Financing in Retirement

[Regenburgh3]

Quote

Thinking of Buying a Greyhawk 29MV from Wholesale RV Club

Any have any thoughts on the Jayco Greyhawk 28MV (or any Greyhawk), and have any experience with buying through the Wholesale RV Club?  I'm downsizing from a 99 Country  Coash Intrigue,  and would like to know of any  drawbacks to the Greyhawk, and the reliability of the dealer.  This will be the first new RV I've bought.

[bbnuttmann]

Rewillia,

It all depends on the numbers.  Here is what I did.  Bought a used Country Coach Affinity in 2009 when the coach was almost 7 years old.  When we bought it I put about 30% down and financed it with a simple interest bank loan and no early payment penalties.  The loan at that time was 7%.  A year later I refinanced our house at 3.25% interest and paid off the 7% loan.  I had/have the cash to pay off the loan, but my estimate of earnings from leaving my money invested was more than the 3.25%.  And of course the 3.25% was interest I could deduct from our taxes.  

Things have gotten much worse since 2009 for investors who want bonds or other fixed income investments.  Today you are lucky to get bonds of good quality that pay over 2% unless you pay a big premium.  The only market paying much is equities.  But of course equities can go down and so that comes into play.  

In my humble opinion, and this is a personal opinion, I am not a qualified investment person, today you would be better off to either 1. Pay cash.  2. Refinance your house or get a house credit line to pay for the motorhome.  You should be able to get a house refinance for 4%.  If it were me, I would pay cash.  

[five]

6 hours ago, bbnuttmann said:

...If it were me, I would pay cash...  

My Dad, long gone I'm sorry to say, always told me as a young  man, "if it's a toy and you can't afford to pay cash, you don't need it."

[manholt]

Right on!