Why are RV Loan Rates So Looooooong?

[tslarson]

Originally Posted by FeatherFam

Very true - So much has changed. In the '60's-'70's, my dad raised 7 kids, paid cash for new cars, owned a Santa Fe travel trailer, and financed homes for 15-20K on 6-10K annual salary as a salesman with an 8th grade education (no HS diploma).

Credit and dual income households changed it all. My wife and I make what a wildly successful, "wealthy" doctor made back in the day, and we make ends meet. We would live like lonely monks without financing. We do as others have said. Use our outstanding credit rating to get little to no interest and aggressively pay things down to reduce the note duration. We would be lost without "same as cash" financing for our home repairs, appliances, and maintenance. Everything is insanely expensive. It is just the economy that we are in today. The days of paying cash for everything are a memory. In theory, we could pay cash, but it would take us so long to save the exorbitant costs of goods that we will die before we leave the house or clothe ourselves.

It is pathetic. Our "'60's rich man salaries" do not buy Dad's life - Cannot even get in the mix without the "banker." We have to deal with the devil to make purchases on poorly made, designed to fail junk and live in dangerous communities and a debased culture that has forgotten civility and morality. I would take Dad's days any day. To quote an '80's Sunday NFL game commercial, featuring Don Shula behind the wheel, "This is not your father's Oldsmobile." Can't even get an Oldsmobile. As caboose boomers, we thought Dad's life would be ours - Not so. Even with master's degrees, tons of experience, and old school serious work ethics - It ain't gonna happen. The gig is up. It was a nice ride - Post War Era, 50's - early '70's. We often wish we would have never tasted Mayberry and the "Dream."

I love your term "caboose boomer". I am exactly in that position, being born in 1961. My friends often compare our life now to our parents life when we were growing up. My parents, on my dads middle income earnings only, had more purchasing power than my wife and I do on two supposedly middle class incomes. My dad was able to afford to have one brand new car financed for 4 years. My wife and I can afford a similar used car financed for 5. I could give similar endless examples.

[Woodworker]

Brand new 1984 Ford F-150 4x4 $9,000.00 financed 3-1/2 yrs. Those where the days, at least mine anyway.

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[wags999]

What everyone is forgetting is we demand so much more today than what our fathers did. The first new car I can remember my folks buying was a 1954 Ford. Being from Chicago it's hard to believe but Heaters were an option... radios never came with cars and were only FM. AC ? Never heard of an AC in my car at my house or in my school. Electric seats ? Not even a thought, no auto transmission either that was for the "rich". No air bags, heck no seat belts. Today's cars are nothing like our folks vehicles. RV We went to Alaska in 1965 driving from Chicago, with a truck camper. Basically a bed and cooktop on the back of a pickup..No MW, no AC, not even a heater.

And everything in life is the same, my kids when they got married expected to have a house as large and nice as it took us 20 years to get, and they did. Yes we paid $20,500 for our first house in 1969 but it had no A/C, no sound system, no onsuites, but did have a washer / dryer in the kitchen. My Father as a union heavy equipment operator never made $10 an hour in his life...today that's minimum wage.

I worked at the first McDonalds in Des Plaines, Illinois, made less than 90 cents a hour, and a hamburger fries and coke cost about 80 cents...today you make $10 and hour and that same hamburger fries and a coke is about $5.

We expect all the luxuries of a home, AC, Heat, MW, sound system, TV in every room, couches, recliners, fireplaces etc etc etc.....than complain it costs so much more today than in the past.

Most of us could not live as our parents or especially our grand parents did, were too soft, to spoiled. So yes, you need two incomes because we expect to have so much. I want what I want and I want it now, is more the mantra than we'll save till we can afford it.

So yes, RV loans and car loans need to be longer, so we can afford them. But only because we demand so much more than what our parents were satisfied with. It's the choice we as a society have made.

[repacs0103]

Originally Posted by wags999

What everyone is forgetting is we demand so much more today than what our fathers did. The first new car I can remember my folks buying was a 1954 Ford. Being from Chicago it's hard to believe but Heaters were an option... radios never came with cars and were only FM. AC ? Never heard of an AC in my car at my house or in my school. Electric seats ? Not even a thought, no auto transmission either that was for the "rich". No air bags, heck no seat belts. Today's cars are nothing like our folks vehicles. RV We went to Alaska in 1965 driving from Chicago, with a truck camper. Basically a bed and cooktop on the back of a pickup..No MW, no AC, not even a heater.

And everything in life is the same, my kids when they got married expected to have a house as large and nice as it took us 20 years to get, and they did. Yes we paid $20,500 for our first house in 1969 but it had no A/C, no sound system, no onsuites, but did have a washer / dryer in the kitchen. My Father as a union heavy equipment operator never made $10 an hour in his life...today that's minimum wage.

I worked at the first McDonalds in Des Plaines, Illinois, made less than 90 cents a hour, and a hamburger fries and coke cost about 80 cents...today you make $10 and hour and that same hamburger fries and a coke is about $5.

We expect all the luxuries of a home, AC, Heat, MW, sound system, TV in every room, couches, recliners, fireplaces etc etc etc.....than complain it costs so much more today than in the past.

Most of us could not live as our parents or especially our grand parents did, were too soft, to spoiled. So yes, you need two incomes because we expect to have so much. I want what I want and I want it now, is more the mantra than we'll save till we can afford it.

So yes, RV loans and car loans need to be longer, so we can afford them. But only because we demand so much more than what our parents were satisfied with. It's the choice we as a society have made.

I agree. My wife and I's first house was 880 sf and as basic as they come. We bought it in 2006 on a conventional note when our friends were buying McMansions on ARM's, and at nearly 40 years old are finally buying our second home which is still modest, but it fits our income. We are not the norm though.

The other factor today is student loans. High school guidance counselors have been preaching to our youth for 30 years that you're nothing if you don't go to college. My wife and I pay a mortgage every month in student loan payments- without that we could afford and save a lot more. I by no means advocate free education, but we need to do a heck of a lot better job of convincing our kids that there's honor, fulfillment and good salaries in the trades.


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[Woodworker]

Hard to teach kids anything these days, too many agendas that don't involve education

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[Deal Breaker]

Originally Posted by rodro123

You pay $40k for the RV and wipe it out in an accident. At time of loss you owe $38k but insurance company looks it up and says it worth 22k that's what they pay out. but your loan company wants the $38k that's where gap comes in to pay the difference. With out gap you pay that amount. BUY Gap

Just get a full replacement policy... It's pocket change and several carriers offer the feature.. I paid cash for my RV but didn't want to eat the difference if the RV burnt to the ground or some other complete loss...

[Crabman]

Originally Posted by wags999

What everyone is forgetting is we demand so much more today than what our fathers did. The first new car I can remember my folks buying was a 1954 Ford. Being from Chicago it's hard to believe but Heaters were an option... radios never came with cars and were only FM. AC ? Never heard of an AC in my car at my house or in my school. Electric seats ? Not even a thought, no auto transmission either that was for the "rich". No air bags, heck no seat belts. Today's cars are nothing like our folks vehicles. RV We went to Alaska in 1965 driving from Chicago, with a truck camper. Basically a bed and cooktop on the back of a pickup..No MW, no AC, not even a heater.

And everything in life is the same, my kids when they got married expected to have a house as large and nice as it took us 20 years to get, and they did. Yes we paid $20,500 for our first house in 1969 but it had no A/C, no sound system, no onsuites, but did have a washer / dryer in the kitchen. My Father as a union heavy equipment operator never made $10 an hour in his life...today that's minimum wage.

I worked at the first McDonalds in Des Plaines, Illinois, made less than 90 cents a hour, and a hamburger fries and coke cost about 80 cents...today you make $10 and hour and that same hamburger fries and a coke is about $5.

We expect all the luxuries of a home, AC, Heat, MW, sound system, TV in every room, couches, recliners, fireplaces etc etc etc.....than complain it costs so much more today than in the past.

Most of us could not live as our parents or especially our grand parents did, were too soft, to spoiled. So yes, you need two incomes because we expect to have so much. I want what I want and I want it now, is more the mantra than we'll save till we can afford it.

So yes, RV loans and car loans need to be longer, so we can afford them. But only because we demand so much more than what our parents were satisfied with. It's the choice we as a society have made.

Good points. One of my favorite responses I give when our dishwasher or ac or some other luxury is not working to my DW or sons is " You know what, people survived for thousands of years without a dishwasher, (or whatever it is that is offline) in fact they have only been available for the last 50 years or so. So I think we can get by a few days without it too." Of course this response does not win any popularity contests.☺BTW I also worked at McD's when I was a teen but got a whopping 2.90 an hour so I don't go back quite as far.

[wags999]

Originally Posted by jloco

I rarely use cash these days with the introduction of debit cards. Money comes right from the bank account. I haven't stepped inside my bank for years. Pay gets direct deposited, which gets me free banking. I love the electronic world with paypal, etransfers, etc. It's all MY money, but I prefer the newer ways of getting it and spending it. Plus I monitor my bank account more than ever now with instant alerts of what could be fraudulent activity. As a software engineer that actually helps create some of this stuff, I enjoy the convenience and security of it all. Credit cards? Not so much. Sometimes I use my AMEX because of the extra product protection it provides, or simply because of the points, always pay it right away and do not carry a balance. To each his own.

To me this is very disturbing trend in society. Many may not know but when the banks went BK during the depression, they took your money with them. Lets say you had a mortgage with bank A, you owed $50,000...and you had $50,000 in savings in the same bank. The bank went under, you still owed the mortgage BUT you had no savings anymore. Fast forward to today... yes we the FDIC, which doesn't have enought assets to handle one medium size banks deposits. Also, as the law stands, your money is an asset of the bank and your a creditor, no different than the guy that hauls their trash away. Aslo, not many know, but the FDIC has up to a year (as of todays laws) and possibly longer, to give any money back.

Also in todays age, with computers being hacked, systems going down and the possiblity of adversaries capable of taking down our computer systems, your dead in the water without cash. We have seen systems go down, and large stores having to close temporarliy, throwing many into a panic.

So what you may want to claim as "my money" in your bank, it's not your money.. You only have a claim as a creditor, nothing more. And if you read your bank papers, they have no obligation to give you any money immediately. They have months to pay back your money and, even then, not in totality.

I use banks, because we have to. But, I also keep some cash onhand, "just in case". I also have a more difficult time parting with cash than using a piece of inert plastic.

I have never used a debit card, even tho I was issued one by my bank, in fact, I don't even carry it.

Governments around the world would love for cash to be gone. It allows government to track your every move, and allows them more control over each us. You get government healthcare....but you purchased soda, you pay more. "We don't think your eating healty enough, so you pay more". These may seem tinfoil hat stuff, but, in my life I have seen us moving that direction, and in many cases are already there. Already big businiess and big government have too much information and too much control over our lives. It's scarey you go on Amazon and look at a product and every site you look at after that, that product is in the pop up ads.

If I buy a donut, it's none of the governments busness. I will pay in cash for most of my everyday smaller purchases. Using credit cards when they pay me to do it, and, when I don't care if anyone else knows..

Call me paranoid, but, laws making your money the banks, were put in place for a reason. Were you aware the Government recinded the Posse Comitatus act? Why? Unless they feel they will need the right to use the military against the American people....were you aware a law was passed in 2010 I believe, that allows the president to arrest any citizen, call him a terriorist and you have no right to a lawyer, no right to a trial, and you can be held forever, without even being charged? Why would the government do that, unless they felt they may one day need it ? We live in scarey times, stuff happens we never thought possible. I don't' want to go to the grocery store and be told they only accept cash because the "systems" are down, and find myself with only an electronic blip showing I have the means...

[Woodworker]

I remember my first job $2.00 hr unloading a hoarse trailer full of water melons. It morphed into a 30-40 an hr week job while in high school but because my Father told me you want that truck you'll pay for it, all of it. Insurance, tires repairs all of it. Tell a kid he has to be his own vehicle now an they'll call child services. Bit at $2.00 an hr I saved $2,000 in 9 months an now, well I'll let that go. Make a kid pay for his vehicle and upkeep an they'll take care of it. Buy it for em an you teach them no responsibility

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[Woodworker]

That's why I never had kids. I'd be in prison for child abuse. How dare you make your child work for something.
I digress, a lot of ya'll walked up hill in a foot of snow both ways so it was always worse. Off to the fridge

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[jloco]

Originally Posted by wags999

To me this is very disturbing trend in society. Many may not know but when the banks went BK during the depression, they took your money with them. Lets say you had a mortgage with bank A, you owed $50,000...and you had $50,000 in savings in the same bank. The bank went under, you still owed the mortgage BUT you had no savings anymore. Fast forward to today... yes we the FDIC, which doesn't have enought assets to handle one medium size banks deposits. Also, as the law stands, your money is an asset of the bank and your a creditor, no different than the guy that hauls their trash away. Aslo, not many know, but the FDIC has up to a year (as of todays laws) and possibly longer, to give any money back.

Also in todays age, with computers being hacked, systems going down and the possiblity of adversaries capable of taking down our computer systems, your dead in the water without cash. We have seen systems go down, and large stores having to close temporarliy, throwing many into a panic.

So what you may want to claim as "my money" in your bank, it's not your money.. You only have a claim as a creditor, nothing more. And if you read your bank papers, they have no obligation to give you any money immediately. They have months to pay back your money and, even then, not in totality.

I use banks, because we have to. But, I also keep some cash onhand, "just in case". I also have a more difficult time parting with cash than using a piece of inert plastic.

I have never used a debit card, even tho I was issued one by my bank, in fact, I don't even carry it.

Governments around the world would love for cash to be gone. It allows government to track your every move, and allows them more control over each us. You get government healthcare....but you purchased soda, you pay more. "We don't think your eating healty enough, so you pay more". These may seem tinfoil hat stuff, but, in my life I have seen us moving that direction, and in many cases are already there. Already big businiess and big government have too much information and too much control over our lives. It's scarey you go on Amazon and look at a product and every site you look at after that, that product is in the pop up ads.

If I buy a donut, it's none of the governments busness. I will pay in cash for most of my everyday smaller purchases. Using credit cards when they pay me to do it, and, when I don't care if anyone else knows..

Call me paranoid, but, laws making your money the banks, were put in place for a reason. Were you aware the Government recinded the Posse Comitatus act? Why? Unless they feel they will need the right to use the military against the American people....were you aware a law was passed in 2010 I believe, that allows the president to arrest any citizen, call him a terriorist and you have no right to a lawyer, no right to a trial, and you can be held forever, without even being charged? Why would the government do that, unless they felt they may one day need it ? We live in scarey times, stuff happens we never thought possible. I don't' want to go to the grocery store and be told they only accept cash because the "systems" are down, and find myself with only an electronic blip showing I have the means...

I always have some cash close by, but it's not the way I handle day to day transactions in life. I embrace today's technology.
Sure, anyone can get hacked, but thats possible whether a person uses electronic monetary transactions or not. All your banking info is stored on the bank data system. As a software engineer, I've spent the last 20 years in the data storage industry. You could never use a credit/debit card in your life and your accounts are still vulnerable if the bank gets hacked. There's no such thing as a hack proof IT infrastucture.
Identity theft is what scares me. This is where most fraudulent activity occurs. There are tools to monitor that as well. I check my credit reports weekly to make sure there is no funny business going on. I also get alerted to any unusual activity regarding my credit. I'm not paranoid that the government can see what I'm buying. They can determine what I buy in other ways than following my electronic purchases. Look what happened just a couple of weeks ago when it was leaked the NSA could enable microphones on cell phones and TV's even when the device is powered off. Scary stuff indeed. Today's world is only going to become more electronic in the future not less.