Planning for full-timing: Financing vs debt free

[LeslieTX]

My initial thought was to pay cash ($10K max) for a fixer-upper Class C to live in full-time, and restore/repair as funds became available; however, after reading several posts about how much extra cash is often required to get a bargain fixer-upper road ready for full-timing, I’ve having second thoughts about my plan.

I wanted to enter full-timing debt free. Now I’m thinking it may be wiser to get something newer (10 years max), get it financed and stash the 10K for emergency/maintenance fund. I’ll be debt free by time I retire (6-8 years) and figure a $500 monthly RV note is doable (can’t find rent for that anywhere, at least not anywhere I’d want to live!).

I don’t want to wait 6 years to start RVing, so, I’m thinking to finance a sub 5K beater to tinker with and do weekend/summer road trips. That way I can start transitioning to life on the road and be able to do some tinkering/remodeling without having to wait 6-8 years for an RV. I’d either live in this starter RV until it died, or sell it for no or little loss, depending how much I put into it. Afterwards, I get something newer and more reliable to go full time. Any one use this approach to get out on the road?

 

[Van-Tramp]

Newer does not equal more reliable. I have had to do little to no repairs over the 7 years I have owned and used my 1989 van (totaling well under $3000 for all repairs, including tires and oil changes over 7 years) while the 2008 Airstream trailer I currently full time in has about $2000 PER YEAR in maintenance done on it to keep it on the road, and goes through a set of four tires every 10-12 months.

You are also not considering the added costs of insuring and registering a newer vehicle or RV.

My advice; Stay debt free.
Purchase a vehicle that allows you to have a few thousand left over for immediate expenses.
Set some money aside each month for future repairs
Learn to do the repairs yourself as opposed to paying someone else

 

[OutdoorFT]

Really depends on who you ask. Great thing about this place is the realism. You dont need the best and top of the line to be happy. If you asked the other forum Im on, youd think you needed minimum $30k for a unit or else you get junk.

Its really up to chcking wach unit carefully before purchase. Whether financed or in cash, can become a money pit if not careful.

What would I do? Straight cash. 1 less payment you have to worry about every month. Essentially, no rent. If you do not have the means to pay in full, its cheaper to finance one (like you said) than to live in an apt in a less than ideal location (Like I do for $625/month). It really depends on your financial situation, so only you can answer it. No right or wrong, only what you can afford. Best of luck.

 

[mayble]

How much do you really like to tinker?  I learned pretty quickly that I don't like it nearly as much as I used to.  I designed/built/remodeled/mcguyvered all kinds of things over the years and it was all fun, but my heart just isn't in it anymore.  Getting old and lazy, I suppose.
I bought an older, inexpensive RV and learned what I like and don't like about RVs.  I bought an older, inexpensive van and learned what I like and don't like about vans.  One thing I don't like about either is the expense and inconvenience of repairs, whether they be on the house side or the mechanical side of things.  
Now I know what I want - and that it needs to be as carefree and worry free as possible - so I'm not too worried about going into debt for the right vehicle.  I plan to pay if off anyway when I sell the house and cash out the retirement fund, so I'll still be debt free when I hit the road.
What looks good on paper doesn't always pan out in practice.  Buying something cheap to play around with is an excellent way to find what works for you without a huge investment.

 

[Optimistic Paranoid]

If you have to work while on the road - seasonal jobs like Amazon and working in National Parks - being in debt can be a horrible millstone to have hanging around your neck.

But if you're retired and your monthly income can handle the payment easily, I see no reason not to take out a loan to get the vehicle you want.

 

[VanKitten]

I doubt you will find any bank or financial institutions that will write you a loan for a sub $5k "beater".

Even an older RV (10+ years) is hard to finance.

You may find that you end up with a $30k loan at 60 months and 12-%.
For me that would be a budget killer. I would rather keep the money in my pocket and spend my monthly allowance on the repairs and upgrades.