Depreciation

D.E.Bishop wrote:
How come with a very high credit score a down of 15 to 20 percent is suggested and yet folks still owe more than the used vehicle sales prices after two years. I am thinking I should make at least 25 to 50 percent down not 3 percent like guys have said they were allowed to put down.

So it's just like pre-housing bust, no down for folks with really bad credit and then they find out they can't continue to pay and want a prospective buyer to bail them out.

My dad wanted a big 5th wheel. He already had a TH, but wanted to upgrade for his warped reasons. This was right after the stock drop and housing fiasco so he didn't have a lot of cash on hand. But his credit was excellent. He used the TH as a down payment and got $300/month payments. After about 1-1/2 years, he couldn't drive the big massive truck anymore, so decided to sell the 5er. He couldn't sell it for what he owed. He traded the truck in for a used dakota and sent the 5er to a consignment shop. They sat on it for over 6 months. I kept telling him to talk to a laywer and default on the loan. Finally, he said "stop making the payments" so I cancelled them for him. Two weeks later he died.

My siblings decided that they were going to default on the loan after his death. I had to explain to them that they couldn't do that. When they found out from the estate attorney that I was telling them the truth, they finally (after a good year plus) got off their butts and got the 5er sold at a loss.

I think my dad was convinced that he could enjoy this thing for the rest of his life and then the balance due would be taken out of the estate. Unfortunately for him, he lost enough in the stocks that he didn't have the monthly dividends to afford those payments anymore and got in a bind.

I suspect the salesman and RV finance guys push this idea. And few people can see down the road far enough to realize "but"...