If a person purchases a new diesel motorhome what discount is necessary to make sure a person is not upside down if the unit is financed for 20 years. Is that even possible? based on the average depreciation?
you should maybe think about owning the same rv for 20yrs most people change there house in that time .and rv,s don,t go up in value ,they loose big bucks the day you buy it. figure your payment over 20yrs that rv is in 400k range
If U financed 200K for 20 years at 6 % you at year 2020 this time(oct)You will still OWE $137,000.00.The motorhome will be worth(estimate) 75K and u will have paid out
$94,000 interest and 63,000 in principal.and thats after only 9 years
To many variables....what is the interest rate? What is the Market looking like...will an RV have better value? What is the price of the MH?
What is the value of the MH? (what you would get for it, if you sold it)....and of course, what kind of shape will it be in, in 20 year?
I would guess that it's not going to matter if you have a Diesel or a gasser.....a MH or a TT.....when you owe more than you will get if you sell it, you're upside down. Financing will be a big part of what puts you in that upside down position, because you are paying the interest for the most part, so unless you put quite a bit of money down, you aren't paying the RV off, just paying the finance company.
Bill & Claudia / DD Jenn / DS Chris / GS MJ Dogs: Sophie, Abby, Brandy, Kahlie, Annie, Maggie, Tugger & Beau RIP: Cookie, Foxy & Gidget @ Rainbow Bridge.
2000 Winnebago "Minnie" 31C, Ford V-10
Purchased April 2008 FMCA# F407293 The Pets
had a talk with my RV sales critter just last week about this. he told me that someone with very good credit can get a 20-year loan at about 5%.
assuming a $200,000 purchase with zero down payment (not gonna happen but wanted to figure a worst case scenario), a 5% loan for 20-years with a $200,000 starting balance results in a total payback of $316,778 and change and a monthly payment of $1320.
in 5-years your loan balance would be approx $165,600
- 10 years: $123,130
- 15 years: $68,630
so...is your MH gonna be worth as much as your loan balances at those points in time? depends on condition of the MH, market condition, etc. to be certain you stay right side up for the entire 20-years you'd need a pretty substantial down payment.