Guest Posted April 4, 2004 Report Share Posted April 4, 2004 In my opinion a lot of the RV industry over the last few years has been supported by home re-fis, even though for most the interest is deductible as a second residence. I believe the RV industry is about to leave it's golden years behind in spite of all of the Baby (ka)Boom hysterics. As it is, direct loan terms have become absurd. How does 4.35% fixed for 20 years on $100,000 sound? That's better than a mortgage on an asset that will depreciate faster than the principal is paid down. Some of the crap being foisted off on the public simply won't survive to the end of the payment book either. Most who finance direct are upside down from the get-go and by year 2 are deeply underwater. Yobob: 20 year fixed rate financing on an RV??? Question: What looks and smells older than a 19 year old RV? Answer: NOTHING When push comes to shove, can't you just picture people running out this summer and getting that low interest RV lined up in advance of walking away from their home mortgages, selling everything they own and disappearing into the countryside in their new "home", or better yet, disconnecting that hidden GPS tracking device at the border and heading to Central America for an extended vacation...a very extended vacation. If I were in a business that loaned $100K on a "secured" asset that could wind up on blocks in a jungle 5,000 miles away, I'd be a little nervous about that. "Secured RV Loan" = OxyMoron. Can you say "Grand Theft Auto?" Link to comment Share on other sites More sharing options...
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