Skid Row Joe wrote:

Your Vue is depreciating @ the same rate as any new SUV.

In 3 years it will have depreciated by 60%.....that's not 0%. --You've been had!

cody wrote:

I guess I just don't understand how credit works, that you can make money by owing and paying out a small fortune in interest, the idea of writing it off on taxes is only smoke by people that don't understand finance. My brother is a very sucessful financial consultant, my father, before he passed away was a director at a major bank, my brother in law is a CPA, none of them bought into the idea of borrowing to make money, on paper it looks interesting but in the practical sence it usually falls thru. There are a lot more creative ways to make money, a lot more, I can't think of any instance where I've lost money by paying cash up front, we've bought and sold houses, apartment buildings, we have a few land holdings that are on a lease basis and providing a monthly base but always with real money and not loans. I'm always open for education so if anyone can show me in real dollars by real life experience how owing money is more cost effective than not owing money, I'm willing to listen with an open mind. Many of my investments are only paying between 7 and 9% interest now because of the downturn but that is still a fair return, a percentage of that return goes into further investments and some goes into future holdings, to borrow and cut into that return by whatever the bank is charging isn't cost effective to me, it may be to others but not to me.

sepisllib wrote:

True - the only way recreational items and vehicles can become an "investment" is when one has the capability to put money into something with the purpose of turning around and selling it.

That - generally - is caller "dealers".

However, the original post simply brought up the question of wondering how many folks out there have bought RV's, and related items, only to find themselves very upside down in the arrangement.

Not criticizing anyone at all here - just begged the question.

Should we be critical of others doing that - one must be honest and think about our own issues - probably most of us have done something really dumb during their tenure here.

In the mean time -

God Bless

Bill

newxmar wrote:

A motorhome is not an "$$$$$$$ investment". It is an item bought for enjoyment/lifestyle.

trop-a-cal wrote:

The dollar is depreciating faster than your RV interest rate so that makes the payment almost interest free after you deduct for second home interest rate. The cost to build new Rv's will be so high, that you will have a bargain on your hands, when compared to what it would cost to build it new. Think of the drop in value for homes and big SUV's and trucks, then RV becomes not so bad. My thought is to keep it in top condition and in a few years it's paid for and all I have to pay is the cost of fuel, upkeep, and site. When housing starts back up RV values probably will get in more demand and thus increase in value.

hottubkid wrote:

But, you then pay interest so the total amount you pay is more. Yes, you make interest on money in the bank but I don't see how you make more when you could pay cash. Also, Many people think they can pay a loan and then they louse their job or have health problems. Tell me more.

Sully2 wrote:

Upside down?...Right side up.? I dont care if Im inside out on the loan on my rig. Our plans are to keep it till we die..and after that it dont really matter what its worth.....but as long as I have "investments" who's return is more than enough to make my payments and "up keep"....I could care less what "position" Im in on a loan