Travel Trailer Buying/Financing Questions
Hello all, this is my first post here. I’ve been lurking here a while looking for info on campers. I’m looking to buy a TT for the 2020 camping season and I’m trying to plan my finances accordingly....
Forum Discussion
Ralph Cramden wrote:1500 wrote:
You want to not be poor? Don't spend 40k on a 20k item just because you don't have the 20k cash up front.
I pay cash for everything (house excluded), not because I make a lot, but because I don't.
not paying interest gets you more trips.
LOL, To finance $20K and pay back $40K that would be 31.6% interest. Are your financing with a credit card or a payday loan? (60 month term). Or are you talking about financing a $20K item for 120 or 144 months or something? You have to be a financial idiot to even consider it. A $300K class A is one thing, a $20K trailer another.
How about financing the $20K @ 3.9% for 60 months, total cost $22,046.00
Take the $20,000 cash and invest it for 5 years and turn it into roughly $27K (6% return per year), and very possibly a good bit more if you play your cards right, without getting too aggressive, for a 5K min profit?
LOL you are arguing about clearly made up exaggerated numbers. Then you got so distracted by those made up numbers that you didn't realize the point or did and made up a little strawman anyway.
Why yes if you want more money down the road you should invest it. Anyone can say "oh you can get 6% return", but most people don't actually know how to get that type of return. But that is just picking apart a strawman that can be ignored anyway.
The point is that you don't have 20k, so again for you, you don't have 20k to invest. Instead you take out a loan so that you can make payments. And as you didn't have the 20k to start, you either pay off the loan (hopefully early), or you sell it. With RV's you hope you can sell it at a price point just to get yourself out from under the loan. The average American has 38K in personal debt (not including home loans). That is what i was talking about.
So either people can continue to take out more loans and pay more interest, making what little money they have even thinner, or they can learn to live more within their means (or god forbid save for something, and yes save can mean invest) and actually stretch that small income farther.
But Like I already said, people can do what ever they want with their money.
