We know that many readers of RVtravel.com paid cash for their RVs. But we know that many others, maybe even most, financed their purchases.
These days, RV financing terms may stretch 10, 15 or even 20 years — the last the same as a home mortgage. The difference, of course, is that in most cases, a traditional home will have appreciated in value, even doubled or tripled in value, while the RV will almost certainly have depreciated to where it is worth very little or even next to nothing.
What about you? Are you making monthly payments on your RV? If so, how much is the monthly payment? Please feel free to leave a comment. Please do not respond if you are currently NOT making payments.
And, remember, as always, if your internet connection is slow, it could take a bit for the poll to load. So stand by … it will be along.
high monthly for a short 6 year payoff and make sure we are never upside down on the RV net worth.
Paid for.
Also paid for – as was the last on and the one before that. Go back over 30 years and I put down 50% and a short term loan to pay off the balance for the hybrid as well as the pop up tent camper prior to that. We camped in them 2 weeks a year plus the occasional weekend. Also tent camped in primitive camp sites. Until a bear and cub tried to break into our tent one night. We now live 8 months out of the year in our good used 5th wheel (that we paid cash for). No more tents.
Paid cash. Making payments is for the birds! You are wasting money on a RV that will be sitting most of the time.
We went from a cash-purchase 2021 to a bigger & financed 2023. We decided against hitting the savings because of current economic uncertainties and instead are doubling the payments.
Paid cash for the rv we have now.. No credit card balances…
Our RV is paid off. We financed it on a 15 year loan and paid it off in 3 years. Having no payments is the only way to Full Time RV!
I opted for a 20 yr loan to keep the payment low if I needed to make the minimum payment but paid the total loan in 3 yrs, free and clear and lovin’ it.
For the $2000.00 a month, $24,000 a year at present interest rates that’s a very steep cost, hope your able to sustain other costs in month to month living.
Moved. Accidently in reply instead of new post.
If you can’t answer if you’re not making payments, one can’t see the poll answers, which might be interesting.
Hit the “See Results” clicker at the bottom of the graph.
Bought used from owner and paid cash.
Interesting! They clearly ask that you do NOT answer if you do not make payments; guess that doesn’t apply to commenting(?).
Our Class B monthly payment is less than lots of folks pay monthly on their fancy new cars and it serves as the family second vehicle (when the wife wants the car). All in all, a pretty good deal in my mind.
We make payments on the 5th wheel we bought in 2020. We have no other debts. The plan was to sell the paid off house and full time by 2022. We were going to pay off the RV and bankroll the rest for later when it would be time to hang up the keys. Life has a way of upending your plans and in our case life decided that we would not be full timing for the foreseeable future if ever. No big deal, we still RV when life allows it. It irks me to make payments on something that depreciates to zero but we love our 5th wheel. So payments we will make. Maybe life will change its mind and we can forge ahead with our own plans.
Paid cash for a high top extended van and built it myself.
Insurance, license, fuel, and maintenance are my only expenses, which keeps what is a hobby for me, affordable and guilt free (no guilt if it doesn’t leave the driveway for a while).
We participated in the bigger, better, newer rat race years ago, and learned that cost does not equate to satisfaction and enjoyment (in fact it was inversely proportional in our case). The most expensive unit we have owned, was the one we used the least, and lost the most money on, at time of sale (class A MH).
But to each their own. Whatever makes you happy, and you can afford; GO FOR IT!
Technically, we are NOT making RV payments, nor do we have them. However, from a practical standpoint, we ARE making them. We took out a home equity line of credit (aka, HELOC) to finance the part of last summer’s purchase of DP #2 not covered by the trade-in of DP #1. I think our payments are ~$1200/month, but we are paying it down faster. I expect that we’ll be free-and-clear of payments in about 4 or 5 years. It will depend on how our adjustable HELOC rate changes relative to the rate of return on our investments.
PS., Did you intentionally omit the end points of the categories when creating the categories? Formally what we are paying is an end-point and thereby absent from the choices. 😉 😎 Cheers, thank you, and safe travels!
We just paid ours off a couple months ago. We were paying just under $500/month. But, I was usually doubling that so we could pay it off sooner.
Just a note that loans may not always be the wrong choice vs paying cash, as may be insinuated by some comments. It depends on many financial factors including return on current assets you might use and the potential income and tax implications, especially if withdrawing from non-taxable retirement accounts like traditional IRAs or 401K accounts. Withdrawing large sums from these accounts may have impacts to SS, Medicare, as well as large marginal income tax rates. Each individual circumstance will be different. Just understand all impacts before making the choice if what is right for you.
Agree, consult your financial advisor. They can explain different scenarios and what would be in your best interest.
In 2019 we went to the Hershey show to just look around. We already had a gas unit but wanted to upgrade to a larger diesel pusher. The 2020 model we were interested in was out in the demo lot and upon entering it they had a large sign with the MSRP on it. My wife took a picture of it and we left the show and drove home (20 minute drive) I knew right away that it was cheaper than I could get a left over 2018. We returned the next day and negotiated a washer and dryer and other items, when they wrote up the sales agreement I pointed out that they had the wrong price, after some haggling and threatening to report a switch and bait they agreed if I took a 20 year loan with the agreement I would pay it off if they screwed me on warranty repair which I knew they would, bottom line, they lost the kick back from the bank.
Pretty smart I’d say…
Payments on an RV? Doesn’t make sense to me. I’ve had two C Class rigs over the years and paid cash for both. By the way, this pole makes no sense if not including cash buyers.
Only took out a two year loan and paid it off in 18 months. No payments since early 2011.
Rolled the purchase into a refi on our mortgage. 8 year loan that I make extra payments on so it will be paid off in 5 yrs at a low interest rate. We have the cash in retirement funds to pay it off anytime but make more interest on the savings then we pay on the loan and if I cashed it in would be paying higher taxes on the big withdrawal. Totally debt free in 5 yrs.
Another poll suggestion would be to ask: 1. Making payments. 2. Paid off. 3. Paid cash.
Interesting discussion along with all the assumptions that paying cash is the only way to go. That is simply not true for everyone. Some have low enough interest rates to make it just plain stupid to pull money out of investments that pay more just to be able to say they paid cash. Some of our friends bought a large DP with absolutely no intention of ever paying it off. They made sure they had a large enough down payment and payments that fit their budget. They aren’t going to be able to RV for many years and prefer to keep their liquidity in a safe account for the few years they will be making the RV payments. Some others do it just for the interest deduction on their itemized tax return. It helps them more than pulling the money out of their accounts to pay their coach in full. Just because paying cash works best for some, doesn’t mean it does for all. Lots of other factors could apply, especially if you are comparing buying a $10,000 camper to buying a $1,000,000 DP.
Exactly correct, we always check with our financial guy before a purchase, he can usually make us more money than finance charges.
Exactly!
Well, I get a lot of the comments about paying cash. Some folks aren’t that fortunate to be able to just pay cash. For us we financed a 5th wheel in 2013 for 8 years we still own it. Still love it I do all the maintenance I am lucky and blessed I have that skill set. Long story short if we would not have financed we couldn’t enjoy the last 10 year of meeting wonderful people while camping. Financing is right for some including us but not for all. Do not regret our decision at all. God bless our campers and families.
We bought a new 5th wheel this year because prices were coming down, while interest rates were going up. We were able to put down a good down payment (cash and trade-in). Financing the balance the best interest rate was 7.24% for 15 years. We accepted it, but don’t pay the required payment of $317/ month. We pay $600.00/month – that we’re comfortable with and ran the numbers.. it will be paid off in 6 1/2 years.