OK, but it still seems that by paying 6.99%, you have reduced your intake down to slightly over 3%, down from 10% or more, with inflation running at roughly 4%, your investments are now liabilities at this time. Taking these factors into concideration you would have to be able to write off at least 71.5% of your interest payments over a 10 year period to recoup 3% of the total loss in income. My coach is gaining in value as opposed to the great majority that are depreciating, coaches depreciate to a given level, then stabilize at the lowest point, other coaches also depreciate to a given level then gain in value, by this I mean, I bought mine at the low point in it's value and totally redid the interior raising the market value above what I paid including the initial purchase price, I've got the written offers to buy from 3 dealers that have seen it and appraised it, so unless I'm missing a valuable point here, I didn't go far off line in determining a course of action.
Dan and Alice, fulltiming, eagle model 10, jeep grand cherokee toad
Anyone who buys and finances or leases a used car is upside down at first, because the vehicle just lost 30% when you drove it off the dealer's lot.
In about 24-36 months, folks will typically catch up and have some, but very little equity in the vehicle, because of the loan structure interest vs principal payments. After all, the lease folks don't want to take back something you own money on.
Things are just about arranged that when your warranty is up, and you have a few repairs to do, it's just more attractive to ditch the old girl and cosy up to a new one. Keeps the new car market humming.
Which is all fine and dandy as long as the bottom doesn't fall out of the market.
If you were counting on getting %40K as a trade-in on your gas-guzzler and dealers are now quoting $23K, then you know you're stuck with an ice-cold potato.
I was on the road today and say just 2 RV's. Same weekend last year (holiday weekend in my neck of the woods) you couldn't really keep count.
'99 Glendale Royal Expedition 24' Class C
2003 Subaru WRX wagon as toad.
buchrob wrote: Anyone who buys and finances or leases a used car is upside down at first, because the vehicle just lost 30% when you drove it off the dealer's lot.
In about 24-36 months, folks will typically catch up and have some, but very little equity in the vehicle, because of the loan structure interest vs principal payments. After all, the lease folks don't want to take back something you own money on.
Things are just about arranged that when your warranty is up, and you have a few repairs to do, it's just more attractive to ditch the old girl and cosy up to a new one. Keeps the new car market humming.
Which is all fine and dandy as long as the bottom doesn't fall out of the market.
If you were counting on getting %40K as a trade-in on your gas-guzzler and dealers are now quoting $23K, then you know you're stuck with an ice-cold potato.
I was on the road today and say just 2 RV's. Same weekend last year (holiday weekend in my neck of the woods) you couldn't really keep count.
There's a big difference between finacing a car that you need to get to work with and a MH. I, for one, will not be crying about being upside down on a toy.
Mark
2000 Itasca Suncruiser 35U on a Ford chassis
2003 Ford Explorer toad with US Gear brakes,
ReadyBrute tow bar, and Demco base plate.
Neither will I Mark, and I am on the verge of buying a new and even bigger toy. Hey, you think an RV is an upside down investment! They are cheaper than having kids! You pay 75,000 for a college education for them and what do you get in return..a guy with a degree who takes your last beer out of the fridge.... Just kidding!
___________________________________________
08 Holiday Rambler Vacationer 38PLT Workhorse UFO GAS Pusher Chassis
06 Saturn Vue toad, SMI Breaking sys,Blue Ox tow bar. Myspace site and blog
Gramps and family Drive a UFO.com
This has been a very interesting thread. Just about every position/argument posted has been rolling around in my head the past few weeks.
Today, with tears in my eyes, I put a FOR SALE sign on our "retirement dream". We bought a new motorhome in 2004 planning and expecting to enjoy it for at least 12-15 years. We upgraded several items on it and got lots of "bells and whistles" and had a wonderful time for three summers seeing some beautiful parts of our great country. But, a year ago, my husband's spine collapsed and he became unable to travel anymore. So, for the past year, our DreamHome has been sitting on its concrete slab beside the stick house. I keep going out there and stay current with the usual maintenance, drive it over to be washed, get it inspected and occasionally sit and watch TV in it while I reminisce about the places we went to and things we saw.
But, after a lot of discussing and finally realizing it was foolish to keep making payments on it (even though we can afford to), we decided it was time to let go of our dream. Yes, I guess you could say we are "upside down", but when it's time to let go, it's time to let go.
I guess I've said all this just to say: if you are lucky enough to afford an RV--go for it, buy it, and use it every chance you get, see this wonderful country we are blessed to live in, make lots of memories as long as you can. You just never know when life is gonna smack you up side the head and all the plans you had go down the tube.
Happy Trails to you all!
TwoForTexas
"When facing a difficult task, act as though it is impossible to fail. If you're going after Moby Dick, take along the tartar sauce."
sepisllib wrote: Guess that's a false statement to some degree as I certainly am not. However, that said, in a sense I really kind of am upside down on our coach as I paid around wholesale for the coach back in 2004 and since then have put nearly $30,000 into the coach in cold hard cash. I owe nothing on it ---- but I certainly cannot recoop anywhere near my total investment should I trade or sell it.
Really - average retail on mine is $42 and change and that would be a substantial loss from what I actually have in it. But - at $10,000 a year for the enjoyment and use of the coach ----- guess that it's a far cry from buying a new one and taking the depreciation hit for first 5 or 6 years - eh?
Back to my original reason for this post ------
Thinking of trading - as some know. I will lose at least the amount I noted in paragraph above trade or sell. Question I have then is it worth it to me to be upside down in the new(er) coach?
How do you put a value on enjoyment, happiness, contentment, and freedom - especially for the last few years of one's life?
I don't really "have" to be upside down (like in a loan for the RV) however I really prefer to maintain my liquid assets. Should I end up doing the trade I lilely will go with something 01 or 02 mainly because of the loan amount needed - that way the upside down issue will really be a moot one should I die within next couple years or so. Wife should be able to sell the coach for fairly close to the balance on loan and therefore maintain our liquid assets for her living costs from there on out and the insurance would more than cover my finals.
I just am curious (I know, none of my business) about how many of us out here have mortgaged our souls for this purpose though.
God Bless
Bill
Bill, you essentially posted this same post two weeks ago. You espoused the same questions/concerns ad nauseum..... I asked you what the dealer was offering you for your early 1990s coach.....you answered, you didn't know, you were keeping it. BTW, it's worth nowhere near $42K, to anybody! That's pure BS claiming it is.
I really don't understand your posting this again.........??
TwoForTexas wrote: This has been a very interesting thread. Just about every position/argument posted has been rolling around in my head the past few weeks.
Today, with tears in my eyes, I put a FOR SALE sign on our "retirement dream". We bought a new motorhome in 2004 planning and expecting to enjoy it for at least 12-15 years. We upgraded several items on it and got lots of "bells and whistles" and had a wonderful time for three summers seeing some beautiful parts of our great country. But, a year ago, my husband's spine collapsed and he became unable to travel anymore. So, for the past year, our DreamHome has been sitting on its concrete slab beside the stick house. I keep going out there and stay current with the usual maintenance, drive it over to be washed, get it inspected and occasionally sit and watch TV in it while I reminisce about the places we went to and things we saw.
But, after a lot of discussing and finally realizing it was foolish to keep making payments on it (even though we can afford to), we decided it was time to let go of our dream. Yes, I guess you could say we are "upside down", but when it's time to let go, it's time to let go.
I guess I've said all this just to say: if you are lucky enough to afford an RV--go for it, buy it, and use it every chance you get, see this wonderful country we are blessed to live in, make lots of memories as long as you can. You just never know when life is gonna smack you up side the head and all the plans you had go down the tube.
Happy Trails to you all!
TwoForTexas
We wish you the best in pulling the trigger on deciding to sell after months of discussing the subject and we hope you find a buyer soon for an amount as near as possible to your loan amount. We also wish the best for your husband's health.
When we started looking at MH's your story was heard over and over and encouraged us to buy for our needs today then future needs/wants because unlike you we could not afford to make huge monthly payments on a MH that we could not any longer use for one reason or another.
It is great encouragement to others by you to make memories while one can because the day can come when that may be hard to do. Again thanks for sharing so others can learn from your personal experiences and act today to get out there and make memories as fast as possible.
topflite51 wrote: How much is your mental health worth? If the RV is costing you more than that, you are upside down. If the RV is costing you less than your mental health is worth, than you are RIGHT SIDE UP.
There you go!
Steve,Kathy,Josh & Morpheus the Basenji
2004 40' TSDP Country Coach Inspire DaVinci
350 Cummins, 3000 Allison
2008 Wrangler X Sahara/Blue OX Tow Bar/Apollo Brake
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