Cracks me up. Do not listen to some RV person, as an accountant I can tell you if you can afford it buy your purchase…any purchase right out. To tell people it is better to pay thousands of dollars in interest payments to “maintain your personal financial status” is not only irresponsible but nonsensical. The current housing situation shows us this way of thinking as we see with Mr. Polk is outdated and gov’t propoganda which has hurt this country and economy in tremendous ways we are all feeling. Mr. Polk reminds me of a Realtor with this quote.

As for the tax writeoff, there are many great articles that will explain to people how little the Tax writeoff on interest payments truly is. Please keep your articles to RV’s and not finance. But of course you did state it was your opinion…and it certainly shows that there was no factual basis for it.

It’s always worth seeing what kind of APR deal you can get approved for directly from the bank instead of opting for the dealership financing.
Carol @ http://www.lazerloan.com/

I had also once read, it was good to purchase a used RV as so many of the bugs can be worked out, over the first couple years…

The idea that you can deduct interest payments from your income on your tax return needs to be carefully considered. First, do you itemize your deductions on your income tax return? If you do not itemize, then you can not deduct. Even if you can deduct the interest, it comes off you income not from your taxes. Do the calculation estimate before you finance and see just what difference it really makes in your taxes and your actual pocket money. Create a cash flow budget for the future years that you will be paying the loan back. Can you really afford the RV and afford using the RV?

I do not mean to be so pessimistic, but we must look at the total financial picture. Too many people have gotten too far in debt and have purchased too much on credit. This has led to the housing difficulties and some of the bankruptcies. Realize the depreciation as soon as you sign on the dotted line. The RV is worth 10% to 20% less as soon as you sign.

Knowing this won’t help a potential buyer unless they have a nearby dealer that has established a business relationship with local lenders. Some have, some have not. It’s worth checking because there are bargains to be had, as Mark suggested.

Another point worth mentioning is that many retired or near retired RV’ers have seen their investment accounts shrink over the last months. There goes the RV dream! It is not the best time to cash in stock to pay for a RV. But it is a shame to waste precious years without the new RV, waiting for the stock market to go back up. A good solution to the problem is financing the purchase now and then paying off the loan when the investment account is healthy again. Local lenders can make that happen.

Just be sure and ask about any penalities for early pay-off. I have never experienced any on simple interest fixed rate RV loans in the past.

Very well written article. You covered all the basics and then some. I kept thinking there’s got to be something that I could add, but found nothing except maybe to mention that getting a loan from a Dealer may be easier, but it comes with a price-tag. When I financed my latest (last) RV, the dealer offered me his lowest rate of 7.50% and from an internet (very well respected) broker–who incidentally sold my contract to the same bank the dealer was using (name withheld for obvious reasons) they gave me 6.125%. So this told me that for the “easier” processing of the loan, the dealer was getting quite a sizable kickback.