TT financing for an 04 model??
I found an 04 Cedar Creek I want to buy...shopping around trying to find financing...does anyone know of a place that finances RV's older than 8 years?
Forum Discussion
Nickthehunter writes “Coleman - people say lots of things, that doesn't make their opinion right. Just because you can pay cash doesn't mean you should. If I can earn 8% on my investments and get a loan for 4.5% which way should I go? Last year I earned almost 15% on my investments, my loan was still only 4.5%.”
I don’t think anyone was stating that you MUST use “cash”, granted I tend use “cash” for small purchases for larger purchases like NEW autos I use a loan but add additional payments the PRINCIPLE BORROWED. This lowers my overall length of loan AND how much interest I pay for that loan.
I also am not suggesting that buying "toys" is a bad thing either but there NEEDS to a a responsible fiscal balance between the two.
I payoff early then put the money which WOULD have been going to the loan for the full term into a savings account. This gives me the “cash” or down payment I use for the NEXT purchase..
How this works is say my auto payment is $400/month and I paid the loan off two years early (5yr loan). I set aside $400 EACH MONTH (I DO NOT SPEND THIS) as if I was still sending a payment to the bank. After 24 months I now have $9,600 which can be used as a down payment for another vehicle. Each year I don’t buy a new vehicle that saved money CONTINUES to build until I need to purchase the next vehicle and in some cases this money can be used for making emergency repairs to my vehicles.
I HAVE to do this, my commute is 100 miles DAILY, I easily put 20,000 miles on a vehicle every year just for my job, then add in any other driving and I am in need of replacing a vehicle every 5-6 years just due to wear out of the vehicle.
For USED autos, I cannot justify used due to needing reliable transportation.
RVs, I step away from those unless I can pay cash for, this basically means I would be buying a rather low priced USED RV (this can be SOME of the cash which I set aside from NOT PAYING LOAN INTEREST). I cannot justify buying a new RV since we only get a couple of weeks per year that we are able to use it.
The idea is using credit to YOUR advantage.
One of the many problems with Home Equity loans is the payback schedule is often a very long, long time, this is done to give you a very low payment (often the Home Equity loans use a 30 year payback schedule). It is also how MANY people have gotten over their heads.
Additionally the OP STATED that a Home Equity loan was out of the question BUT folks INSIST to PUSH Home Equity loans.
In the following examples I will show you that there IS NO ADVANTAGE to a Home Equity loan..
For comparison sake I will use $10K borrowed for all examples.
5yr 4.5% Payment (P&I)=$186.43/month, interest paid is $1,185.89
10yr 4.5% Payment (P&I)=$103.64/month, interest paid is $2,436.61
15yr4.5% Payment (P&I)=$76.50/month, interest paid is $3,769.88
30yr 4.5% Payment (P&I)=$50.67/month, interest paid is $8,240.67! :E
Now lets take a higher interest rate and see what happens..
5 yr 8% Payment (P&I)=$202.76/month, interest paid is $2,165.84
Notice that 8% for a SHORTER 5yr term is LESS interest paid than 4.5% at a 10yr term!
Now lets see what happens if you add an additional payment to the PRINCIPLE (IE the outstanding balance owed)
5yr 8% Payment(P&I)=202.76 + $50 extra towards principle, interest paid is $1,647.65 NOTE: Early payoff
5yr 8% Payment(P&I)=202.76 + $75 extra towards principle, interest paid is $1,473.22 NOTE: Early payoff
5yr 8% Payment(P&I)=202.76 + $130 extra towards principle, interest paid is $1,196.89 NOTE: Early payoff (34 Months!)
So, by taking out a higher interest rate loan and adding extra payment to the principle borrowed you ultimately pay less interest effectively lowering your interest rate. THIS is smarter than borrowing low interest long term via Home Equity loan.
Folks, there are plenty of Amortization calculators available on the ‘net. Find one that gives you the option at add additional payments then play with the numbers.
The link below is one that gives you the option for extra payments..
Amortization Calc with options
Sorry to the OP for derailing this thread :S
I don’t think anyone was stating that you MUST use “cash”, granted I tend use “cash” for small purchases for larger purchases like NEW autos I use a loan but add additional payments the PRINCIPLE BORROWED. This lowers my overall length of loan AND how much interest I pay for that loan.
I also am not suggesting that buying "toys" is a bad thing either but there NEEDS to a a responsible fiscal balance between the two.
I payoff early then put the money which WOULD have been going to the loan for the full term into a savings account. This gives me the “cash” or down payment I use for the NEXT purchase..
How this works is say my auto payment is $400/month and I paid the loan off two years early (5yr loan). I set aside $400 EACH MONTH (I DO NOT SPEND THIS) as if I was still sending a payment to the bank. After 24 months I now have $9,600 which can be used as a down payment for another vehicle. Each year I don’t buy a new vehicle that saved money CONTINUES to build until I need to purchase the next vehicle and in some cases this money can be used for making emergency repairs to my vehicles.
I HAVE to do this, my commute is 100 miles DAILY, I easily put 20,000 miles on a vehicle every year just for my job, then add in any other driving and I am in need of replacing a vehicle every 5-6 years just due to wear out of the vehicle.
For USED autos, I cannot justify used due to needing reliable transportation.
RVs, I step away from those unless I can pay cash for, this basically means I would be buying a rather low priced USED RV (this can be SOME of the cash which I set aside from NOT PAYING LOAN INTEREST). I cannot justify buying a new RV since we only get a couple of weeks per year that we are able to use it.
The idea is using credit to YOUR advantage.
One of the many problems with Home Equity loans is the payback schedule is often a very long, long time, this is done to give you a very low payment (often the Home Equity loans use a 30 year payback schedule). It is also how MANY people have gotten over their heads.
Additionally the OP STATED that a Home Equity loan was out of the question BUT folks INSIST to PUSH Home Equity loans.
In the following examples I will show you that there IS NO ADVANTAGE to a Home Equity loan..
For comparison sake I will use $10K borrowed for all examples.
5yr 4.5% Payment (P&I)=$186.43/month, interest paid is $1,185.89
10yr 4.5% Payment (P&I)=$103.64/month, interest paid is $2,436.61
15yr4.5% Payment (P&I)=$76.50/month, interest paid is $3,769.88
30yr 4.5% Payment (P&I)=$50.67/month, interest paid is $8,240.67! :E
Now lets take a higher interest rate and see what happens..
5 yr 8% Payment (P&I)=$202.76/month, interest paid is $2,165.84
Notice that 8% for a SHORTER 5yr term is LESS interest paid than 4.5% at a 10yr term!
Now lets see what happens if you add an additional payment to the PRINCIPLE (IE the outstanding balance owed)
5yr 8% Payment(P&I)=202.76 + $50 extra towards principle, interest paid is $1,647.65 NOTE: Early payoff
5yr 8% Payment(P&I)=202.76 + $75 extra towards principle, interest paid is $1,473.22 NOTE: Early payoff
5yr 8% Payment(P&I)=202.76 + $130 extra towards principle, interest paid is $1,196.89 NOTE: Early payoff (34 Months!)
So, by taking out a higher interest rate loan and adding extra payment to the principle borrowed you ultimately pay less interest effectively lowering your interest rate. THIS is smarter than borrowing low interest long term via Home Equity loan.
Folks, there are plenty of Amortization calculators available on the ‘net. Find one that gives you the option at add additional payments then play with the numbers.
The link below is one that gives you the option for extra payments..
Amortization Calc with options
Sorry to the OP for derailing this thread :S
