Finance questions

[Timtimtim]

Hello all new here!

I?m looking to purchase my first RV soon and have a couple questions on the financing. We are looking to roll the sales tax into the loan of our trailer. I have another utility trailer that I can sell to cover the taxes but it might take a while to sell that trailer. When I finally sell the trailer can we throw that money towards the loan and have it bring the monthly payment down? I guess the question is has anybody put more towards their loan in one month and seen a monthly payment go down? Or does it stay the same and you just  are now  closer to paying the trailer off.

 

[Willandgiselarv]

No it won't bring the monthly payment down but will apply to the loan balance.
To change monthly payments you can refinance the loan and apply the proceeds to the balance.

 

[Timtimtim]

Thank you so much for that advice, I appreciate it!

 

[SpencerPJ]

Although hats off, RV camping is a good time.  Been doing the weekend / short trip thing for many years.  My advise, find a used one, get a loan on that.  The new ones, value oriented, well.. they are not like the used to be.  Build quality is fair, at best. You seem to be counting your pennies closely, and the truth is, Camping is a slightly expensive hobby, so if you start used, you can actually afford to use it. 

 

[KandT]

Maybe not true with new but I always figure 10% extra to get started AFTER you buy the RV. 

 

[grashley]

Maybe not true with new but I always figure 10% extra to get started AFTER you buy the RV.

Probably true with new as well.  Need to upgrade some stuff, plus still need other stuff like chairs, travel grill, EMS, hitch, change bay locks...

 

[Gizmo100]

Maybe not true with new but I always figure 10% extra to get started AFTER you buy the RV.

Probably true with new as well.  Need to upgrade some stuff, plus still need other stuff like chairs, travel grill, EMS, hitch, change bay locks...

This very true..I would say we exceeded the 10% by quite a bit. But then we bought a lightly used TT.

 

[Utclmjmpr]

Ask yourself,, where are all these "slightly used" RVs coming from??that every one is looking for..Gotta tell you something.>>>Dan

 

[timjet]

If you're going to finance any RV, new or used, consider the money you put down and the monthly payments gone forever. RV's depreciate so fast that within 2 years you likely will owe more on the RV than it's worth. Nothing wrong with that as long as you understand what you're getting into.

I purchased a 10 yo motorhome and financed a third of it. We were in the unique situation that we had just sold our boat and we used the proceeds from that sale along with the loan to purchase the motorhome. If I had taken money out of savings instead of taking the loan that money would have counted as income and put me in a higher tax bracket along with increasing my monthly medicare payments. My hope is when we sell the motor home we get enough to pay off the loan.

Each person's financial situation is unique, just know what you're getting into.

 

[KandT]

If you're going to finance any RV, new or used, consider the money you put down and the monthly payments gone forever. RV's depreciate so fast that within 2 years you likely will owe more on the RV than it's worth. Nothing wrong with that as long as you understand what you're getting into.

I purchased a 10 yo motorhome and financed a third of it. We were in the unique situation that we had just sold our boat and we used the proceeds from that sale along with the loan to purchase the motorhome. If I had taken money out of savings instead of taking the loan that money would have counted as income and put me in a higher tax bracket along with increasing my monthly medicare payments. My hope is when we sell the motor home we get enough to pay off the loan.

Each person's financial situation is unique, just know what you're getting into.

I couldn't agree more.  I was just talking to someone who said they couldn't afford to sell their FW.  Sounds counter intuitive right??  It seems they owed so much more than it was worth that they couldn't afford to sell it but they could afford to squeak by making monthly payments.  They had to wait until they got closer to paying it off until they could dump it. I see that too when I go to buy a used one.  RV's are one thing (like boats) that you really want to make sure you have a nice cushion on.  Unexpected costs, insurance, fuel, CG fees highway tolls all add up. 

Yes they are a ton of fun but not if you are sweating every time you pull into the diesel station and the bill is $300 or more.

 

[scottydl]

Best thing you can do to avoid all these issues, is buy used and pay cash. That's what I did with both of my RV's and I haven't had a single regret or single concern of interest rate, payoff, or  depreciation. If you have enough in your budget to make payments, you have enough to pay cash... just gotta make those "payments" to yourself for awhile to save up the cash. Throw extra money in there like bonuses, tax returns, etc. and you can put together a nice chunk of change for these kind of purchases.

 

[KandT]

Best thing you can do to avoid all these issues, is buy used and pay cash. That's what I did with both of my RV's and I haven't had a single regret or single concern interest, payoff, or  depreciation. If you have enough in your budget to make payments, you have enough to pay cash... just gotta make those "payments" to yourself for awhile to save up the cash. Throw extra money in there like bonuses, tax returns, etc. and you can put together a nice chunk of change for these kind of purchases.

+1 on this!  Heck even get a side hustle going to save up the cash.  If you want it bad enough to work your rump off for it then you will have it in no time.  And trust me, that "perfect one" that you just can't let go has another one right behind it and one behind that one.  No use in using that as a reason to go into debt!