Some of you may be living in an RV from 1998, the payments looooong since paid off. But some of you may be living in a brand-new 2020 trailer, with many years of payments ahead. Perhaps some of you are still paying off that RV from 1998, and others of you paid off the new 2020 trailer already. We’re all in different positions here, and that’s okay.
Will you tell us in the poll below if you’re still making payments on your RV or if you’ve already paid it off? If you’ve got a strong opinion on the subject too, please leave a comment. We’d appreciate it.
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This is our third fifth wheel and we have been fortunate enough to pay cash for all three. Of course it became easier after the first one with the trade factored in. I can’t imagine being saddled with payments for years on end.
Steve
I answered making payments even though I have a clear title, we took a home equity loan at a much lower interest rate to pay off the bank. Plus we can do anything financially with the motorhome as long as the interest payment is made and it is tax deductible.
As I understand it with a home equity loan it is only tax deductible if you use the money for your home (repairs, etc. ) that serves as collateral. In other words, you can’t deduct that amount you use for your RV. We used some of our HE to finance a van, but we cannot deduct that interest on our taxes. Only what applies to our S&B home. Better check on that with your bank, the IRS, or financial advisor.
I believe the IRS considers an RV a second home and allows you to deduct interest payments. At least it used to; I did that for several years, though not since they raised the standard deduction.
Was looking to purchase tt,decided on class b,sold my Chevy Suburban to help pay for RV,was a private sale.
I checked payments. I negotiated a good interest rate and decided to keep my money in other places. I make double payments or more every month and will pay it off soon.
It would be interesting to see what the low and higher payments are.
making payments. it was cheaper to borrow than cash out invested money, I make double payments so will be done before term
Five years ago we bought our first RV, an old motorhome, for $400. A few weeks and a few hundred dollars later we were on the road. Still enjoying taking excursions in it, albeit local ones this year.
I started my ‘RV Fund’ in 2009 after going to RV Show in Hershey & was intent on getting a RV by the time I retired (RN) in July 2019. Bought my motorhome (2019 FR3) at Hershey Show. The dealer offered $$ if I got a loan; had to keep it for minimum of 6 months. My first payment was 90% of the total I owed & the remainder over the next 5 months. Total interest paid was about $300. RV debt free — now I’m waiting for vacations.
You did good, Denise! It took me a long time to understand HOW to negotiate at car dealers and why. Understand that they make a good chunk of their money on financing, not the sale. Note how you CONSTANTLY get told a monthly payment, not length and not total sum??? What you SHOULD do is negotiate AS IF you’re going to take a massive and stupid loan, and GET THE PRICE IN WRITING. Negotiate hard until they are JUST about to leave (and you should if they won’t budge! Other dealers will and they can ALL order ANY model.) With best price in hand, NEXT knock off all the “added services” and crap they will “automatically” add on — no $4K fabric treatments that cost $20 in ScotchGard; no bogus warrantees that never pay for themselves, no “special wax” or other goofiness. Tag/Title/Tax are usually 1/4 of what dealer’s charge as a “convenience fee for running to the DMV.” NOW, when you’ve negotiated every possible discount and removed all the inflated crap services, PAY CASH…
I’m wordy and got cut off… :-< To summarize, remember that the dealer is NOT your friend saving you money — just the opposite if he’s doing his job. Remember you can lie just as much as they do until it’s in writing, so act gullible and receptive to all the special claybar wax and “extra super good” bedliners and whatever else they suggest. They can even write that crap into the quote as long as they separate it line-item from the actual vehicle. How much can this really affect the sale? I bought a *loaded* 2500 truck for the price of a stripped 1500 — because I let them quote about 20K of “extras” to shift their offer down on the actual truck, and then crossed crap off at the last second. If you don’t/can’t pay cash and want to use their financing as another bargaining point, at least make sure you can pay off their financing early without penalty — my own credit union financing was several points lower than their supposed “very best rate!!!” and gladly refi’d the loan.
We’ve had three rvs, all paid with cash. The only way I’d finance is zero percent but we all know that’s not going to happen with an rv.
The advantage to buying new – you don’t go upside down on payments, no interest to pay, and no payments hanging over your head.
no payments for anything (no debt) is the way to go. we used to be normal…car payments, rv payments, etc. ditched it all years ago. life is good.
7 year loan on my RV. 5 to go.
We financed through our local credit union at 3.9% for 7 years. Our plan is to have it paid off 2 years early. Investments are earning more than 3.9%, and I would have to pay taxes on a withdrawal from my IRA. YMMV
We work in our RV, lots of deductions to help with payments…
We make payments on the RV. Everything else is paid for – house, cars, etc. – no other debt. Investments pay more than loan charges. Why would we pay cash?
Paying payments on the motorhome and storage every month due to the pandemic this year and last year due to wifes health, luckily no house payments as that’s paid off
Pre retirement I financed a portion of my MH, figuring that I could still sell it for more than I owed If the worst happened. That way I kept my investment money growing and paid off MH in 3 years before retirement.
Post retirement I was able to pay cash for a Used Road Trek and not disturb my investment money or pay penalties. It depends on your circumstances. My theory is don’t drive more than you can get out of if you have to.
I have only a year left.👍👍
Put half down and got a very low interest loan. A year later we had it paid off. It is a good feeling.
My husband and I trade our RV in every two years right now we live in a brand new 2019 fifth wheel but next month we are considering trading for a motorhome it will be our last as health issues are here
So we will always be in debt but the good thing it will be passed on to the children 😁
Been working hard to pay off my Lil’ Miss. Happy to say – I did it! I’ve just got my pink slip!! A 15 year loan knocked out in five and a half years. Thanks Chuck for this! Your articles about financing made a difference!!!!
I tell everyone I’m just renting my class a from the bank