Financing for a new van? Yikes
- Thread starter Steve_382
- Start date
I also believe in the buy it with cash motto and "don't finance anything you don't need". Only use financing if it is going to bring a greater return over the terms of the loan. Make the bank work for you rather than working for the bank.
There is more adventure than can be had in a lifetime with a commuter car and 500 bucks worth of camping gear. Maybe 500-1000 if you buy a few fancy items and waterproof clothes but still not necessary. Cheap rain coats or a vinyl poncho can go a long way. There is a lot of quality cheap gear at thrift stores. Also modern car camping sleeping pads are amazing these days.
This site is mostly dedicated to high end expensive stuff. It's cool but there is also a lot of marketing involved and it's easy to fall in the trap of thinking it is needed to get out of the confines of ones environment.
There is more adventure than can be had in a lifetime with a commuter car and 500 bucks worth of camping gear. Maybe 500-1000 if you buy a few fancy items and waterproof clothes but still not necessary. Cheap rain coats or a vinyl poncho can go a long way. There is a lot of quality cheap gear at thrift stores. Also modern car camping sleeping pads are amazing these days.
This site is mostly dedicated to high end expensive stuff. It's cool but there is also a lot of marketing involved and it's easy to fall in the trap of thinking it is needed to get out of the confines of ones environment.
desertsherpa
New member
The Storyteller used market right now is interesting. Current owners think they have a asset that has appreciated, but that's a denial that they bought during high demand.
A bunch of people bought those things at the $155k MSRP level, and Storyteller doesn't not allow dealer markups, so the only real price difference dealer to dealer is buyers effective sales tax.
However, that $155k price was if you were in line already, and in the past 18 months, people payed a $30k premium to skip the line.
With the market of 2022 showing people will pay $180k for one, Storyteller further raised their margins.
Some of those rigs are now coming back onto the used market, and the owners, if they are on a 10-20 year note, are probably not in a good place on that loan. If in early 2021, you financed at 10% down, and 20 years, 6% rate, you are now sitting at a loan value in the $140s-150s. So, sellers want a sale price around $155k/160k to feel like they broke even on that 10% down.
However, these are, at the end of the day, a class B , and a depreciating asset. With the fed holding interest rates high, new buyer suppler is limited.
There is a new Storyteller Beast on most every dealer lot across the country. I have seen 2 vans being pulled off consignment lots because of embarrassing market response.
It will be interesting to see how much of that "I need it now" premium translates to used sales.
A bunch of people bought those things at the $155k MSRP level, and Storyteller doesn't not allow dealer markups, so the only real price difference dealer to dealer is buyers effective sales tax.
However, that $155k price was if you were in line already, and in the past 18 months, people payed a $30k premium to skip the line.
With the market of 2022 showing people will pay $180k for one, Storyteller further raised their margins.
Some of those rigs are now coming back onto the used market, and the owners, if they are on a 10-20 year note, are probably not in a good place on that loan. If in early 2021, you financed at 10% down, and 20 years, 6% rate, you are now sitting at a loan value in the $140s-150s. So, sellers want a sale price around $155k/160k to feel like they broke even on that 10% down.
However, these are, at the end of the day, a class B , and a depreciating asset. With the fed holding interest rates high, new buyer suppler is limited.
There is a new Storyteller Beast on most every dealer lot across the country. I have seen 2 vans being pulled off consignment lots because of embarrassing market response.
It will be interesting to see how much of that "I need it now" premium translates to used sales.
AbleGuy
Officious Intermeddler
“Some of those rigs are now coming back onto the used market, and the owners, if they are on a 10-20 year note, are probably not in a good place on that loan. If in early 2021, you financed at 10% down, and 20 years, 6% rate, you are now sitting at a loan value in the $140s-150s. So, sellers want a sale price around $155k/160k to feel like they broke even on that 10%.”
Taking out a 20 year loan on a depreciating asset you’ll use for only a few years is about the dumbest financial advice anyone could ever follow…
If you’re rich enough to buy one of these for cash, that’s one thing. If you aren’t rich, rent one as needed… or better yet, follow the great advice of the experienced folks here who recommend to start out simple and cheap.
It’s going to be the overall experience of being out on the road exploring the world that counts the most, not the pricey glam of your debt burdened flashmobile.
Taking out a 20 year loan on a depreciating asset you’ll use for only a few years is about the dumbest financial advice anyone could ever follow…
If you’re rich enough to buy one of these for cash, that’s one thing. If you aren’t rich, rent one as needed… or better yet, follow the great advice of the experienced folks here who recommend to start out simple and cheap.
It’s going to be the overall experience of being out on the road exploring the world that counts the most, not the pricey glam of your debt burdened flashmobile.
plh
Explorer
Yep, buy land or a vacation home on land if you don't want a depreciating asset. Things that are mobile like a car, van, RV, boat do not appreciate, unless it is some rare thing.
ThundahBeagle
Well-known member
Yikes: one of my favorite exclamations. Unfortunately, over the last few years, I've had call to utter "Y-yikes" more and more often
calicamper
Expedition Leader
calicamper
Expedition Leader
Definitely the way to look at it. But if you only have $50 in your account $1000 for any tent is pretty dumb. I’ve camped with a guy that could pay cash tomorrow for 5 vans and still spend a yr cruising the Mediterranean. He slept in a Cabellas ground tent that sits in his L3 he picked up at Auction 11yrs ago?
The perception of how the truly wealthy really live is distorted by marketing and social media.
Kevin108
Explorer
Oh, for sure. Don't go broke trying to get the latest and greatest!
My RTT is from 2015. My vehicle is from a decade before that.
Staying clean and comfortable these days is absolute off-road luxury to me.
I started out riding trails and sleeping on the bench seat of my pickup.
My RTT is from 2015. My vehicle is from a decade before that.
Staying clean and comfortable these days is absolute off-road luxury to me.
I started out riding trails and sleeping on the bench seat of my pickup.
86scotty
Cynic
Hey, does anyone remember in about 2007 when Sprinters first hit the market and they were this new, tall 'Euro' van that no one liked at first but quickly got used to? Now every brand but Chevy makes them.
Anyway, let's move forward 10 years on that Sprinter, which would put us about 5 years ago, in 2017 or so. Around this time, when these Sprinters were 10 years old, is when they started to looked like clapped out, rusty, space-mobiles that only old plumbers with thick glasses and greasy hair still drive.
My point is that #vanlife and these silly overbuilt builds with silly over-the-top prices will not be $1k-per-month cool in 10 years, much less 20. Humans are WAY too trendy and it's speeding up by the day.
Anyway, let's move forward 10 years on that Sprinter, which would put us about 5 years ago, in 2017 or so. Around this time, when these Sprinters were 10 years old, is when they started to looked like clapped out, rusty, space-mobiles that only old plumbers with thick glasses and greasy hair still drive.
My point is that #vanlife and these silly overbuilt builds with silly over-the-top prices will not be $1k-per-month cool in 10 years, much less 20. Humans are WAY too trendy and it's speeding up by the day.
DirtWhiskey
Western Dirt Rat
Just wait a second, be patient and be willing to travel to pick up your rig. I'm seeing lots of fully outfitted rigs selling at a loss and it will get worse (better?). Do the calcs and if you can afford it on a monthly basis, take the plunge. Refi if/when rates come down if you can.
The main discounts I'm seeing isn't the unit selling price level. It's on improvements add-ons where I'm seeing the major discounts. So newer vehicle with a bunch of mods that sellers can't recoup on. Vans are a different beast than trucks for sure but it will hit that side when people realize that they are the highest bidders on their vans.
The main discounts I'm seeing isn't the unit selling price level. It's on improvements add-ons where I'm seeing the major discounts. So newer vehicle with a bunch of mods that sellers can't recoup on. Vans are a different beast than trucks for sure but it will hit that side when people realize that they are the highest bidders on their vans.
Maybe reality is starting to set in. StoryTeller just sent out an email with at least a little discount. Of course, they raised prices by 11% last fall, so this doesn't take it all back.
For a limited time – April 20 - May 20 only – we’re thrilled to be able to offer these manufacturer rebates when you buy from one of our dealer partners:
For a limited time – April 20 - May 20 only – we’re thrilled to be able to offer these manufacturer rebates when you buy from one of our dealer partners:
- $12,000 rebate on all MODE LT sales
- $4,400 rebate on all MODE 4x4 sales (includes 4x4 Classic, Stealth and Beast MODEs)
Scotty D
Active member
I got that as well , no idea how I ended up on the mailing list
I am a DIY guy and even though I will probably knock together a new van soon , I am not investing 200k in one
Kevin108
Explorer
With low interest rates and a slower rate of inflation, the 2010s was a great time to use credit. Lots of people were able to finance new vehicles, in effect only paying any interest during the first year, and having made money off the loan at the end of 5 years. Yes, the vehicle is a depreciating asset, if you choose to look at it that way, but there is a lot of value in having reliable transportation with modern safety features and driver comforts.