Question about financing older coaches

Topic: Question about financing older coaches (Read 2680 times) previous topic - next topic

Re: Question about financing older coaches

Reply #50 – May 30, 2019, 03:57:55 pm

There are plenty of nice older coaches.. The non slide options are roomy also.. .. Interiors on the older ones are nice and they are reasonably priced for frugal buyers.. Some good deals out their..

Yes his was a a great deal but no go none the less.. Sometimes it works and sometimes it doesnt. If I told you what I paid for mine it would blow your mind but I have put several thousand into it..Its my baby.. I call her the Mistress.. She puts the UP in my Giddy!!

Re: Question about financing older coaches

Reply #51 – May 30, 2019, 04:15:09 pm

Slides are pointless, especially for one that is boondocking or living in tight quarters. More maintenance too.

A 2000 or older Foretravel without slides can be had for 40-50k +/-, maybe less.

I prefer having the oldest and least flashy looking RV when I am parking in cities.

Re: Question about financing older coaches

Reply #52 – May 30, 2019, 04:25:50 pm

Quote from: niteowl099 – May 30, 2019, 02:58:43 pm

I hope it hasn't seemed like I am being defensive...

And I hope you don't think we were being obstructive...

I read all the comments and suggestions made to you in this thread. I thought they were a fairly reasonable response to your "proposed" deal. But this is from the viewpoint of a old man who has made a lot of financial mistakes in his life.

Personally, I think your basic plan sounds fine, but it certainly doesn't require the purchase of a $100k coach. You could spend half that amount and still buy a very nice preowned Foretravel. It could be just as nice inside and out, and just as comfortable to live in. Some of the members of this Forum have started out with older, less expensive models. After they gain valuable experience and a better understanding of what they want and what they need (which are two very different things), some have decided to move up to a newer, fancier coach. In some cases, they lost very little money when they traded up.

Anyway, we wish you luck in your search, and stand ready to answer any questions that may arise as you check out other prospects.

Re: Question about financing older coaches

Reply #53 – May 31, 2019, 10:55:55 am

Quote from: Chuck & Jeannie – May 30, 2019, 04:25:50 pm

Personally, I think your basic plan sounds fine, but it certainly doesn't require the purchase of a $100k coach. You could spend half that amount and still buy a very nice preowned Foretravel. It could be just as nice inside and out, and just as comfortable to live in.

This is a great point. Why spend 100k or more when 30-50 will get the same thing? The interiors will be nearly identical. From the inside out, few would know the difference. When approaching a significant life change that has many what-ifs, it's best to risk the least amount of $$$$ in case one must bail.

Re: Question about financing older coaches

Reply #54 – June 01, 2019, 07:30:09 pm

Most everyone likes what they have, including ourselves.

For us and from or experience, agreeing what Krush said about all being similar in many ways, our sweet spot is 1997 through 2000 U270 36'.

Simplicity is our goal with longer length & more features adding unnecessary complexities for us.

Re: Question about financing older coaches

Reply #55 – June 01, 2019, 08:29:52 pm

We all have a 'sweet spot'. When I first started looking for a FT, I narrowed it down to a 36' GV U-240 '93/'94/'95. Took me a year of searching, but I found her!

Re: Question about financing older coaches

Reply #56 – June 02, 2019, 08:44:50 am

Slide no slide , I like them all and may have one of each by years end.. who knows, just having a good bus and having it on a long stretch of good highway is a beautiful thang.

Re: Question about financing older coaches

Reply #57 – June 02, 2019, 12:16:57 pm

My offer still stands to finance an older coach. 5K down.

Re: Question about financing older coaches

Reply #58 – June 02, 2019, 01:57:06 pm

For California residents (& maybe other states, too ??) we heard that if a vehicle is delivered out of state (Nevada ?) and kept out for a period of time (6-months ?) when it comes back into California, legally there is no sales tax owed upon first registration.

Out of state documentation would be very important.

We have also heard that some may occasionally temporarily bring the vehicle back into state without declaring the entry.

We are not CA residents so we have no first hand knowledge.

Re: Question about financing older coaches

Reply #59 – June 02, 2019, 02:12:53 pm

One year. Used to be 90 days. Did a lot of out of states back when

Re: Question about financing older coaches

Reply #60 – June 02, 2019, 03:09:46 pm

Even at 1-year, it still has value for almost/full timers & others. Gives one an incentive to get their dream going, with a full year of traveling with their new coach. Or if buying while still working, store it in Nevada for a year.

Do other states have something similar on their books?

Re: Question about financing older coaches

Reply #61 – June 02, 2019, 03:17:29 pm

Owned a new coach for 10 years with four slides sold it in 2014 for 1/3 of what I paid for it. Deliberately bought a 1995 U320 FT well maintained with no slides. Love it built right when new!

If you pay cash for a Foretravel that is depreciated out you will come out ahead given interest rates on savings, in lieu of newer rv depreciation and loan interest cost!

Re: Question about financing older coaches

Reply #62 – June 02, 2019, 05:56:53 pm

Quote from: Barry & Cindy – June 02, 2019, 03:09:46 pm

Even at 1-year, it still has value for almost/full timers & others. Gives one an incentive to get their dream going, with a full year of traveling with their new coach. Or if buying while still working, store it in Nevada for a year.

Do other states have something similar on their books?

If you are a California resident, how are you going to get "one full year of traveling" in the new coach unless you register it? You have to have tags on it from some state. I guess you could store it in a barn for a year, but who wants to do that with a brand new coach?

AFAIK, In Texas, when you register a coach for the first time in your name, you pay the tax. Doesn't matter how long you have owned it, or where it came from, or where it has been stored. Tax is a percentage of either the purchase price, or the "presumed value". See link below. On a 25 year old or older coach, tax is based solely on purchase price. If you do a cash deal with the seller, they only have your word for what you paid...

TxDMV.GOV - Standard Presumptive Calculator

Re: Question about financing older coaches

Reply #63 – June 03, 2019, 01:16:37 am

Each state has a "trip permit" that allows either a one way or round trip use of that states highways for a set fee.

Versus new coaches sales taxes the use of the permits for the then 90 day period is entirely legal.

I had the state of California Dept of motor vehicles and the state of California franchise tax board in my office 30 years ago and they asked me what I was advising customers to do.

I repeated word for word exactly what I had been telling my customers what they needed to do to legally avoid paying sales tax.

The two gentlemen shook my hand and stated I was entirely correct and that I had found a legal loophole in their systems and they were not going to change their system for a small number of motor homes.

At $10 for a trip permit it was cheaper to use a permit on a daily basis to drive a $4k plate fee otherwise coach.

Had a few rebels actually do exactly that.

I delivered the coach across a state line. Notarized delivery receipt. Trip permits from every state the customer intended to travel through.

larceny made deals, great fun.

Personally made many dozens of out of state deliveries to ehrenberg az or Vegas.

Or took coach at NAC and kept a log book and receipts of use out of state on trip permits.

Then pay plate fees when back in Ca.

Re: Question about financing older coaches

Reply #64 – June 03, 2019, 04:40:48 am

Never rely 100% on what others tell you, that includes me.

Be responsible for your own research thru the governing body (In the case of CA that would be the CA Franchise Tax Board.) The reason, ultimately you are responsible for the tax, penalties, and fees. Some states have 100% penalties for sales tax, use tax, and fees.

Laws change, ie., I've seen CA go from 90 days to 6 month to 1 year, and back and forth. Often states do not count rv days in storage, therefore not being used. Laws have changed regarding reentry to the state during that term whether you could or could not.

I've worked in CA, OR, and AZ selling rvs for almost 50 years. In that period I was at different times a licensed dealer or salesperson. I've always, in the case of CA, referred buyers to the CA Franchise Tax Board for their information. When I worked in CA they had a law on the books that if you were soly trying to avoid sales or use tax doing something, you were violating that law and subject to the sales or use tax. So often I would have CA judges, and CA highway patrol officers state, "I am not doing this to avoid the sales or use tax, I will be using the rv out of state for xx number of days. I also saw CA go back and forth on whether during that time you could enter CA with the rv.

Remember, you are the one ultimately responsible for taxes, fees, penalties, etc., do your research.

I've attached a CA Tax Buyers Guide, a download from the Ca Board of Equalization site today, that also lists their phone number at the end.

Do You Owe Use Tax? | California Franchise Tax Board

Re: Question about financing older coaches

Reply #65 – June 05, 2019, 11:58:13 pm

Only answering the original question about financing a older coach. Not only no, but HELL NO. Don't even think about it. Don't do it.
If you can't afford to pay cash in some way, or take a loan from a IRA, or borrow from a rich uncle, or sell something you own to get the cash, then its a bad idea. As others have said, buy a smaller older one. Pay cash. The cost of ownership is high, no reason to make it higher with more taxes, more interest, and more depreciation. I believe, the minute you do something like that, you will regret it.
Lots of older coaches come for sale on these forums all the time. Some good, some maybe not as good. Take your time look around, you will find what you are looking for, and if not, then maybe your not meant to at this point in your life. And there are a lot of RV's out there, not foretravels for a lot less. If cost is the issue.
Good luck with your choice.
Bob

Re: Question about financing older coaches

Reply #66 – June 06, 2019, 12:21:10 am

Quote from: Bob and Julie – June 05, 2019, 11:58:13 pm

Only answering the original question about financing a older coach. Not only no, but HELL NO. Don't even think about it. Don't do it.
If you can't afford to pay cash in some way, or take a loan from a IRA, or borrow from a rich uncle, or sell something you own to get the cash, then its a bad idea. As others have said, buy a smaller older one. Pay cash. The cost of ownership is high, no reason to make it higher with more taxes, more interest, and more depreciation. I believe, the minute you do something like that, you will regret it.
Lots of older coaches come for sale on these forums all the time. Some good, some maybe not as good. Take your time look around, you will find what you are looking for, and if not, then maybe your not meant to at this point in your life. And there are a lot of RV's out there, not foretravels for a lot less. If cost is the issue.
Good luck with your choice.
Bob

Feel the same about a sticks and bricks?

Re: Question about financing older coaches

Reply #67 – June 06, 2019, 02:01:40 pm

Quote from: DavidS – June 06, 2019, 12:21:10 am

Feel the same about a sticks and bricks?

No David of course not. Mostly, and historically, a sticks and bricks house, better known as real estate appreciates. Over time it is worth more money than you paid for it, although when you factor in the cost of ownership, taxes, insurance, maintenance, and the like it gets a little muddled. But a RV, car, bus, boat etc usually only depreciates. Also a mortgage is usually the largest investment a family will acquire, which is why the banks allow a 30 year mortgage. It's gotten out of hand though. And almost brought the whole house of cards down. But then I'm not telling you anything you don't already know.
But paying over time, with interest on a depreciating asset is never a good idea financially speaking. But then we all don't always make the right choices on what is the best for us financially. Sometimes we go with our gut feeling, what we want now, our dreams or desires. Sometimes it works, sometimes.. not to well. But he asked, and that was my take on it.

Re: Question about financing older coaches

Reply #68 – June 06, 2019, 02:32:14 pm

Jacks comment about use versus storage may be important depending on your states laws as he posted.

I used to kid the ca customers when it was 90 days to touch the door handle while it was parked. Storage is a relative term.

I had my customers who came back into ca for service during the 90 day period use trip permits for the use of the highway system for that limited time. I seem to remember service was allowed during the 90 day period

And keep a log book and some receipts.

Re: Question about financing older coaches

Reply #69 – June 06, 2019, 02:36:15 pm

I'm past 70 and live a pretty good life. I've always been self employed and I've worked a little harder when I was under the gun somewhat. Making memories has always been more important to us than having money in the bank.

I'd never advise someone to go in too deep for something as frivolous as a coach but we've spent somewhere in six figures over the years on coach expense and wouldn't take what we've spent for the memories.

Every situation is different. Just be careful and don't get into a situation you can't afford to buy yourself out of if the bottom falls out.

Re: Question about financing older coaches

Reply #70 – June 06, 2019, 02:38:34 pm

Quote from: Bob and Julie – June 06, 2019, 02:01:40 pm

No David of course not. Mostly, and historically, a sticks and bricks house, better known as real estate appreciates. Over time it is worth more money than you paid for it, although when you factor in the cost of ownership, taxes, insurance, maintenance, and the like it gets a little muddled. But a RV, car, bus, boat etc usually only depreciates. Also a mortgage is usually the largest investment a family will acquire, which is why the banks allow a 30 year mortgage. It's gotten out of hand though. And almost brought the whole house of cards down. But then I'm not telling you anything you don't already know.
But paying over time, with interest on a depreciating asset is never a good idea financially speaking. But then we all don't always make the right choices on what is the best for us financially. Sometimes we go with our gut feeling, what we want now, our dreams or desires. Sometimes it works, sometimes.. not to well. But he asked, and that was my take on it.

Some need depreciation.. Motorhome is a write off in my state.. I use it.. If he has no other property he might need the write off also if its permissible? I think its all relevant .. I am sure you use the write off on your house as best you can squeeze and if not that would be financially irresponsible one would think. So their is a close correlation to the 2 in some conditions? No?

I bet you would be hard pressed to find properties that appreciated during the real estate crash.. Some took 7-10 years to recoup some might not have without upkeep and so on. Smart? Buying in a bubble? Time will tell but probably not. Seen people upside down 200k on their houses ..

SOmetimes .. some people just dont care and have made it and it works.. Not sure on the OP but I have seen it..

Affiliate Notice