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Optimistic Paranoid

East Nowhere NY

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Posted: 10/02/18 12:59pm Link  |  Quote  |  Print  |  Notify Moderator

Okichewy1 wrote:

Yeah, plan is to purchase with a 20 year loan and payoff within 12 years.


Have you actually talked to a bank or credit union about this?

FWIW, the credit union I belong to will only give a loan for an RV for 10 years (120 months) MAX, and will only finance up to 90% of the purchase price up to $60,000 for a NEW RV and up to 80% of the purchase price up to $50,000 for a USED one.

This, of course, is using the RV as collateral.

donn0128

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Posted: 10/02/18 01:16pm Link  |  Quote  |  Print  |  Notify Moderator

Okichewy1 wrote:

thanks for the information. It helps a lot with search process. Yeah, plan is to purchase with a 20 year loan and payoff within 12 years.


Big, BIG mistake. With a DEPRECIATING asset it will mean you will absolutely up side down for at least 12 years. Maybe more. At the end of 5 years you could still owe almost what you paid for it, and it could only be worth maybe 50%.
Unless you like throwing your money away,or have a lot of disposable cash look again at value. You pay 200K for a new MH, 5 years down the road you sell it for a hundred K. Can you absorb that much of a loss?


Don,Lorri,and Charlie Bear 2016
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Okichewy1

Kimberly, Id

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Posted: 10/02/18 01:16pm Link  |  Quote  |  Print  |  Notify Moderator

Optimistic Paranoid wrote:

Okichewy1 wrote:

Yeah, plan is to purchase with a 20 year loan and payoff within 12 years.


Have you actually talked to a bank or credit union about this?

FWIW, the credit union I belong to will only give a loan for an RV for 10 years (120 months) MAX, and will only finance up to 90% of the purchase price up to $60,000 for a NEW RV and up to 80% of the purchase price up to $50,000 for a USED one.

This, of course, is using the RV as collateral.


Not yet, this was talking with a couple dealers when we were window shopping to see if there was any models we liked. The dealers around where we live use the same banks/CU's we already have accounts with. So just assumed 20 years would be good, also, I understand it depends on the amount financed will dictate the years financed. My plan was to budget 1200.00/month and hopefully purchase something with a 700-800/month payment, then dump the extra up to 1200 into the principle of the loan. The CU's and banks I use have loans up to 20 years for RV's.

Okichewy1

Kimberly, Id

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Posted: 10/02/18 01:22pm Link  |  Quote  |  Print  |  Notify Moderator

donn0128 wrote:

Okichewy1 wrote:

thanks for the information. It helps a lot with search process. Yeah, plan is to purchase with a 20 year loan and payoff within 12 years.


Big, BIG mistake. With a DEPRECIATING asset it will mean you will absolutely up side down for at least 12 years. Maybe more. At the end of 5 years you could still owe almost what you paid for it, and it could only be worth maybe 50%.
Unless you like throwing your money away,or have a lot of disposable cash look again at value. You pay 200K for a new MH, 5 years down the road you sell it for a hundred K. Can you absorb that much of a loss?


This is one of the big reasons I came on this forum, to gather information about MH's. I at least have 3 more years before we even purchase, but want to make sure we are doing the right thing. Me personally, I wanted to purchase a 2nd home on The Big Island, HI since I have found some for less than 200k. But the wife wants an RV.

So looking at RV dealer sites, they show the MSRP as say 200k, but sale price is 150k, then I emailed them and they say their online deal is 129k for a new 2018 model. If RV depreciation from the MSRP or the sale price? I am a pretty good negotiator when it comes to auto's and my boat. Didn't really need to negotiate when I bought my TT except the dealer dropping 1000 off the price to drive 6 hours to pick it up. There is so much to research in purchasing a MH I have found out.

donn0128

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Posted: 10/02/18 02:14pm Link  |  Quote  |  Print  |  Notify Moderator

Be real careful when looking at "MSRP" numbers. There all a joke. MSRP is whst a dealer wants to say it is. If there willing to sell a MH for 129K then it likely has a realistic market value around 135K. RV trader is one place to search out realistic selling prices. Another is PPL motor homes out of AZ.
Instead of buying a new MH if I were in that market I would be looking for something like a Monaco, Country Coach, or the like. At least you would get a quality coach at a price that could make things very afordable.

ksg5000

Oregon

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Posted: 10/02/18 02:20pm Link  |  Quote  |  Print  |  Notify Moderator

Okichewy1 wrote:

Yeah, when I bought my brand new 2012 Jayco TT, we paid 13,500 out the door at a dealer, 2 years later sold it for 12,000 to a couple. Thought it was a good investment for the 2 years.


You made out well ... but that is clearly an exception and you won't find many with similar results. Likely as not your rig will lose 20+ percent when you drive it off the lot and continue to decline at significant rate for another 5+ years. As implied in my other comment - many would argue you should never finance a rig ... and more would agree that financing a rig when your retired is even worse. Who wants to die unexpectedly and leave their spouse with rig that is underwater? I don't want to sound preachy .. but financing a rig in retirement is a lousy idea. Your RV will depreciate your Big Island house will appreciate.


Kevin

Optimistic Paranoid

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Posted: 10/02/18 02:30pm Link  |  Quote  |  Print  |  Notify Moderator

Okichewy1 wrote:

I at least have 3 more years before we even purchase, but want to make sure we are doing the right thing. Me personally, I wanted to purchase a 2nd home on The Big Island, HI since I have found some for less than 200k. But the wife wants an RV.


Any way you could swing buying the home in Hawaii and turning it into a rental property? Done right, this would give you an APPRECIATING property to offset the depreciating motor home, and one that the rent could cover the mortgage and property tax costs. Maybe you could rent it to a military officer assigned to Hawaii, I would assume they would be a better class of renters, which is the one big problem with being a landlord.

Understand that you need an exit strategy. Your motor home will be depreciating, and sooner or later you will either get tired of being on the road, or you or your wife will get too old or ill to continue living in a motor home.

You've got time. Was I you, I would be exploring something like this with a certified financial planner to figure out all the angles.

Okichewy1

Kimberly, Id

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Posted: 10/02/18 03:22pm Link  |  Quote  |  Print  |  Notify Moderator

Optimistic Paranoid wrote:

Okichewy1 wrote:

I at least have 3 more years before we even purchase, but want to make sure we are doing the right thing. Me personally, I wanted to purchase a 2nd home on The Big Island, HI since I have found some for less than 200k. But the wife wants an RV.


Any way you could swing buying the home in Hawaii and turning it into a rental property? Done right, this would give you an APPRECIATING property to offset the depreciating motor home, and one that the rent could cover the mortgage and property tax costs. Maybe you could rent it to a military officer assigned to Hawaii, I would assume they would be a better class of renters, which is the one big problem with being a landlord.

Understand that you need an exit strategy. Your motor home will be depreciating, and sooner or later you will either get tired of being on the road, or you or your wife will get too old or ill to continue living in a motor home.

You've got time. Was I you, I would be exploring something like this with a certified financial planner to figure out all the angles.


Will get with my financial planner and see what they say. Thanks for the information.

A Good Cigar

Avondale, AZ

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Posted: 10/02/18 03:59pm Link  |  Quote  |  Print  |  Notify Moderator

Okichewy1 wrote:

Little about myself. Married with 2 young adult children in college and 2 large dogs (75 and 90lbs). Live in southern Idaho but have family in Michigan, Georgia, Alabama and Florida. I am 46 y/o and wife is 43. I retired from the Marines and currently work for the US Forest Service. Have about 14 years till I plan on retiring at age 60. We are looking to purchase an RV in 2021 when we have our car, truck, boat and home heating system paid off. I already have budgeted about 1200.00 max a month for the RV loan payment, 100.00/month for storage and then have a couple quotes for insurance so have that money budgeted in. We initially will be using this for random vacations due to working still, but would like to have something paid off prior to my retirement. We have looked at Class A and Class C's and think were hooked on the Class A's. Any pointers for a new couple looking into these would help. Sorry this is so long.

Thanks,
Ken


Ken, I am also 46 & working on eliminating debt so I can retire at 60. Since your previous RV experience is with a TT, personally I'd suggest a way lower budget for your first motorhome! Nobody gets it right the first time, and you're in the catbird seat right now since you plan on being debt-free in 3 years. My only debt in 2015 was my mortgage, and I wanted to move up to a Class A from my older Class C. I researched for about a year, and set a limit of just $25000, which put me in mid-level late 90's or early 00's gassers with at least one slide. I picked up a 2000 Itasca for right at $25K, including a 3 year warranty for peace of mind, and I put 10K down. I paid that loan off in 2 years for the credit rating boost, but the important thing is I got a fairly modern RV, for a quarter of the new price that will easily last me 10 years while I continue to save money and shop for the "retirement" RV. A 2000 may be older than you'd like, but the gist is to pick up something cheaper to get your feet wet, pay it off a LOT faster, and spend a few years saving so you can buy the retirement RV in CASH! Sorry to be so long-winded, but seeing you say finance a twenty year loan made me cringe!!! Let us know what you decide!


2000 Itasca Suncruiser 35U

Jayco-noslide

Galesburg,Il., USA

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Posted: 10/02/18 06:13pm Link  |  Quote  |  Print  |  Notify Moderator

Have you considered going used to bring the price way down and attempting to pay cash. Any new RV really depreciates and isn't any better than one of good quality and well cared for 3 to 5 years old. We bought a 30 ft. Class C which was 10 years old at the time and it had depreciated from around $75000 to $23000(what we paid) in that 10 years and we still have it. We are debt free and will only buy a car or RV cash. Probably going way too far in advice giving but I wish you the best and you will enjoy whatever you get.


Jayco-noslide

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