JimInMich
Mi
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Joined: 06/21/2003
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All this talk about spending cash...I know I sure didnt have $28,000 to freely spend on my trailer. I financed it for 12 years. Once I have my new truck paid for, I'll apply the truck money towards the TT to help pay it off faster.
If I waited until I could pay cash, I would have missed out on a lot of enjoyment over the last few years. Cripes, it's only money. Having fun in my life is worth more to me.
If you can afford cash, do it. If you cant, buy what you can afford to pay each month without causing you stress.
11 Chevy Silverado Ext.Cab Z-71 4x4, 5.3 v8, 3:43 w/locker, Factory tow package, Equal-I-zer 1200#, Curt Class V Receiver
12 Cougar XLite 27RLS ( 960# Tongue, 6740# Gross as loaded)
Just the Wife and I.
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winkyb
Florida
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Joined: 02/02/2008
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JimInMich wrote:All this talk about spending cash...I know I sure didnt have $28,000 to freely spend on my trailer. I financed it for 12 years. Once I have my new truck paid for, I'll apply the truck money towards the TT to help pay it off faster.
If I waited until I could pay cash, I would have missed out on a lot of enjoyment over the last few years. Cripes, it's only money. Having fun in my life is worth more to me.
If you can afford cash, do it. If you cant, buy what you can afford to pay each month without causing you stress.
I know I enjoy ours more than 190.00 a month.As the last one I all ways wondered what was going to brake next.Plus we camp about twice as often as we enjoy it more.At 67 I am getting in all the fun we can and camping is fun and relaxing to us.
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Crazyfoe
USA
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Joined: 04/13/2004
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ktmrfs wrote:We were ready to plunk down cash.
Normally we pay cash for all vehicles including RV's.
However, when we bought our trailer last year I analyzed the rates.
I am getting 5.5%+ tax free dividend yield on the money I would have used to pay for the trailer.
The bank gave me an HELCO loan rate of 2.9% which after federal and state tax deduction rates is an effective interest rate of 2.3%.
so took the bank up on the offer, kept the investments and investment income coming in and did a HELCO.
That's the way we looked at it. Simple to say never get a loan yada yada, but the money we would have lost buy paying cash just didn't equal more $$. No right or wrong answer, what ever ultimately you can afford and feel comfortable paying and still have enough $$ to then go play.
04' Chevy Silverado 2500HD 496 cu in - Allison
'06 Keystone Cougar 304BH
1 Honda eu2000i generator
Drawtight Activator
Huskey Weight Distribution System
1 Spazzed Weimaraner
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doxiluvr
Tucson-AZ
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Joined: 11/03/2006
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My advice would be to pay cash and make sure you have a large enough tow vehicle to pull it. So many people buy the trailer first and then find out it is too big or heavy for their TV and then have to go more into debt. Or if you want, finance it on a 12 month loan only. You will enjoy the trailer more knowing it is truly yours.
2006 Keystone Sprinter 300fkms
2007 Silverado 2500 Duramax Diesel 6.6 - Allison 1000 6 spd. auto. tran.
1 high school sweetheart hubby - 1 longhaired mini-dachshund, Hannah
4 grown kids, 6 grandkids
1 2007 Yamaha v-Star 1300
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LarryJM
NoVa
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Joined: 11/09/2007
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jlrmfc21 wrote:Hi everyone,
Are most people financing or paying cash for their Travel trailers. I hear rates are very good and you can get 10 and 15 year loans. Is that true?
What is recommended with such low rates?
I pay cash now for everything unless my income is assured such as mine and then only if I like the rate and the payment is less than 1/2 what I just can't spend in a mo. If working and especially with wee ones would be very careful in financing if it requires any sort of budgeting. Bascially an RV is a toy like a boat, jet ski, snowmobile, etc. and should be bought with cash or financed with money that you know for a fact you just can't spend even with emergencies.
I retired in 1990 and the only two items I financed were my wife's Real Estate car that was used over 90% in her business and two years ago our new "beater" car Hyundai Elantra when I started drawing Social Security that I really couldn't spend all of it each month as hard as I tried.
When working and raising a family thru college I sure didn't finance anything where I would have to carry or increase any sort of credit card debit. I always paid off any credit card debit much, much sooner like 6 mo to a year when financing something. Now I do finance larger purchases from Lowe's or HD when they give the 6 or 12 mo. free financing since I always pay it off w/o incurring any interest and that is truly FREE money so why not.
Larry
* This post was
edited 04/13/12 07:33pm by LarryJM *
2001 standard box 7.3L E-350 PSD Van with 4.10 rear and 2007 Holiday Rambler Aluma-Lite 8306S Been RV'ing since 1974.
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B.O. Plenty
Minnesota
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Joined: 02/04/2010
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I would never finance a toy for more than 5 years. Along with that you need a decent down payment. Those 10-15 year loans are a sucker deal that will have you owing more than it's worth for many, many years. What if you lose your job or your health and have to liquidate it? Besides all that do you really think you'll keep it for 10-15 years? Nothing worse than having to write out a check to someone so you can sell it to them and pay off the bank..
B.O.
2011 Big Country 3250TS...2010 Ram CC Laramie 4wd Cummins
15k Super Glide, Firestone Ride Rite, TrailAir Tri-Glide
Michelin XPS Ribs. Just say no to Chinese tires.
Twin Cities Mn.
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Jetta03
Alberta Canada
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Joined: 08/31/2011
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IMO financing a very quickly depreciating toy just doesn't make sense. Consider if you financed $25000 on an rv at 6% for 12 years you are paying over $9000 in additional interest in that time  after which the rv is close to worthless.
I'm going to suggest that if you can't afford to pay cash then you REALLY can't afford to finance and should be looking at something cheaper.
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Crazyfoe
USA
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B.O. Plenty wrote:I would never finance a toy for more than 5 years. Along with that you need a decent down payment. Those 10-15 year loans are a sucker deal that will have you owing more than it's worth for many, many years. What if you lose your job or your health and have to liquidate it? Besides all that do you really think you'll keep it for 10-15 years? Nothing worse than having to write out a check to someone so you can sell it to them and pay off the bank..
B.O.
Who cares how long it's financed for....if your committed and able to pay it down quicker. Otherwise I totally agree but it can be used as a tool.
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TOOBOLD
CALI
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Joined: 07/08/2004
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I'm glad most of you have all that money sitting in your wallets. I have no trouble financing my toys, but will not use a HELOC. I'm not sacrificing my house for a toy. We don't have trouble paying for our stuff, but you never know with this economy.
We'll finance the toys and make extra payments ont hem as we get extra money. I have the pink slips on all the other toys except the trailer. I can live with that. We bought used because we couldn't justify paying 400+ for a new trailer. Our loan is a 10 year and should be done in 8 years. Works for me.
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Bama bluejay
Alabama
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Joined: 09/14/2009
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When we were young, with 2 small sons we bought a used pop-up. We enjoyed that little camper. Our adult sons still talk about those days. When we sold it, our intentions were to purchase a bigger TT, but DH didn't want to have a payment. I know we missed out on some special times with our family. We have paid cash for our TT's but they don't seem as much fun now that we are older and can afford to pay cash.
If you are a young family, and can make the payments, go for it. Those chances for memories will be gone faster than you think. Buy what you can afford, and just enjoy. Children need that family time, and doing things together.
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