Want to buy Bluebird

[John McGinnis]

The only similarities between buying a Motorhome and a house are the
commitments required in both purchases, plus the expenses of
insurance, taxes, maintenance & upkeep. Anyone would be correct in
saying real estate is an appreciating asset and a Motorhome is a
depreciating asset. My first real estate purchase in 1980 was for
30,000 and today that same house just recently sold for 199,900.
That is nearly 600% in appreciation. I don't know what a 1980FC35
cost new but I do know it is highly unlikely you would receive 30K
for it today. I do know that if anyone were to finance anything for
20 years at 6% interest on an initial purchase price of 100k, that
person is going to be paying over 70K in interest payments over the
20 year term. On average that person is paying $300 per month in
interest. If they purchase a Motorhome and make payments for 20
years, what will the Motorhome be worth when they make the last
payment? Heck, I know of a guy who is making $800 monthly payments
on an 86FC. He can't afford the fuel, and keeps the coach parked in
his yard, he gave over 70K for the coach 6 years ago and in it's
present condition due to weather deteriation, and deferred
maintenance the coach may be worth 30K and he has 9 years left to go
on his note. At the end of the 15 years what will his coach be
worth? Taking about being UPSIDE DOWN! He will pay over 170K in
interest & principal on an initial purchase of $70,000.
That is the only reason I say don't finance, but anyone wanting
Instant Gratification can self justify financing anything.
Personally, I'd rather take the $800 a month and buy fuel and travel
2500 miles looking at the countryside. It took me 10 years working
hard to be able to write the check, and I'm enjoying every mile alot
better since I'm not making other people money.