wanderlust1966 wrote:
Another question---since buying a rental is so much cheaper than a comparable RV in the private sector---when financing, is it possible to get underwater on the loan? I guess my inclination is to finance for as long as possible (144 mo? And I'm looking at a 2013 Class C at El Monte). TIA for any input on this topic!
Absolutely. It's loan to value. In theory, your purchase price is what the unit is worth (accounting for having been a rental, higher mileage, etc). If you finance for a longer period of time, there is less principle being applied each month. So, as the unit continues to depreciate, the question is does the principle portion of your monthly payment cover the depreciation and ultimately the continually updating value.
