Tuesday, January 11, 2011

More $$$ Stuff

I’ve been working on an RV financing scenario since there is little else I can do regarding an actual purchase right now.  I’ve done my homework and know what I want in a “touring van” - model, features, year, mileage, etc….   I just need to figure out the purchase price I can live with. 

Note: I loathe debt; we are currently debt-free and have been for years.  Because of a genetic predisposition – thanks Dad! – I know I will pay the van off significantly sooner than the 5 years I have plugged into the formula.   However, I still need both a price range and a price limit. And the discipline not to exceed that limit.   

I could wait another year or two and pay 100% cash but my allergy to debt is also mitigated by the fact that I’ve put all my travel dreams off long enough and life is so very short.  And getting shorter.  The pain of finishing up my coursework and writing my dissertation is eased more than I would have thought possible by knowing the open road awaits.  The van is just a means to an end after all.    

OK – to the calculator!

Assumptions: finance at 6% x 60 months with 30K down

50 K = $386/month     ($53,160*)
55 K = $483/month     ($53,980*)
60 K = $579/month     ($64,780*)

* total cost including finance charges

Again, the amount of interest paid is not a big concern as I will pay this off the debt aggressively and early.  But the picture isn’t complete without it.  Note how each 5K increment results in an extra $100/month.   

 
Bottom line: Even if I wind up paying the upper limit, I know I can get a really good used unit for that price.  Great news!



9 comments:

  1. How do you know if you're getting a good price for the RV you want? That's something that I wrestle with and I'm not sure what the answer is. I hope you've figured it out so that I can copy you.

    ReplyDelete
  2. I think the answer to Four Windows question is Shop with your head and not your impulse, and do your homework. There is a lot of information out there if you look for it.

    Actually I have no idea since I have never done it.

    ReplyDelete
  3. All I saw was "wait another year or two" and went into 'da heebie geebies !! LOL

    ReplyDelete
  4. Okay, you piqued my curiosity. What are you looking for with regard to model, features, year, mileage, etc?

    ReplyDelete
  5. ourakeonfreedom,

    A 2006 - 2009 Roadtrek 190 Popular with 35K miles or less.

    ReplyDelete
  6. Kim: My response to your question on my blog is, the salesman and I are playing telephone tag and I think I'm avoiding him right now. I sometimes wonder if it's too big and I should look at Roadtreks like you're thinking about. Then I realize the Roadtrek costs about as much as a Class A and I think I should go for bigger for the same price. AARGH!!!!!

    ReplyDelete
  7. I didn't think that wass possible but that's awesome.

    ReplyDelete
  8. Maybe biased, but RT's of course are my favorite choice :) What I have learned after watching them for many years is that the prices can really fluctuate by area and seller situation. Sometimes when you least expect it, the deal of a lifetime can present itself and is well worth checking out. Many people won't think them possible and pass, but it does happen I promise! Diligent shopping, willingness to travel for the right deal and patience can be worth many $ks.

    In other words, I believe you may be able to find one closer to the bottom of your year range, that is suitable and close enough in price to your 30 down payment that you wouldn't need to finance nearly as much your examples suggest. I would be happy to help you search :)

    You can email me if you want my help with it Kim. It would thrill me to no end to help you get out on the road sooner!

    -Mike
    97 Roadtrek 170P "Taj Ma Trek"
    HTTP://WWW.VanTramps.Com

    ReplyDelete
  9. Mike - you are wonderful! I'm sure I will be in need of your expertise sooner than later.

    ReplyDelete

Let's chat !