My answer may help you with your decision.
reference comes from a financial advisor at an RV show
several years ago. He stressed that if you finance
$20,000 for an RV for five years at 4% and invested the
20,000 for five years at 4% compound interest your
investment will grow faster than the interest accumulates
ass you pay off your mortgage. RVs
depreciate like a car but hopefully your investments will
continue to grow. A house investment continues to grow
but for sure RV's depreciate at a rapid rate especially if
they are purchased new. RVers buying a pre-owned unit
then the major depreciation is decreased. I hate to
tell you that numerous high end RVs on the road are
are many types of financing available and with the fall in
the market the past few years the above may not be as
good an example. BUT everyone has a different route
that is right for them. I
strongly suggest you talk to a financial expert who knows
your financial situation.
That comment was a suggestion to get people
thinking. For sure once you spend the money for
your RV it is gone and it will never earn any interest
another instance at an FMCA (Family Motor Coach Association
seminar) the instructor stated that many wealthy RVers
financed their units because it cost them less to finance at
today's low interest rates. They prefer
to have their investments continue
to grow - many times with wise investing they will earn
more than they pay. I am not an advisor but I
do listen when the experts tell me something.
this is of some help and PLEASE
talk to a financial counselor who knows your situation.
Dealers usually can offer you considerable lower
financing than most banks can. It is called a
Conditional Sales Agreement and they will shop for an
equitable loan for you. These CSA's can
be life insured and/or paid off in full with no
penalty. Depending on the cost, year and condition of
your unit, mortgages are available for 20 years.
though the mortgage will be covered for the 20 years, this
type of lower interest financing may and may not be carried
over beyond the five years.