All,Just to give a fair warning on RVDirect if you have or plan on looking/buying through them. From what I read, I read mostly positive reviews, but I am going through a big headache with them right now and they have been very uncooperative, to put it lightly. First if you plan on letting them finance it, you will probably not have an issue other than you wont get the best rate you could on your own. I think most people fall into this catagory.However, if you plan on bringing your own financing, the bank requires an Invoice that has the pricing on it so they can determine loan to value and RVDirect will not share this with anyone who brings external financing. This will either force your bank to walk away or increase your down payment requirement dramatically. I am working with Essex Credit who is a Good Sam/Costco partner and the lady told me she has not run across this as long as she has been doing this. No where do they tell you this until you start your own financing process. So buyer beware....

Thanks for the info. I am window shopping and have decided to go with a locally owned dealer in my area when I buy. Honestly financing an RV does not pencil out in my opinion. Wait save and then buy.

Oasisbob wrote:Thanks for the info. I am window shopping and have decided to go with a locally owned dealer in my area when I buy. Honestly financing an RV does not pencil out in my opinion. Wait save and then buy.We do the same. Saved for years and bought a small trailer. No instant gratification, but no payment either. That being said, if I was treated this way, I would walk. I would also make it crystal clear why I walked.

I don't see how anyone can afford to pay debt load (financing cost) on top of the price of the RV. You are under water immediately with absolutely no hope of ever getting on balance. When you sell, the depreciation and loan cost will more than pay for top flight accommodations. Yes I am a RV owner and have been for many many years.

I'd hazard that financing of not, buying an RV is a losing proposition, financially, for nearly everyone. (I'm sure someone will find an exception, but that would be rare.) For most people, refusing to buy until they could afford to pay cash would result in a large opportunity cost - they might not be able to do it until the kids are teenagers, or gone, or might never be able to get one at all.Recommending such a thing as The Way to do it is, IMO, a form of elitism - wanting to restrict the owning of an RV only to those with a high enough income or other available resources to be able to pay cash.Disclaimer: I financed both of my trailers for 10 years. In both cases, I paid them off early - 2 and 3 years respectively. I financed them the way I did because I wanted more control over my cash flow (which varies seasonally, and somewhat unpredictably).

Who's going to save $40,000 to buy a decent TT or 5'er? The average camper probably makes $60-100,000 with two incomes. After taxes nets maybe $45-75,000. More than likely has a mortgage of $1000-1500.00 per month, couple of kids and the usual bills that come with buying a home and raising kids. It would take years to save $40,000 for an RV. By the time they did the kids would be raised and gone. Whats the point in that? It's just too easy to finance an RV for 10-15 years with a low payment than it is to save and pay cash for most buyers. Cash or finance either way you lose your you know what after 10 years because of depreciation. Tack on finance charges and even more. No one buys one thinking they're getting a bargin.With the exception of a house most everything we buy is a losing proposition.

Warning on RVDirect for those currently looking

Oasisbob
Explorer
Jun 28, 2014
Thanks for the info. I am window shopping and have decided to go with a locally owned dealer in my area when I buy. Honestly financing an RV does not pencil out in my opinion. Wait save and then buy.
jfkmk
Explorer
Jun 28, 2014
Oasisbob wrote:
Thanks for the info. I am window shopping and have decided to go with a locally owned dealer in my area when I buy. Honestly financing an RV does not pencil out in my opinion. Wait save and then buy.

We do the same. Saved for years and bought a small trailer. No instant gratification, but no payment either.

That being said, if I was treated this way, I would walk. I would also make it crystal clear why I walked.
Homer1
Explorer
Jun 28, 2014
I don't see how anyone can afford to pay debt load (financing cost) on top of the price of the RV. You are under water immediately with absolutely no hope of ever getting on balance. When you sell, the depreciation and loan cost will more than pay for top flight accommodations. Yes I am a RV owner and have been for many many years.
atreis
Explorer
Jun 28, 2014
I'd hazard that financing of not, buying an RV is a losing proposition, financially, for nearly everyone. (I'm sure someone will find an exception, but that would be rare.) For most people, refusing to buy until they could afford to pay cash would result in a large opportunity cost - they might not be able to do it until the kids are teenagers, or gone, or might never be able to get one at all.

Recommending such a thing as The Way to do it is, IMO, a form of elitism - wanting to restrict the owning of an RV only to those with a high enough income or other available resources to be able to pay cash.

Disclaimer: I financed both of my trailers for 10 years. In both cases, I paid them off early - 2 and 3 years respectively. I financed them the way I did because I wanted more control over my cash flow (which varies seasonally, and somewhat unpredictably).
goducks10
Explorer
Jun 28, 2014
Who's going to save $40,000 to buy a decent TT or 5'er? The average camper probably makes $60-100,000 with two incomes. After taxes nets maybe $45-75,000. More than likely has a mortgage of $1000-1500.00 per month, couple of kids and the usual bills that come with buying a home and raising kids. It would take years to save $40,000 for an RV. By the time they did the kids would be raised and gone. Whats the point in that? It's just too easy to finance an RV for 10-15 years with a low payment than it is to save and pay cash for most buyers. Cash or finance either way you lose your you know what after 10 years because of depreciation. Tack on finance charges and even more. No one buys one thinking they're getting a bargin.

With the exception of a house most everything we buy is a losing proposition.
coolbreeze01
Explorer
Jun 28, 2014
I would finance with rvdirect. If the new rv is a lemon, then they might be more helpful if they own the paper on it.
Seems like it would be easy to refinance later. I don't know anything about borrowing money fyi.
dspencer
Explorer
Jun 28, 2014
Homer wrote:
I don't see how anyone can afford to pay debt load (financing cost) on top of the price of the RV. You are under water immediately with absolutely no hope of ever getting on balance. When you sell, the depreciation and loan cost will more than pay for top flight accommodations. Yes I am a RV owner and have been for many many years.

Not EVERYONE can afford to pay cash upfront!!!! I financed mine and not the least bit ashamed to admit it.
timmac
Explorer
Jun 28, 2014
Homer wrote:
I don't see how anyone can afford to pay debt load (financing cost) on top of the price of the RV. You are under water immediately with absolutely no hope of ever getting on balance. When you sell, the depreciation and loan cost will more than pay for top flight accommodations. Yes I am a RV owner and have been for many many years.

Maybe we all don't have $80,000 or more in the bank, I had $40,000 to put down on a $80,000 total purchase on a nice slightly used class A that I did not want to get away from me so financing was the way to go, yes putting down minimum on a brand new purchase one would be upside down, I and maybe others are not..
spoon059
Explorer II
Jun 28, 2014
I am very hesitant to finance a toy. To me, an RV is a toy. It isn't a necessity. That being said, we have been chasing the leak goblin in my current camper (bought used and paid cash) and don't know how much longer it will be able to provide us a safe and healthy vacation alternative.

We have a 20 month old and second one due in December. We want to continue to RV with our kids throughout their childhoods. It is a fun experience for them. I am willing (although very nervous) to get a loan to replace our inadequate trailer. I can replace lost money, I cannot replace their lost childhood.
jfkmk
Explorer
Jun 28, 2014
calamus wrote:
Oasisbob wrote:
Thanks for the info. I am window shopping and have decided to go with a locally owned dealer in my area when I buy. Honestly financing an RV does not pencil out in my opinion. Wait save and then buy.

This is the dumbest thing I have ever heard. I would bet 95% of people borrow money on a new RV. And did you borrow money on your house? Lots of us are full timers or live out of our RV and 5th wheels while we work. I for one dont what to drive a kia and live in a pop up either. So I guess I will make payment on my 5th wheel and Pay alot for diesel in my big 3/4 ton truck.

I'm not sure how being fiscally responsible could possibly be the dumbest thing you've ever heard. Obviously not everyone can save up cash for an rv purchase. However, for most rv owners, the rv is strictly for pleasure. I have a mortgage and we owe on my wife's car (to be paid off this month after 18 months). The difference is, we need a place to live, she needs a car to get to work, but I can't honestly say we need an rv (even though we love it)!

The thing is, if one saves up for a major purchase like an rv it makes it less of a financial burden even if you do finance a portion.

I know someone who "needed" this and "needed" that, but they didn't feel they "needed" to save up for any of these purchases. After a while, despite a very good salary, finance and interest charges became unmanageable. They lost their house and now live in a one bedroom apartment. Interest on their car loan puts the Jimmy Carter years to shame. They have nothing despite all the things they bought.

This is an extreme example, but don't knock being fiscally responsible.