soxfan1 said:Prime would have to jump 6% to hit the break even point. Plus any interest you pay on the HELOC is tax deductible. Seems like a no brainer.

I have a coworker who told me that the loan interest he has on his RV is tax deductible. something about it being considered as a second home or something. You may want to look into that.

VanceWade said:I don't understand RVers. At all. Right off the bat, all I can think of is the fantastic vacations I could take for the next 15 years of my life with $60,000 plus whatever you'll spend on putting gas in that thing. And I wouldn't be pumping out my own toilet on that trip and showering in a closet or visiting rural Alabama on those trips, either. I'd be staying at the Ritz in Dublin, Florence, Melbourne and Maui.

I'm right there with you on this. Beside what you mentioned, you have to pay for a slab at the RV parks, and I imagine that maintenance on these beasts is very expensive, too. Plus, you can't take them everywhere.

I've heard that some Wally Marts let you park in their lot. Doesn't that sound like fun.

Sorry, but it's just not my idea of a fun way to travel.

ilikebtmoney said:kimmers71 said:You know, you people are really amazing. The guy comes on here to ask a legit question and you bash him for buying an RV. How many of you own a boat or a car? Those are depreciating assets. Did you pay cash for those? I bet not. You're telling this person to pay cash for it...how long would it take you to save $50k? He/She clearly got their use out of their 86 RV and it's time for a new Used one. And considering this one he/she's looking to buy originally retailed for $150k, it's more likely a motorcoach not some rinky dink RV.

I own quite a few toys, including some vehicles. The corvette I got 0% financing on for 3 years and paid 20% down when I could have even financed the whole thing that way through GMAC. The custom offroad machine was a $35K project, paid cash, along the way as funds were there as I wasn't going to lien my house or finance something with high interest (yes, 8% is high interest on a 15 year loan) to pay for it. Yes they are depreciating assets.. I love them, get great enjoyment out of them. What's the difference? I actually paid the asking price and didn't financially struggle in the process. Fact is.. what we're discussing here is a bad decision. PERIOD.

And that was before I found FW even, many years ago. Now, I wouldn't even tie up my cash flow on a new vette transaction regardless of the 0% offer unless I had that much cash waiting on the sidelines if necessary to cover it.

EDIT: moral of the story, don't buy things you can't afford.. AND BEING ABLE TO MAKE THE PAYMENTS DOESN'T MEAN YOU CAN AFFORD IT

So if he's putting $10k down (approx. 20%) and if he could get 0% financing, would it then be okay?

kimmers71 said:ilikebtmoney said:kimmers71 said:You know, you people are really amazing. The guy comes on here to ask a legit question and you bash him for buying an RV. How many of you own a boat or a car? Those are depreciating assets. Did you pay cash for those? I bet not. You're telling this person to pay cash for it...how long would it take you to save $50k? He/She clearly got their use out of their 86 RV and it's time for a new Used one. And considering this one he/she's looking to buy originally retailed for $150k, it's more likely a motorcoach not some rinky dink RV.

I own quite a few toys, including some vehicles. The corvette I got 0% financing on for 3 years and paid 20% down when I could have even financed the whole thing that way through GMAC. The custom offroad machine was a $35K project, paid cash, along the way as funds were there as I wasn't going to lien my house or finance something with high interest (yes, 8% is high interest on a 15 year loan) to pay for it. Yes they are depreciating assets.. I love them, get great enjoyment out of them. What's the difference? I actually paid the asking price and didn't financially struggle in the process. Fact is.. what we're discussing here is a bad decision. PERIOD.

And that was before I found FW even, many years ago. Now, I wouldn't even tie up my cash flow on a new vette transaction regardless of the 0% offer unless I had that much cash waiting on the sidelines if necessary to cover it.

EDIT: moral of the story, don't buy things you can't afford.. AND BEING ABLE TO MAKE THE PAYMENTS DOESN'T MEAN YOU CAN AFFORD IT

So if he's putting $10k down (approx. 20%) and if he could get 0% financing, would it then be okay?

It would depend on their entire financial situation, which they haven't openly discussed (how much they earn now, their current commitments, job situations, cash reserves, retirement reserves, etc)

You should pay for your RV like everyone else does... by pawning your NASCAR collector dinner plates. Those babies have probably tripled in value by now, after all they were "limited edition". And those Dale Earnhardt plates have to be worth 10x what you paid for them.

RML51 said:VanceWade said:I don't understand RVers. At all. Right off the bat, all I can think of is the fantastic vacations I could take for the next 15 years of my life with $60,000 plus whatever you'll spend on putting gas in that thing. And I wouldn't be pumping out my own toilet on that trip and showering in a closet or visiting rural Alabama on those trips, either. I'd be staying at the Ritz in Dublin, Florence, Melbourne and Maui.

I'm right there with you on this. Beside what you mentioned, you have to pay for a slab at the RV parks, and I imagine that maintenance on these beasts is very expensive, too. Plus, you can't take them everywhere.

I've heard that some Wally Marts let you park in their lot. Doesn't that sound like fun.

Sorry, but it's just not my idea of a fun way to travel.Don't forget insurance and license fees. My bro has business in two states. He commutes 1100 miles about 3 times per month. He stays in Wal-Mart parking lots and splits his trip over night. He's got little kids that travel with him and he got tired of them finding things in motel rooms. He's the only person I've met under 55 who can actually get his value out of an RV. Oh, wait, I forgot. I also know some young evangelists that get their use doing revivals. Is that what OP does?

If the original poster uses their home equity line, then the total outlay would be around $59,000 over 15 years, of which the $9,000 in interest would be tax deductible.

Personally, I think buying an RV is a complete waste of money. But who am I to tell somebody what to spend their money on. Some people enjoy boating, sports cars, vacationing, etc.... Obviously the best financial advice is to buy nothing for entertainment and live in a cardboard box eating at the homeless shelter. HOWEVER, if you've decided to actually spend some money on something that you really enjoy and won't break the bank and throw away your retirement, then why not?

Since they already have an RV, the price of maintenance and gas would stay the same (or decrease since the newer RV is probably more reliable and efficient). Also, they would be able to sell their current RV. At the end of 15 years, they would still have an RV that they can continue to use or sell for whatever it's worth.

The difference in insurance between the old RV and new RV needs to be accounted for but can't be that much.

xoneinax said:What is wrong with the 1986 that you cannot keep using it instead ?Why does this most pertinent question remain unanswered?

delzy said:xoneinax said:What is wrong with the 1986 that you cannot keep using it instead ?Why does this most pertinent question remain unanswered?
Ummmm..... It's been unreliable, the interior is worn, they want a change, the new one has better options.....

Why does this have anything to do with the strictly financial question of financing a new RV? I hope that you never ever spend any money on something that you enjoy. That would actually make life fun.

PooDonkey said:delzy said:xoneinax said:What is wrong with the 1986 that you cannot keep using it instead ?Why does this most pertinent question remain unanswered?
Ummmm..... It's been unreliable, the interior is worn, they want a change, the new one has better options.....

Why does this have anything to do with the strictly financial question of financing a new RV? I hope that you never ever spend any money on something that you enjoy. That would actually make life fun.

The point still is, the OP hasn't openly discussed their finances. Based on the things said the assumptions are they can't afford it. PERIOD. They're not spending their money if they can't pay for it.