Gary RV_Wizard
Site Team
LOL. It's always fun to watch & listen after somebody's baby gets called "ugly". ;D
SeilerBird said:The whole point he misses is that RVs may be expensive but it can be cheaper than driving and motelling it.
I disagree. For me it's a way to stay out of debt. I feel a lot of stress when I owe money. I've never even had a car payment. I'm not suggesting that everyone needs to live like that, there's obviously financially responsible people all over the place, but for ME, I live MY life that if I can't buy it, I skip it, even if I could easily afford to finance it.WILDEBILL308 said:The old saying "If you can't pay cash, you can't afford it."
is nothing more than a salv to those who realey couldn't afford something even if they financed it.
Bill
RVMommaTo6 said:I disagree. For me it's a way to stay out of debt. I feel a lot of stress when I owe money. I've never even had a car payment. I'm not suggesting that everyone needs to live like that, there's obviously financially responsible people all over the place, but for ME, I live MY life that if I can't buy it, I skip it, even if I could easily afford to finance it.
WILDEBILL308 said:Well it is sad that Amanda and Richard don't understand what we tried to explain. :
Bill
go re read what Lou Schneider and I posted. Now think about this. I just bought a used coach I could have paid cash $150,000.00 but I financed it. My interest is under 5%. I have the the resources to make the monthly payments without touching any of my reserve AKA the $150,000 and that is invested at over 7%. Now I can deduct the interest from my income tax and next year and I can deduct (in Texas) the sales tax.garyb1st said:Guess I missed it as well. ???
We always run the same calculations Bill does in deciding whether to pay cash or to finance. We have a mortgage though we have plenty of money in current tax deferred investments to cover the price of the house. Between investment return and the tax penalties of removing a chunk of money, it made lots of sense to do that. However, right now investments are not making basically anything. We have some cash coming from selling parts of the old family farm, and we decided to pay off the house instead of investing it. Even though the house is at less than 4%, it is more than I would be making if we invested the money. This is an example that the calculation changes all the time, and you need to be open to changing decisions if the conditions change. We didn?t have enough of a loan to even partially get a tax advantage for it. And I do understand Amanda?s and Richard?s point of view too. Not having any debt provides you margin to handle bad things that might come your way, particularly if you are living on an income stream that is variable.WILDEBILL308 said:go re read what Lou Schneider and I posted. Now think about this. I just bought a used coach I could have paid cash $150,000.00 but I financed it. My interest is under 5%. I have the the resources to make the monthly payments without touching any of my reserve AKA the $150,000 and that is invested at over 7%. Now I can deduct the interest from my income tax and next year and I can deduct (in Texas) the sales tax.
Where is the benefit of paying cash?
What Amanda and Richard were talking about "If something happens to the economy" Well if you paid cash you don't have that nest egg to fall back on.
So what is the benefit of paying cash especially on a depreciating asset.
Bill