about warranty, you saved so much you can pay cash for any service you can't self perform.
This is just a different way to think about money and use it. Anyone can do it if they want, but it does take some discipline. For us, we were fortunate to have manageable debt levels when we decided to change our attitude, so it took about 17mths to get out from under it, and it was absolutely worth it for us and our future.
