Motorhome financing

[daveb1256]

As newbies to the RV lifestyle dream we are researching and preparing to buy our first RV. We know we want a large Class A built with high quality which with our budget means older high quality versus newer high production/lower quality. With the current state of the investments markets, we are reluctant to withdraw all of the funds to pay cash. While investigating the credit markets for RV financing we were offered a loan in excess of 100K at a rate of 5% provided our down payment was 20%. Early prepayment penalty of $200 if repaid before 36 months, none thereafter. Can any of you offer any potential pitfalls we should be aware of? Or any experience with Boatloan.com? Thank you for your advice and relative experience!

[FloridaRosebud]

winnietrey wrote:


Simple, and in my opinion, the true answer " no money in it" Everything we read is from financial advisers who tell you how to retire. Not How to live your life. That would not pay much for them.

My best advice follow your heart, decide what it is you want, google things like why retire
You will figure it out. Do what you want, not what the conventional herd wisdom tells you to do, and god forbid the retirement/ financial industry. Cuze they are in it for them, not you

Yep, I agree. Most financial guys are in it for them. One must be diligent and make sure they do the right thing for you. For years I and some of my friends were told we needed $2,000,000 in the bank to comfortably retire. That is SO NOT TRUE. They just want you to give them that much money so they can make money off of you. As I've gotten older I've learned it's all about cash flow, not the overall amount. That realization has allowed me to back down and begin to enjoy the time my wife and I have left. As the old saying goes - no one on their death bed says I wish I had spent more time at the office....

Al

[1968mooney]

4x4ord wrote:

1968mooney wrote:
Found a nice used MH for $500,000. Should I sell 340 shares of Amazon and pay cash or borrow $400,000 at 4 percent interest and pay $100,000 down? Or maybe I need to forget the whole thing and buy more Amazon stock.

The way I would look at it is that if all I had for investments was 500k of Amazon stocks there is no way I'd be considering a $500,000 motorhome (An old 5th wheel and pickup truck would do just fine). But, if I could sell 340 Amazon shares, pay cash for the motorhome and we felt we could live comfortably on our remaining investments then the motorhome could be a consideration.

Noticed in your profile, you have a Citation. My Citation was built by Cessna. Who built yours?

[1968mooney]

4x4ord wrote:

1968mooney wrote:
Found a nice used MH for $500,000. Should I sell 340 shares of Amazon and pay cash or borrow $400,000 at 4 percent interest and pay $100,000 down? Or maybe I need to forget the whole thing and buy more Amazon stock.

The way I would look at it is that if all I had for investments was 500k of Amazon stocks there is no way I'd be considering a $500,000 motorhome (An old 5th wheel and pickup truck would do just fine). But, if I could sell 340 Amazon shares, pay cash for the motorhome and we felt we could live comfortably on our remaining investments then the motorhome could be a consideration.

:B

[4x4ord]

1968mooney wrote:
Found a nice used MH for $500,000. Should I sell 340 shares of Amazon and pay cash or borrow $400,000 at 4 percent interest and pay $100,000 down? Or maybe I need to forget the whole thing and buy more Amazon stock.

The way I would look at it is that if all I had for investments was 500k of Amazon stocks there is no way I'd be considering a $500,000 motorhome (An old 5th wheel and pickup truck would do just fine). But, if I could sell 340 Amazon shares, pay cash for the motorhome and we felt we could live comfortably on our remaining investments then the motorhome could be a consideration.

[winnietrey]

tragusa3 wrote:
winnietrey, I wonder why its so rare to see/hear this viewpoint? I so appreciate you sharing. You're about 15 years ahead of us. I'm trying hard to not have the regret with my own children. Wish you were closer, I'd enjoy sitting around the campfire and listening!

One last thing, then, I will sit down and shut-up. In the last 15 years, my guess is, if you count revenue lost, from the business, ( as we close it when gone) cost of the MH, over seas trips, cost of the MH trips. I am quite positive, it would be north of 200 to 250k.

Question is? which would I rather have 250k extra? ( the Dave Ramsey thing) Or the experiences, we have had. For us, we have not regretted, for an hour, minute or a second our choice.

But everybody is different, It has worked for us. Others may have a total different take on life, again I make no judgment, as to the best coarse for people

[winnietrey]

tragusa3 wrote:
winnietrey, I wonder why its so rare to see/hear this viewpoint? I so appreciate you sharing. You're about 15 years ahead of us. I'm trying hard to not have the regret with my own children. Wish you were closer, I'd enjoy sitting around the campfire and listening!

Simple, and in my opinion, the true answer " no money in it" Everything we read is from financial advisers who tell you how to retire. Not How to live your life. That would not pay much for them.

If you have time, and the inclination, research the history of retirement. You may find, as I did, it has little to do with us worker bees, it has to do with companies, believing younger workers are more cost effective, Governments that don't want young, un-employed young people roaming the streets, and the whole retirement industry.

I always laugh when, I see the picture of the retired folks on the bow of a sailboat, sipping wine, like we are going to be 18 again.

My best advice follow your heart, decide what it is you want, google things like why retire
You will figure it out. Do what you want, not what the conventional herd wisdom tells you to do, and god forbid the retirement/ financial industry. Cuze they are in it for them, not you

[tragusa3]

winnietrey, I wonder why its so rare to see/hear this viewpoint? I so appreciate you sharing. You're about 15 years ahead of us. I'm trying hard to not have the regret with my own children. Wish you were closer, I'd enjoy sitting around the campfire and listening!

[FloridaRosebud]

Well said winnietrey. We bought our first MH last year. Financed it...$300 per month, no big deal. Made a good downpayment. I'm 61 and want to retire, but need to work a couple more years to be comfortable in retirement, however, last year we took 6 weeks off, this year I'll take 8 or so weeks off, most of which to RV. Life is too short to miss it. As a consultant I have the ability to also work while out on the road as well. It took me until I was 60 to really understand this concept. Thanks for your insight....

Al

[winnietrey]

tragusa3 wrote:
winnietray, your points expand very well on the thought. I can already feel the aches, the fear factor, etc. 😞 I would enjoy hearing more of your story.

More directly to the OP's point. If you handle your finances perfectly, you just might miss the whole point. If you handle them poorly, you might not be able to get to the point. There is a fulcrum of sorts. Money on one side and experiences on the other. If it were a see-saw, I hope I finish with the experience side planted firmly to the ground and the money side high in the air!

Well, I appreciate it, and I will expand a bit. With complete discloser , others may feel totally different, and if works for them great. I am in no position to judge.

First full discloser,
1) we never blew every dime, we tried to hit the middle ground
2) At 64 I could retire tomorrow, but personally that is the worse fear I have, I would be bored to tears. I like what I do
3) We are self employed, we have control over our hours and work environment. Lack of that is a huge reason people retire
4)In my profession, I deal with a great number of retired folks. For a great many of them their primary activities seem to consist of watching TV and going out to eat.
5) the above has little to do with how much money they have, many could buy and sell me, but the common themes are health, fear, and the work it takes to travel.

I have spent a least the last 15 years trying to make sense out of what it is, DW and I want to do.

The big picture, in our world view, is clock is ticking, the younger you are the more fun it can be to do stuff. As an example our first trip over seas was 15 years ago. We have always rented a car, driven on the wrong side of the road and had fun. Our last trip was last year. Noticeable change, somehow those plane rides are longer, and driving is a bit more challenging. ( gonna be a cold day in Heck)before you catch me on a bus tour with a name tag.

End of the day I could write a book, on the ageing retirement thing, but I will close with this. My biggest regret is this, we have done a ton with the GD. And we did a bunch with the kids, biggest regret I have is, I wish we had done more with the kids.

Now this is just me, and the DW. It applies to no one else and I make no judgment. But for us, I say saving every dime, waiting for that mythical retirement, where supposedly you are going to have all this great fun is a load of you know what. To old, to sick to fearful, for many of us.

[ferndaleflyer]

First off I have never seen an armored car in a funeral procession. That being said I have done just about anything I wanted as far as travel,owned boats, fine cars, horses, race cars, bla bla bla! Been flat broke 4 times. Now here I sit 78 years old wondering what will happen to all my "stuff" when I am gone. Kids don't want or need it. My suggestion is you only go through life once, smell all the roses you can on the way, not dead ones on your grave.

[bobkatmsu]

You can have just as much fun in a pop-up camper as a Class A DP, especially if it's used for weekends and a 2 week vacation and still stay financially sound.

[tragusa3]

winnietray, your points expand very well on the thought. I can already feel the aches, the fear factor, etc. 😞 I would enjoy hearing more of your story.

More directly to the OP's point. If you handle your finances perfectly, you just might miss the whole point. If you handle them poorly, you might not be able to get to the point. There is a fulcrum of sorts. Money on one side and experiences on the other. If it were a see-saw, I hope I finish with the experience side planted firmly to the ground and the money side high in the air!

[winnietrey]

MetalGator wrote:

tragusa3 wrote:

Not advocating being stupid, but many of us loose sight of being balanced in this regard. Time is more valuable than your money.

Amen! x1000

.

I agree

At age 50, (14 years ago) we bought a MH, have taken 2 dozen plus 2-3 week trips, been to Europe 4X, We cut our work hours, took more time off. We would be many thousands richer had we not done it that way. But in the long run, now we would be now much poorer ( in the big scheme of life). The time spent with the GD, on many, many trips, the hiking all of it. The things we have seen. Those times will not come again.

What they don't tell us about getting older is, travel gets harder, you don't have the energy you used to. Your have more aches and pains, your fear factor increases (what if this or that happens).

Best to do stuff when you can, before you end up to sick, to old or dead, in my opinion. But that is just us, may not work for everybody

[MetalGator]

tragusa3 wrote:

Not advocating being stupid, but many of us loose sight of being balanced in this regard. Time is more valuable than your money.

Amen! x1000