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20 Year Loan At Age 60

20 year loan

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26 replies to this topic

#1 dowdyl

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Posted 18 February 2012 - 08:51 AM

At 60 years of age, we're thinking of trading our 2006 32' Southwind Fleetwood motorhome for a diesel pusher. Is it insane to even consider this at our age? How do others handle this? I'm still working but plan on retiring in another 5 years.
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#2 hermanmullins

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Posted 18 February 2012 - 09:02 AM

dowdyl, Welcome to the Forum. I say go for it. If any thing, it will give you a very good reason to keep on keeping on. We got an 18 year note on our coach in 2007 and I plan on paying for it, or maybe trading up to something my kids will have to worry about in 20 years or I hope more.

One of the new sayings is "Live, Love, Laugh", I think we should add to that, "Live, Love, Laugh, all from your RV". :lol: :lol: :wub: :lol:
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"Fair winds and Following Seas"

Herman & Bobbie Mullins, F302225
Whitewright, TEXAS
'02 Monaco Dynasty, 40-foot 400 HP ISL
Chevrolet Silverado (M & G air brakes)
U.S. Navy PR-3 1956 to 1964

Southern Region Vice President for Six-State Rally Association
Lone Star Chapter FMCA Past President
South Central Lucky Rollers
Rally in The Pasture


#3 dowdyl

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Posted 18 February 2012 - 09:14 AM

Thank you so much for your response! Very encouraging. I had the same anxiety when we bought our home 40 years ago. :P
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#4 Guest_BillAdams_*

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Posted 18 February 2012 - 10:34 AM

Absolutely! Obviously, the interest on a loan of that length is going to make the coach difficult to trade in the future but if you plan to keep it (or put have a pretty big down payment) who the heck cares. You can let your heirs pay it off or add a small life insurance policy (don't take a dealer offered credit life policy) to help should something happen to you unexpectedly.

#5 hermanmullins

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Posted 18 February 2012 - 10:39 AM

Good advice, I hadn't thought of a term life policy on the balance. I think I will look into it. Bobbie could benifit if I go first.
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"Fair winds and Following Seas"

Herman & Bobbie Mullins, F302225
Whitewright, TEXAS
'02 Monaco Dynasty, 40-foot 400 HP ISL
Chevrolet Silverado (M & G air brakes)
U.S. Navy PR-3 1956 to 1964

Southern Region Vice President for Six-State Rally Association
Lone Star Chapter FMCA Past President
South Central Lucky Rollers
Rally in The Pasture


#6 chucknewman

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Posted 18 February 2012 - 02:02 PM

dowdyl,

I have to agree with the other posts here. You have no guarantee that you will be around in five years from today. At our age we have to enjoy life any way we can. Whether you're still working or not.

A recommendation: Don't buy new, particularly in this economic climate. Purchasing six coaches over 30 years this was our first pre-owned unit. And it has given us almost zero problems compared to the new units we've purchased over the years.

We paid only 32% of the original MSRP for this coach which was ten years old at the time, but had only 35K miles on it and was kept inside a barn. That may sound like a lucky purchase. And maybe it was. But it didn't come easy -- we spent four months and traveled 5 states looking for a very well maintained coach. They do exist; we sold five of them.

Our preference was to find a well cared for coach to make it easier for us to keep our "no debt" status following retirement.

From our experience during that looking jaunt, we found you really don't want to invest in a coach that had 3 to 5 owners before you saw it. Think of the word lemon. And we saw many at great prices.
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#7 hermanmullins

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Posted 18 February 2012 - 03:51 PM

Another thought. If they will loan you money for 20 years and a depreciating asset, then they feel you will live long enough to pay for it.

So I say "GO FOR IT".
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"Fair winds and Following Seas"

Herman & Bobbie Mullins, F302225
Whitewright, TEXAS
'02 Monaco Dynasty, 40-foot 400 HP ISL
Chevrolet Silverado (M & G air brakes)
U.S. Navy PR-3 1956 to 1964

Southern Region Vice President for Six-State Rally Association
Lone Star Chapter FMCA Past President
South Central Lucky Rollers
Rally in The Pasture


#8 dowdyl

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Posted 19 February 2012 - 09:32 AM

We're a little scared of buying used (never know what you're going to get and it's a big commitment), however, would consider it if one owner, low mileage, good price, and getting an extended warrenty. We're planning a trip to Yellowstone this fall and not sure if the park can accommodate a big rig or better to stay at a campground outside of the park. Also, during the fall would you recommend reservations along the way or do you think we'll be fine because we're travelling mid-September to early October.
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#9 Guest_BillAdams_*

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Posted 19 February 2012 - 10:06 AM

It's quite likely that you will have as many (or more) issues with a brand new coach than you would with a used unit. Production quality is low as the focus is volume in most cases. There are lots of great deals to be had and used units should not be completed dismissed.

The only park in Yellowstone with hookups is the Flying Bridge. I would recommend reservations. The park is quite tight and while they did fit us in with a 40' coach, I don't believe they have many sites that would accommodate large rigs so be sure to ensure you will fit when you make reservations.

There are several dry camping areas in Yellowstone as well and I don't believe that reservations are available but should also not be necessary. They are generally only full during the dead of Summer.

#10 Koliver

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Posted 19 February 2012 - 10:34 AM

If, at age 60, you can`t afford to purchase your toys outright, you shouldn`t. Toys depreciate in a normal economy. In a recession, the value of anything recreational drops faster than anything else. At best, if you want it badly enough and can pay it off before you retire, ok to borrow, but only if that borrowing will not impact your ability to continue a decent lifestyle on the income you have left.
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#11 hermanmullins

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Posted 19 February 2012 - 12:04 PM

Buying new= Fast depreciation, 20 to 30% first year. Many problems, they may be covered by warrenty but you still have the problems and most are on the road.
bad. Every thing is new. Good
Buying preowned= The fast dep. has already take place. Warrenty problems have already been taken care of. In this economy there are some real bargins out
there.
Low milage is good, unless coach was used by snow birds. Low milage but realy lived in.
These are just my thoughts. Some people think buying new means they are not buying someone elses problems. I think buying preowned means someone else
took care of the problems.

Every body has to go with what they feel is right for them.

So follow you own gut and go for it.
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"Fair winds and Following Seas"

Herman & Bobbie Mullins, F302225
Whitewright, TEXAS
'02 Monaco Dynasty, 40-foot 400 HP ISL
Chevrolet Silverado (M & G air brakes)
U.S. Navy PR-3 1956 to 1964

Southern Region Vice President for Six-State Rally Association
Lone Star Chapter FMCA Past President
South Central Lucky Rollers
Rally in The Pasture


#12 Guest_Wayne77590_*

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Posted 20 February 2012 - 12:11 AM

You can't take it with you - money that is - when you go.

So, my children named our MH the "SKI Mobile." (Spending Kids Inheritence)

#13 dowdyl

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Posted 20 February 2012 - 02:02 PM

Everybody has been very helpful. This forum has been a very useful tool. Thanks to all!!
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#14 Allegiance40x

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Posted 25 February 2012 - 05:10 PM

Buying new= Fast depreciation, 20 to 30% first year.


With the market the way it is, you don't always take a big hit if you buy new. We have friends that recently got over $100k off a new coach priced at over $330k. So you can look at this as the first year depreciation hit...and you have a new rig. FWIW, they paid cash also, don't know if that made a difference.
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#15 Leewhiz

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Posted 26 February 2012 - 02:47 PM

One other thing to think about is that if you convert your property into a Living Trust, after you buy the coach, then the Trust will own your property and if you do not have enough money to fund the coach for the final payment if you pass no one else needs to cover the cost. Then your family will not have to worry about it either. A Living Trust can be a wonderful thing to 1) avoid having family members pay inheritance taxes; and 2) easily pass property on to your family members.

Even though I am not a lawyer I strongly recommend any retiree check into a Living Trust with a lawyer that has knowledge on it specifically.
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#16 danddferr

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Posted 18 March 2012 - 07:45 PM

I'm with Herman on this one! First you can't take it with you, I've never seen a hearse with a luggage rack! Second buying slightly used RV or Car can be a real bargain if your careful. Best wishes... Last words... GO FOR IT!!!!!!!! You only live once!

Dan
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#17 DieselGuy

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Posted 19 March 2012 - 04:25 PM

Hello we have been Rving for over 40 years as well. Started with a tent, tent trailer, used 24' 5th wheel, then a new 30' 5th wheel, and another new 35' 5th wheel.

We just traded it in on a 2005 Beaver Patriot Thunder. Only thing-- I wanted to do it a year ago, wife wanted to pay cash. So I cashed in my stocks (that I was saving for retirement) and did the dirty-- paid cash. We pick it up when our Canadian winter releases us from her grip, and like one of you said if there is anything left in the bank when I depart I did something wrong.
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#18 charles10

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Posted 26 March 2012 - 02:45 PM

My thoughts on this relate to our purchase. After many discussions about financing we decided what we could pay cash for, we were not sure there would be funds to wander the USA if we were making payments. Picked out coach we wanted and then watched Internet for around six months. While in Nebraska found a coach in Tulsa that fit our specs,ended up buying it on our way home.

Used but with few problems, 2 owners over 8 years. Purchased by consignment from a dealer that had serviced it.

The reason for that story is one of the coaches we considered and made an offer to buy is still for sale. The loan is so very much more than value of home, even owner was willing to pay 10 grand to sell it. I really feel for those people, unit is depreciating in their driveway.

I would hate to see someone get into that position.

p.s. 2 years later that coach is still for sale.
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#19 theoldman

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Posted 22 October 2012 - 10:24 AM

Don't think so. Most of the time if you pay cash the dealer will make less because the banks pay them to write the deal up and for getting them the loan-- called dealer prep.

I sold cars for a year and sometimes make real good money of the DP and the higher the rate they get you the more they make!
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#20 TownCreek

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Posted 22 October 2012 - 04:38 PM

Makes absolute sense. Deals are out there. I just purchased new MH and financed for 20 yrs under 4%.
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