Good Sam Club Open Roads Forum: Fed Cuts Rates: Will RV Rates Follow?
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 > Fed Cuts Rates: Will RV Rates Follow?

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babock

Los Angeles, CA

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Posted: 04/07/20 12:28am Link  |  Quote  |  Print  |  Notify Moderator

pnichols wrote:

If a situation should arise such that one could no longer continue paying off ANY loan, then I guess it's better to have the depreciating assest repossessed along with one's credit ruined - than to have one's home repossessed along with one's credit ruined. [emoticon]
Exactly!

goducks10

There

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Posted: 04/07/20 08:57am Link  |  Quote  |  Print  |  Notify Moderator

pnichols wrote:

babock wrote:

Financing a depreciating asset with your home is just a bad idea.


If one must finance a depreciating asset - and if one would normally eventually pay off the loan that they used to buy the depreciating asset, anyway - then financing the loan at the lowest obtainable interest rate is always a good idea.

There is one possible exception to the above almost best practice: If a situation should arise such that one could no longer continue paying off ANY loan, then I guess it's better to have the depreciating assest repossessed along with one's credit ruined - than to have one's home repossessed along with one's credit ruined. [emoticon]


From the OP's post it sounds like he's paying 1/2 cash and financing the rest. On default he'd be able to unload the RV by either selling or repossession at which time he's owe less than its value.
I get your point but the OP's situation seems safe to me. I agree that if I owed a fair amount on my house but had just enough equity to cover an RV loan then that would be way too risky.

DallasSteve

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Posted: 04/07/20 09:16am Link  |  Quote  |  Print  |  Notify Moderator

Wow, this thread has had quite a run. I bought the motorhome. I put down over half the purchase price. I could've paid cash, but I wanted a "poison pill" to protect a little bit of my net worth. Why? To protect it against any potential creditors and because I can afford to do this.

I would lease a new motorhome, if I could, but I didn't find anybody leasing new RVs. I saw an article where Suze Orman (the former waitress and would be financial advisor) tells people to never lease a car. I guess she hasn't heard that old rule of investments: "Buy what appreciates, rent what depreciates." I don't take advice from Suze.





philh

Belleville MI

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Posted: 04/07/20 07:03pm Link  |  Quote  |  Print  |  Notify Moderator

We're taking a different approach. I can pay cash for a new park model, instead I'm going max loan. That cash will get invested into the market at some future date

DallasSteve

Texas

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Posted: 04/07/20 07:12pm Link  |  Quote  |  Print  |  Notify Moderator

Funny this should appear again. Today the business manager who worked up my deal called me 3 weeks after the sale. They are still futzing around with the paperwork. The credit union that gave me the loan is complaining because I have $2,000 deductible on my insurance and they want me to reduce it to $1,000. I basically told them to go to hell. I said if they won't accept my $2,000 deductible I'll send the dealer a cashier's check for the balance and the credit union can go look for someone else who will pay 5.49%

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