dealer advertising

[machunt]

As my wife looks for a used class A on line, she notices when she finds 1 she likes they have example of monthl payments. Is this a good starting point or ignore this completley.

[bob213]

way2roll wrote:

If you have money to invest do some homework, but in a good economy return on investments it's easy to find 5% return. My low risk 401 earns a lot more than 5%. Call a financial adviser. I work at a bank, I don't make this stuff up. But to be surprised that you can invest your money and make a profit greater than the interest on an RV loan, I would guess you really don't have money to invest.

So can you withdraw $80,000.out of that 401K to buy a new truck if you want to? I'm talking about money that I want to keep more liquid.
I can tell you that your guess is wrong and I really don't need your snarky comment.

[rk911]

magicbus wrote:

Lwiddis wrote:
“Actually the lender should be more concerned about this than the borrower because the RV is the security for the loan.”

Primary security for the loan, Dave. Finance company will come after other assets if they can’t get enough from selling the RV.

Thanks for the educational point, but by editing out a portion of my post you make me look a bit ignorant. And now for the rest of the story edited out of my post...

“ As long as the borrower has the funds to make up the difference should they decide to sell their RV they are fine.”

Dave

risk must be a part if the decision. cash is king, period.

[rk911]

way2roll wrote:

rk911 wrote:

rr2254545 wrote:
Yes because in the fine print you will see they have calculated 33 % down -most do not put that much down

most don't but most should...and more.

i'm an advocate of either paying 100% cash for your toys, in this case an RV, or at least putting down a large enough down payment in order to avoid being upside down on your loan. you always want the outstanding balance on the loan to be less than the current value of the RV.

Why would you pay cash for depreciating asset when you could invest that money and get a net return on your investment over financing?

risk. something goes bump on the night and your income stream is gone; a health crisis, a repeat of 2007/2008. any number of speed bumps. when one is debt free and controlling spending, savings and investments all things become possible.

[AllegroD]

No. Not a good starting point for financing anything. That is a dealer catch. You can get items within your monthly budget that are over priced and over valued.

There are a number of free mortgage planners out there that can assist you in knowing what your max loan value is and help you fit it into your monthly budget but the dealer does not care about that.

Figure out your loan ceiling and then stay within that when negotiating. Look for the best value within your budget.

[magicbus]

Lwiddis wrote:
“Actually the lender should be more concerned about this than the borrower because the RV is the security for the loan.”

Primary security for the loan, Dave. Finance company will come after other assets if they can’t get enough from selling the RV.

Thanks for the educational point, but by editing out a portion of my post you make me look a bit ignorant. And now for the rest of the story edited out of my post...

“ As long as the borrower has the funds to make up the difference should they decide to sell their RV they are fine.”

Dave

[machunt]

way2roll wrote:

machunt wrote:
Maybe i am not posting this correctly.
1) most people dont pay cash for 100.000 unit, i know some do but most dont.
2) i have bought many vehicles and rv,s and i never walk on to a lot and tell a slesman what i want my payment to be.
3) what i do is look at the advertising and say to myself if they are asking 20,000 down and a term of 10 years and your payment is 500.00 a month . now i know 1) how much i can spend a rv and i know how much downpayment i need.

Look at the price of the RV and compare nationally to what other identical units are selling for. Also, take a dealer's price and start at 30% less for negotiations to start. You might land in the 20-28% off - whatever you are comfy with. The payments the quote on their site is based on the price they have advertised for the unit - and it's inflated - a lot. Calculate your own payment based on the price you think you can negotiate at a rate that's available to you based on your credit and lender and the length of time you want to borrow.

That might be true for new, what about USED

[way2roll]

machunt wrote:
Maybe i am not posting this correctly.
1) most people dont pay cash for 100.000 unit, i know some do but most dont.
2) i have bought many vehicles and rv,s and i never walk on to a lot and tell a slesman what i want my payment to be.
3) what i do is look at the advertising and say to myself if they are asking 20,000 down and a term of 10 years and your payment is 500.00 a month . now i know 1) how much i can spend a rv and i know how much downpayment i need.

Look at the price of the RV and compare nationally to what other identical units are selling for. Also, take a dealer's price and start at 30% less for negotiations to start. You might land in the 20-28% off - whatever you are comfy with. The payments the quote on their site is based on the price they have advertised for the unit - and it's inflated - a lot. Calculate your own payment based on the price you think you can negotiate at a rate that's available to you based on your credit and lender and the length of time you want to borrow.

[way2roll]

bob213 wrote:
way2roll wrote:
Why would you pay cash for depreciating asset when you could invest that money and get a net return on your investment over financing?

Would you please list a couple safe places where I can get a higher return on my money than the interest rate on an RV. I've got money to invest and would love to make that kind of return.

If you have money to invest do some homework, but in a good economy return on investments it's easy to find 5% return. My low risk 401 earns a lot more than 5%. Call a financial adviser. I work at a bank, I don't make this stuff up. But to be surprised that you can invest your money and make a profit greater than the interest on an RV loan, I would guess you really don't have money to invest.

[machunt]

Maybe i am not posting this correctly.
1) most people dont pay cash for 100.000 unit, i know some do but most dont.
2) i have bought many vehicles and rv,s and i never walk on to a lot and tell a slesman what i want my payment to be.
3) what i do is look at the advertising and say to myself if they are asking 20,000 down and a term of 10 years and your payment is 500.00 a month . now i know 1) how much i can spend a rv and i know how much downpayment i need.

[2bzy2c]

X's 2^^

[bob213]

way2roll wrote:
Why would you pay cash for depreciating asset when you could invest that money and get a net return on your investment over financing?

Would you please list a couple safe places where I can get a higher return on my money than the interest rate on an RV. I've got money to invest and would love to make that kind of return.

To the OP... The worst question I hear from either a car or rv salesman is "How much do you want to pay a month? My answer...NOTHING.
They can adjust your payments to fit every budget, just ask them. But who wants to pay for something for 20 years? You need to negotiate out the door price. If you can't afford the payments over a reasonable period you don't need the rv.

[2oldman]

way2roll wrote:
Why would you pay cash for depreciating asset when you could invest that money and get a net return on your investment over financing?

Because you're paying more than cash over time, getting a net return is not that easy, and owning something feels better.

[Lwiddis]

“Actually the lender should be more concerned about this than the borrower because the RV is the security for the loan.”

Primary security for the loan, Dave. Finance company will come after other assets if they can’t get enough from selling the RV.

[way2roll]

rk911 wrote:

rr2254545 wrote:
Yes because in the fine print you will see they have calculated 33 % down -most do not put that much down

most don't but most should...and more.

i'm an advocate of either paying 100% cash for your toys, in this case an RV, or at least putting down a large enough down payment in order to avoid being upside down on your loan. you always want the outstanding balance on the loan to be less than the current value of the RV.

Why would you pay cash for depreciating asset when you could invest that money and get a net return on your investment over financing?