The Best Way to Buy an RV

[FeatherFam]

Given the rapid and severe depreciation of all RVs, what are your thoughts on the best way to buy an RV?

If you have the Money to pay cash, should it be paid for in full at delivery?

Is it better to keep your money in savings earning interest and put a large amount down (50%?) and finance part of it at a low interest rate and then sell it a few years later while you can still get a decent rate of return on it? Or is it best to keep it until it is paid off?

Are your thoughts different for different types of RVs (TT, Fiver, MH . . .)?

[2naEagle]

I'm old fashioned. I think you should pay cash for it.
Don't outsmart your common sense (Lee Brice)

[Kahoneys]

I found that I have gotten a lot better price from dealers when I tell them that I will bring in a cashiers check for the whole amount!

[Midnightmoon]

Hypothetically speaking, if you have the money saved to cover the purchase price, it all comes down to the interest rate for the loan vs. the rate of return on the investment account.

[Vasquez Kid]

This is a tough one.

I think that it depends on a bunch of factors and your particular situation at the time of purchase.

You are right on the rapid rate of depreciation. I personally don't like the idea of borrowing money on a major purchase (for most of us folk) that is worth less than you owe on it once you've had it a short while (or while driving it off of the lot!). But having said that it also would matter to me how long I was planning on keeping it.

I think that I could justify going under water if I planned on getting heavy use and priceless memories out of it right away.

On our purchase we decided to get a new one with a good warranty (this proved to be smart). We are coming up on the end of our 2 yr warranty in a few months. I feel that The camper has finally "settled in" on reliability.
We really go for a good value. I beat my dealer up on price pretty good and did well on a camper that I felt was better than most. We were fortunate enough to where we could pay cash. I felt that we will own this particular camper for a good five years or so. My thought process was that I wanted to keep the cost of acquisition and ownership low (relatively speaking) and that - whatever it's sad future value is, I will sell it privately to a family that will get a solid camper and enjoy it as much as we did.

Having just said this I really feel the smartest way to buy is slightly used from someone who has taken pride, good care and maybe done some great mods to it. Paying cash in this scenario makes the most sense to me. Good luck to you getting all of these pieces to fall into place!

In a way it's somewhat similar to how I look at purchasing a car. I don't buy cars often and I drive the wheels off of them. My current comuter is a high quality good-value Honda Civic that just passed 200k miles, is 9 yrs old and I plan on keeping it going for another 100k miles. I financed it because the money was so cheap at the time. RV loans aren't always so attractive. Oh and be careful about the tax write-off aspect of this type of loan - at least how it's presented or "sold" to you and how they actually affect your taxes. Going forward are they still a write off with the new Trump tax-plan that we are all into?

I also think that it depends on your price-point and its affordability for you.

For most of us these are a recreational and luxury item. A lot of people couldn't even justify owning an RV! Personally I'm hooked. This is a lifestyle that I hope to be able to do for a very long time and with a few rigs. I might not make the best financial decision on my next one - or maybe I didn't buy this one so well??

Maybe a financial pro out there can chime in and show us a nice graph or an interesting formula? I'd still take that info for what it's worth. I think that this can be pretty subjective and situational.

[troutslayer]

Cash. TT, 5er or MH

[Woodworker]

We financed ours an after a yr it's still worth way more than we bought if for. Should be like like that for another 2 yrs or so. If I had the cash then yes I would have paid cash buy sayin that I didn't buy it with the intent of ROI in mind. These are not investments.

[GrumpyDad]

Used.

[onthegoforlife]

Used -our travel trailer was 14 months old and used twice. The previous owners updated by adding a flat screen tv with arm swing bracket, DVD player, upgraded air condition system, shelf organization system and it was still like new. We saved 30% off the retail price and paid cash. $13,500.

RB195. Jayco

[Doubleheader]

We have a 2018 Jaco we purchased new. My next camper will be purchased from a conscientious 1st owner 2-5 years old, cash deal using the power of the internet to and media to locate potential sellers.

[WinnieView]

Cash, private party.

[wags999]

I paid cash, then pay yourself back what it would of cost you to finance it. So your replenishing your cash on hand. Why pay any interest to anyone except yourself. Most safe places to keep cash will not pay you what you will pay when financing. I would not pull money out of a 401 or IRA costs too much and that's for your future.


We did purchase from RV express, located in Middlebury. Saved us about $2500 to $3000 just on freight, and got a great deal. We were heading back to Illinois anyway so it was a no brainer. We stayed a few days In Middlebury to shake everything down ( no issues). We have had no issue getting the few items we needed warranty assistance on with the local Dealer, Little Dealer Little Prices, even tho we didn't purchase it from them.

Happy Camping

[troutslayer]

Just a note about interest you pay on a secured loan vs interest accrued in an investment. If you get, say a 3.9% loan, it may sound pretty good. However, the loan sharks will get the majority of the interest money in the first several years. Meaning that you will pay a much higher rate if you sell the rig before all the necessary payments are made. I found this out years ago on a 5 year auto loan that I wanted to pay off early. At the end of the 4th year there was barely any interest due at all...most of it had already been paid!
So, you need to think twice before believing that investment interest will offset any loan interest.

[dennis b]

Originally Posted by FeatherFam

Given the rapid and severe depreciation of all RVs, what are your thoughts on the best way to buy an RV?

If you have the Money to pay cash, should it be paid for in full at delivery?

Is it better to keep your money in savings earning interest and put a large amount down (50%?) and finance part of it at a low interest rate and then sell it a few years later while you can still get a decent rate of return on it? Or is it best to keep it until it is paid off?

Are your thoughts different for different types of RVs (TT, Fiver, MH . . .)?

Cash...You will never get enough interest in savings account. like .5% around here. Unless of course you some how find 0% financing! LOL

[dennis b]

Originally Posted by 2008Seneca

Cash, private party.

[ifallsguy]

Cash is the best way to go, no matter what you purchase. But be aware, if you decide to buy at a certain large retailer that has a giant US flag flying, that they don't jack up the price because you are paying cash.

When we bought our 2016 212QBW (new), we were given a price and it could be financed out what sounded like the next century. When I said I'd pay cash, the price went up $1800 "because it costs more to process a cash sale".

Told the salesman, manager and finance manager I don't pay extra for a cash payment and we headed to the door. The sales manager ran after us and in the parking lot offered to drop the "cash price" by $500, then $1000, remove the additional cash costs and finally at a price $750 under what we were originally quoted.

When we went to sign off the papers, a processing charge of $900 showed up plus $700 for registration. Told him forget it and made it to the car. He came up to the driver window and said those were required charges, but I told him all of that was already figured into the cost of business.

Because I knew what the price of the TT should be, had a written sales agreement and knew the cost (or really lack of) processing and registration/'taxes, and told him I was notifying both the Georgia Attorney General and federal Consumer Protection Bureau of illegal business practices we got the trailer $800 (tax included) under the original price we were quoted when they thought we would finance. I did get somewhat of a revenge when I paid by credit card (they eat the charges for taking payment on a CC) and the CC company had a 5% rebate (new card with 5% rebate on purchases on a new card for the first 3 months).

The sales manager didn't supply a bill of sale (2 calls from my lawyer with the threat of a $1 million law suit for fraud against the sales manager plus the same amount against the retailer) it was emailed to me 4 weeks after the purchase. And I did file formal complaints with the Georgia Attorney General (no action there) and the fed Consumer Protection Bureau (looking into sales methods due to this and other complaints against this big Flag company).


Our mistake was going to a different store of this retailer than we had dealt with before. The normal store we use for warranty agreed there is no charges for cash, the closing and registration prices were out of line and even went to bat for us to try to get the bill of sale.

Basically, be fore armed with pricing, costs of registration in your state, what taxes you can expect to be facing and warranties. Knowledge is the best weapon in buying any TT, 5wheeler, or MH.

[wags999]

Originally Posted by troutslayer

Just a note about interest you pay on a secured loan vs interest accrued in an investment. If you get, say a 3.9% loan, it may sound pretty good. However, the loan sharks will get the majority of the interest money in the first several years. Meaning that you will pay a much higher rate if you sell the rig before all the necessary payments are made. I found this out years ago on a 5 year auto loan that I wanted to pay off early. At the end of the 4th year there was barely any interest due at all...most of it had already been paid!
So, you need to think twice before believing that investment interest will offset any loan interest.

Most loans today are simple interest...which of course would be more when the balance is higher and less as the balance is lower. Years ago, many loans were based on "Rules of 78". Basically what it is, you add up all the months from 1 to 12 and you get 78. You may 12/78 of the interest the first month, 11/78 second month etc. So your paying all the interest in the first 4 or 5 months. Since the mid 70's those loans at almost never seen. Just look for the words "simple interest" which, as I said above is based on your outstanding balance... which is how mortgages are figured.

Happy Camping with your new RV

[wags999]

Originally Posted by dennis b

Cash...You will never get enough interest in savings account. like .5% around here. Unless of course you some how find 0% financing! LOL

If you use online banking even at some large banks Capital One etc. American Express (which Is classified as a bank since 2008,) dscover etc you can get 1.5 to 2% interest.. only takes a couple of days to transfer funds from them to your checking account. Same FDIC insured etc. Worth a look

[ifallsguy]

Originally Posted by wags999

If you use online banking even at some large banks Capital One etc. American Express (which Is classified as a bank since 2008,) dscover etc you can get 1.5 to 2% interest.. only takes a couple of days to transfer funds from them to your checking account. Same FDIC insured etc. Worth a look

This is what we do. I keep 3 years of expenses in 2% accounts between Ally and Discover Bank. Transferring from their high interest savings account to a no charge checking account is instant. Only restriction is you can only make 6 withdrawals (per savings account) per month without charge. I just plan ahead when I need to transfer money. Been doing it for years and have earn over $1000 interest over the past few years. Free money, virtually instant access tied to one of their free checking accounts. And they supply no charge checks (another savings).

[troutslayer]

Originally Posted by ifallsguy

big Flag company.

I hate the Big Flag Company!