Did I make a mistake in Financing? How long do you finance?

[yankeeslover]

oh boy....stupid me.... purchased my camper last summer... 2014 primetime rv... first camper ever... I didn't know any better... none of my family members nor friend camp or own campers so this was my wife and I sole decision...anyways, stupid me, not knowning any better financed this camper for 12 years... I didn't know any better.. spoke to my credit union for the financing and they told me most people finance these for 12-15 years..
I admit, I should have researched more, but I didn't... has anyone else made a big boo-boo like this? and no, I cant afford to double up on my monthly payments right now to pay off sooner... do these campers with proper care, generally last this long? I don't want a camper breaking down in two years with ten more years of payments...how bad are they to trade in? do they depreciate just like a car?
I know its all too late now and we cant change this, but im just wondering if anyone else has ever made a boo-boo like this and financed the camper this long? or am I the only poor sole...LOL

[bogeygolfer]

bid_time wrote:
Dave Ramsey is a joke.

I see you're from Michigan. Are you, by chance, involved in municipal government in the City of Detroit? 😉

[Cotay]

bid_time wrote:
Dave Ramsey is a joke.

Although I firmly disagree with Ramsey that debt is in and of itself a bad thing (assuming you have more assets than debt), he does a lot of good helping people get out of crippling debt. Sure the "debt snowball" plan ends up costing more interest in the long run for many, the principle is to motivate the debtor to continue. His strategies can defnitely lead to improved lives. I don't see how that is a joke.

[APT]

OhHowIDislikeDaveRamsey and even more his "fans".

[bid_time]

Dave Ramsey is a joke.

[mich800]

In that scenario, paying the snowmobile first is the most logical. That is if your intention is to reduce your debt. If you only want to reduce your interest cost than the highest rate loan first should be your option. I am not not necessarily a Ramsey fan (just too all or nothing attitude) but beemerphile is right on the mark for this situation.

[bigdogger]

Squealers wrote:
Here is another way to look at this. Our TT is 10 years old. 2004 model. (we bought it 4 years ago, we didn't finance)

If I had bought my rig new and financed it for 12 years I would have 2 years left on my TT, and we love this thing, and know it would last as long as we wanted to keep it.

Go out and enjoy this thing!

We plan on moving to a Diesel Pusher in 5 years and sell the TT as we start our pre-retirement practice.

So enjoy, with care, you could pass this rig on to your kids.

Spot on. You sound like you are level headed and reponsible. What you did was take a tool available to you, credit, and used it to take advantage of a once in a lifetime opportunity, quality time with your pre-teen children. If you were offered the option of getting that payment, the interest on the loan and all the depreciation and other costs of that rv back at the cost of all the times you used that rv I seriously doubt you would even give it a minute's consideration before saying NO.

[fx2tom]

IMO pay the highest interest loan first. Though I see your point about it being easier to pay the snow mobile loan off the trailer will cost you more in interest.

[beemerphile1]

yankeeslover wrote:
...which would make more sense to try to make extra payments on...

Opinions vary. The conventional wisdom used to be that the highest interest rate loan would get the extra money. I used to believe that and practiced it until-

A guy named Dave Ramsey started teaching to pay off the smallest loan first. Yes it will cost a little bit more in interest but you gain the satisfaction of getting a loan paid in full sooner. After paying off the first then you apply the first payment plus the extra to the next larger loan. It is called a debt snowball because it gets easier and the momentum builds as the months go by. You gain the feeling of satisfaction and then motivation to continue.

You should really check out his teachings;
http://www.daveramsey.com/home/
He has a radio show, gives seminars, and many organizations use his materials to teach classes. I suggest you and the wife take one of his courses. It really can change your life.

Download his podcasts for free and listen at your leisure if he isn't on a station local to you.

For a lot of fun read the section of Dave Ramsey's site called 'Stupid Tax'.
http://www.daveramsey.com/articles/article-list/category/lifeandmoney_stupidtax_user_generated/

[yankeeslover]

heres a questions, while we are at this...once again, im the OP... not only do I have this RV loan, I also have auto loan and a snowmobile loan..(3 years left on the snowmobile loan)... which would make more sense to try to make extra payments on? the rv is the longest term and higher interest.. would it be smart to add as much on that as possible, or try to pay off the snowmobile loan which is the lowest rate and soonest to being paid off..which would save more money in the long run? I would love to pay off snowmobile, then take that full payment that I was paying for that and apply that full payment each month to another loan...and when that's paid off, take both those payments and apply to another...

[beachlovingmom]

I have just received this email to refinance: In case it helps, here it is (see phone number and code at the end).

Now is the time...
There may never be a better time than now to purchase a new or pre-owned RV or refinance your existing RV loan. Good Sam Finance Center has experienced RV associates ready to provide fast, convenient and flexible service to make the process hassle—free so you can focus on enjoying your RV.

Thinking of Purchasing...
Good Sam Finance Center offers financing for private party and dealer purchases. LEARN MORE >

Considering Refinancing...
Take advantage of the current interest rates and the potential to reduce your monthly payments. LEARN MORE >

Are you a Full-Timer?
Good Sam Finance Center offers financing for the perfect RV to call home. LEARN MORE >

Apply by April 15, 2014 to take advantage of this opportunity. To speak with one of our RV loan specialists call 1-800-444-1476 (be sure to mention priority code 820).


Questions? Call 1-800-444-1476 mention priority code 820

[JiminDenver]

When we bought we were so fixated on getting the best price, we even considered the wholesalers because they would have been a few grand cheaper after delivery.

All of the lower priced shops came up with the 12 year/ high interest loans which made no sense because we have a credit rating of over 800 each. The place we bought from gave us six options from 5 years/ 4.5% to 12 years/ 7.99%. The difference between the shortest and longest loans was that not only would we pay of the rig earlier, we would be able to buy a second trailer with the payments we would have been making over the remaining 7 years of the higher rate loan.

Even with that I came home and looked at used prices thinking what did I just do. Too bad that what we had the cash for was beat up and stunk.

A customer of mine tried to give me advice on a happy life and I am just now beginning to understand. He said

If it floats, flies or *****, RENT IT!

You have to fill in the blank.

[JJBIRISH]

One point not mentioned, and maybe the most important one of all, isn’t that one can afford the payment…
but can you can make the payments 5, 10, or 15 years from now for something that has a diminishing value to you…
something you will not be able to sell without being able to pay the depreciated loss just to get rid of it… something that even if insured and there is a total and compensable loss, the insurance check won’t be enough to satisfy the bank who will issue a demand notice for the balance…

making memories is a great idea as long as they are good memories… being able to make the payments today, means you are riding the edge of the cliff and one setback can change what memories you can make…

using credit to make your money work for you isn’t a bad thing, but that isn’t what is at play here…

the past was just a lesson, today forward only the OP can make the risk assessment compared to the benefit, the memories compared to the stress of being at the edge of the cliff, the outlook for his future, the security of his income, and his ability to cover short and long term setbacks…
each as important as being able to make the payment today… only the OP can decide what’s best for him and his family… hopefully he can gain some important tips to become better informed in his decisions… but it’s not as easy as black and white, yes or no…

[fx2tom]

Everyone is going to have their opinion on what you should do, how you should manage your finances, etc. The biggest questions is: ARE YOU COMFORTABLE WITH YOUR PAYMENT? If you are and you can make that payment every month then it only matters what your comfort is.

[Squealers]

Here is another way to look at this. Our TT is 10 years old. 2004 model. (we bought it 4 years ago, we didn't finance)

If I had bought my rig new and financed it for 12 years I would have 2 years left on my TT, and we love this thing, and know it would last as long as we wanted to keep it.

Go out and enjoy this thing!

We plan on moving to a Diesel Pusher in 5 years and sell the TT as we start our pre-retirement practice.

So enjoy, with care, you could pass this rig on to your kids.

[bid_time]

I think you hit the nail on the head biddogger. Put your money in your mattress are preaching, and the drive it like you stole aren't listening. The reality is most life is lived in the middle and those in the middle realize the other two are both wrong.