Finance mags.. Loan question

**JayPowHound** · 12-12-2021, 04:02 PM

Originally Posted by riser3

You won't use it as often as you think unless you take a whole summer trip. Do you have plans for a whole summer off? That's where owning used, and then selling the next spring makes the most sense. For weekend use or even a week, rent.

Work in schools. so have the whole summer off.. Late June until Early Sept. We had access to a lake house until 2 years ago, so trying to supplement that. Assume LOTS of use. Multiple week+ long trips in the summer and a dozen plus additional weekends per year.

That make sense to own?

**Sirshredalot** · 12-12-2021, 04:06 PM

Originally Posted by JayPowHound

but if we are confident in ability to make payments then no issue, correct?

The poor credit isn't from anything recent.. just still paying from stupid decisions in our 20s. Month to month right now we're good and wouldn't take on anything we couldn't make work.

You've got time to try to massage and clean up your credit scores a bit before this summer. Obviously, you're not going to get a bankruptcy or default off of there. But if you've got ticky tack shit from a long time ago on your credit report, you can often make it go away and improve your credit score a lot.

I would try to do that and then finance the rv at the cheapest rate you can get from a local credit union. And I'd make sure that I carried gap insurance if I bought an rv.

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**AdironRider** · 12-12-2021, 04:11 PM

If all you are entertaining is used you should definitely rent.

You wouldn’t be planning a vacation ahead of time?

**JayPowHound** · 12-12-2021, 04:15 PM

Originally Posted by Sirshredalot

You've got time to try to massage and clean up your credit scores a bit before this summer. Obviously, you're not going to get a bankruptcy or default off of there. But if you've got ticky tack shit from a long time ago on your credit report, you can often make it go away and improve your credit score a lot.

I would try to do that and then finance the rv at the cheapest rate you can get from a local credit union. And I'd make sure that I carried gap insurance if I bought an rv.

Sent from my Pixel 5a using Tapatalk

Ignorant here.

Listen to the commercials that will "fix" credit, but assume they are all scams

Are they legit? How do we repair it?

**JayPowHound** · 12-12-2021, 04:16 PM

Originally Posted by AdironRider

If all you are entertaining is used you should definitely rent.

You wouldn’t be planning a vacation ahead of time?

We are looking for multiple random weekend excursions as well as some longer summer trips. I have the whole summer off, so not necessarily planning ahead of time. Assumed that means more sense buying?

**riser4** · 12-12-2021, 04:23 PM

Usually time heals most credit scores. And paying off outstanding debt. So if yours hasn't healed, then there are probably details you don't want to share online. I'm by no means a financial advisor. You probably want to talk to one. A real one. They can help. And definitely don't call those numbers on TV. Do either of you have an employer that offers financial advisor services as a bene? Mine does. Don't use the one at your credit union that wants to sell you products. You need someone who is paid to give advice. And do you know your current scores or are you guessing?

**riser4** · 12-12-2021, 04:25 PM

Originally Posted by JayPowHound

Work in schools. so have the whole summer off.. Late June until Early Sept. We had access to a lake house until 2 years ago, so trying to supplement that. Assume LOTS of use. Multiple week+ long trips in the summer and a dozen plus additional weekends per year.

That make sense to own?

So not just one summer? If it's multiple summers, I'm thinking new is what you want to get past the instant depreciation. But again, it's all numbers to be crunched.

**JayPowHound** · 12-12-2021, 05:06 PM

Originally Posted by riser3

Usually time heals most credit scores. And paying off outstanding debt. So if yours hasn't healed, then there are probably details you don't want to share online. I'm by no means a financial advisor. You probably want to talk to one. A real one. They can help. And definitely don't call those numbers on TV. Do either of you have an employer that offers financial advisor services as a bene? Mine does. Don't use the one at your credit union that wants to sell you products. You need someone who is paid to give advice. And do you know your current scores or are you guessing?

Know the scores through the three majors. Not on top of employer based help. Guess that's a good start

**MakersTeleMark** · 12-12-2021, 05:12 PM

Originally Posted by XXX-er

the 3 F rule ?

This. I can't think of an asset that depreciates faster than an RV, other than perhaps flowers.

**schuss** · 12-12-2021, 05:24 PM

I'll also say as someone that's considered it - RVs don't really make sense on the east coast. Most decently interesting places have great camping or cabins available, roads are narrower and you'll burn about as much in extra gas getting to the west as at least one plane ticket, while having to plod along and pay higher tolls on your way out.
For west trips, fly in, rent one and get out for 90% less trouble and likely equivalent costs.

**skaredshtles** · 12-12-2021, 05:35 PM

The folks suggesting renting are spot-on. Unless you're a masochist and enjoy fucking around with a poorly built, flimsy, tiny house slapped on an internal combustion platform.

**dunfree** · 12-12-2021, 05:46 PM

Originally Posted by MakersTeleMark

This. I can't think of an asset that depreciates faster than an RV, other than perhaps flowers.

a floating rv (boat)

**oftpiste** · 12-12-2021, 05:50 PM

Originally Posted by MakersTeleMark

This. I can't think of an asset that depreciates faster than an RV, other than perhaps flowers.

Retail diamonds

**dannynoonan** · 12-12-2021, 05:51 PM

JPH, how many nights a year you actually going to sleep in it?

**skaredshtles** · 12-12-2021, 05:59 PM

Don't forget to factor in the cost of campsites... unless you're planning on nothing but boondocking, which will bring an extra set of PITA challenges.

**Squirreljam** · 12-12-2021, 06:16 PM

Originally Posted by MakersTeleMark

This. I can't think of an asset that depreciates faster than an RV, other than perhaps flowers.

the third F, past it’s prime?

**riser4** · 12-12-2021, 06:22 PM

If the point is to have a cabin on wheels,, get a trailer. And the appropriate campsite gear. An actual RV is for mobile, never more than a few minutes in one place. If you stay too long, then you need a tow behind for around town. Because breaking camp to go get ice and or beer sucks.

**waxman** · 12-12-2021, 06:27 PM

Originally Posted by fatnslow

Rent one when you need one.

This. Rent the RV.

**Lvovsky** · 12-12-2021, 06:33 PM

Originally Posted by JayPowHound

but if we are confident in ability to make payments then no issue, correct?

The poor credit isn't from anything recent.. just still paying from stupid decisions in our 20s. Month to month right now we're good and wouldn't take on anything we couldn't make work.

Shit happens. Health. Recessions. Etc. Separate loan for the RV will only put RV at risk. Any loan on the house puts house at risk.

**riser4** · 12-12-2021, 06:41 PM

How bad we talking on the credit score? I would not be afraid of anything in the upper 600s. It happened to us through some unfortunate timing. We had to pay a little higher interest for a while. Time fixed it and we paid off and or refinanced the affected loans. We didn't get denied.

**JayPowHound** · 12-12-2021, 06:50 PM

Realistically we're talking 30+ nights / year. Full family of 5 + dog. Not necessarily xc, but Mass to Dax, DC, SC, etc..

A trailer doesn't compute, as that many hrs on the road will be way more civil with some space for the kids in the back..

Still unsure, but that's the current thinking.

**Mustonen** · 12-12-2021, 06:54 PM

An RV is a toy I’d pay cash for, and if I can’t pay cash for it I probably can’t afford it. I’m on team rent, but you do what makes you happy. YOLO.

Originally Posted by Lvovsky

That ^^

And if/when you start shopping for a loan, every actual application will ding your credit score a little bit. Keep that in mind when shopping around.

True to an extent. Like inquiries count as a single inquiry over a rolling 30-45 day period. So, shop around at the same time and you won’t see any big long-term impact. Inquiries are a pretty minimal part of your score anyways. 5 to 15 points territory.

Originally Posted by JayPowHound

Does a 50-70k loan that we could absolutely make payments on really put a 500k+ house at risk?

(Serious question)

Not really. I mean, technically, but it’d never really get that far unless you just stayed on the couch and ignored all the mail.

Originally Posted by riser3

Usually time heals most credit scores. And paying off outstanding debt. So if yours hasn't healed, then there are probably details you don't want to share online. I'm by no means a financial advisor. You probably want to talk to one. A real one. They can help. And definitely don't call those numbers on TV. Do either of you have an employer that offers financial advisor services as a bene? Mine does. Don't use the one at your credit union that wants to sell you products. You need someone who is paid to give advice. And do you know your current scores or are you guessing?

Don’t call the numbers. Start by paying off all credit card and other revolving debt. Make sure everything else is current. Paying off installment debt early won’t do much for you, though. If a collection or past due loan is more than 3 years (ish) delinquent, don’t touch it. If it’s more than 2 years delinquent, you might consider not touching it.

And then time……

Unless you have some looming financial imbroglio like 120K in credit card debt or a rash of collections, there isn’t a lot else to do. An advisor might have more ideas for things like how to build a budget so you can buy an RV in 5 years without financing, but they won’t be able to tell you much in re: building your credit score that I didn’t outline above.

**Conundrum** · 12-12-2021, 06:56 PM

Hard to put a price on watching your kids grow up while doing cool road trips. But... we're at peak van, RV, anything outdoor rec related. Buying new will give you crazy depreciation when the RV bubble pops. Really buying anything RV related will probably ding you if/when the RV bubble pops. $70k will buy you 3-400 nights of class C rentals and you don't have to fix, maintain, store, or insure a rental. And you certainly don't have to watch it sit 6-9 months out of the year with a tarp protecting the roof while you're making monthly payments on it.

**Mustonen** · 12-12-2021, 06:57 PM

Originally Posted by AdironRider

Ultimately, you have not provided enough info to really know.

That being said, depending on just how bad your credit is, a HELOC type vehicle if you can get one will have a 5 year timeframe before it rolls to a permanent mortgage, vs a RV loan which can extend to 15-20 years. The RV loan will probably be twoish points higher than the HELOC or refi at a minimum.

Ultimately, you have a little bit of time to improve the rating, so you should focus on that if you can.

HELOCs have all sorts of timeframes. An interest-only HELOC can exist at 70K forever. You can probably afford it forever. Doesn’t sound like fun, especially when that RV is a rusted out husk in the back 40.

RV loans will typically have a 5 to 10 year ballon and a 15-20 year payment. They’re almost always upside down and the first thing that shows up in the bank parking lot when things get tight, which is why you’ll usually pay for it with rate.

So…as worst cases go, I guess you choose between something that will suck but that you can duck out of if you have to vs. something that will probably never really hurt you, but that you’ll never really get past either. If things go well you’ll be fine with either, and if you expect them to go well you should just crunch the numbers and do the one that will cost you less dollars and/or better support the cash flow you need to live your life.

Or you rent the fucking thing.

**dannynoonan** · 12-12-2021, 07:26 PM

Originally Posted by Conundrum

Hard to put a price on watching your kids grow up while doing cool road trips. But... we're at peak van, RV, anything outdoor rec related. Buying new will give you crazy depreciation when the RV bubble pops. Really buying anything RV related will probably ding you if/when the RV bubble pops. $70k will buy you 3-400 nights of class C rentals and you don't have to fix, maintain, store, or insure a rental. And you certainly don't have to watch it sit 6-9 months out of the year with a tarp protecting the roof while you're making monthly payments on it.

I'm on team Rent, bc of precisely all this right here.

And if your living/financial/interests situations change, you just.... don't do that anymore. No leaking moldy albatross that needs a transmission, hanging around that has $27k in payments left on it.