Advantages in Paying Cash for Your Next RV

Posted on | December 7, 2011 | No Comments

You never really owned an RV until you have paid it off.  This means that until you finished paying for your RV and get the title, that is the time you can call it your own.  After you paid off, you can request the person that financed your vehicle to send you the title.  I think it is a little bit crazy that you don’t actually own the RV.  But, I guess it makes it easier for the lender to repossess the RV if you fall behind in your payments.  One of the advantages of paying with cash is that you don’t have to worry about your RV becoming repossessed.

Another advantage in paying the cash is that it is easier to buy RV’s for sale by owner with cash than it is through financing. Sometimes when you are trying to get it financed, you might be denied or you might be asked to pay a higher interest rate than what you are planning on.  All of these things can complicate the situation and make it more difficult to take place.  However if you have cash, it is big and easy to simply trade the cash for the RV.

Another advantage is that you never have to make a finance payment on that RV.  A lot of motor homes for sale by owner can now be bought with a 10 year mortgage.  Can you imagine paying a mortgage on a motor home or RV for the next 10 years? That is almost as much time as it takes you to pay off your home.  At the end of 10 years, your home will probably be worth close to what you paid if not more.  Your RV on the other hand will be worth much less.  It doesn’t seem like it is worth it or like it is a good idea to finance something for such a long time that will only be worth a small fraction of its value by the time it is paid for.  It not only seems like a dumb idea to lend money on a motor home, but it also seems like a dumb idea to our spend money and have to pay a higher interest rate on it over the next 5 to 10 years.

Comments