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Motorhome Financing Made Easy
Our finance department makes buying your motorhome easy! To make the purchase of your motorhome smooth and enjoyable, we can arrange the financing of your new or pre-owned motorhome and take care of all your title work. We also offer Good Sam Extended Service Contracts - premier service contracts in the RV industry that offer you comprehensive coverage on your motorhome.
Our Program Offers:
- Terms Available Up To 20 Years
- Low Fixed Rates
- No Prepayment Penalties
- Simple Interest Contracts
- Some Loans May Qualify For Our “No Money Down” Program
- Most Loans Qualify As a 1st or 2nd Mortgage for Possible Tax Savings
Flexible Financing Tailored to Fit Your Needs
Cash vs. Financing
The information below discusses some tips to help you determine if paying cash for your coach is the wisest choice, and explains why you may want to consider financing your coach instead.
Benefits of Financing With Motorhomes of Texas:
- Simple Interest Contracts
- No Pre-Payment Penalties
- ACH payment directly from your checking account
- Over 5 Financing Institutions to shop for the best rate
- No application fees
- Terms up to 20 years available
And that's not all...
Interest May be Deductible
Under IRC section 163 (h)(2), a taxpayer may deduct interest on a qualified residence, which is defined as a principal residence and one other residence owned by the taxpayer. In accordance with the IRC, a RV will be considered a qualified residence if it provides living accommodations and the owner spends at least 14 days per year in the coach.
Financial Flexibility
Financing your coach allows you to maintain the flexibility needed to take advantage of new investment opportunities. You also have the financial resources at your disposal in the event that any unforeseen circumstances arise.
Keep your Money Working For You
Financing allows you to keep your current investment portfolio earning interest which could greatly outweigh the cost of financing.
A Look at the Numbers
The following example will help illustrate the benefits of financing:
You are in the process of purchasing a $300,000 motorhome and are unsure whether to pay cash for the entire balance, or put $50,000 down and finance the remaining $250,000.
Let’s assume that current interest rates are at 7% and your current investments have been returning 5% in tax-free municipal bonds. Let's also assume that you are in the 30% tax bracket and have been approved for a term of 20 years on your loan.
The first option is very simple. You pay cash for your coach and own it outright. You no longer have your money working for you and therefore, are earning no interest on your $250,000.
Now let's look at financing your coach and how you would earn thousands of dollars by doing so.
The graph at the right illustrates this example.
 At the current interest rate and assuming you keep the loan for five years (the average life of a loan), your total interest paid to the financing institution is $81,936. Remember though, the interest is tax-deductible, so your actual interest cost is 30% less or $57,355 total. (81,936 x 70% = 57,355)
Because you took a loan instead of paying cash, your $250,000 is still invested earning 5% tax-free on average. Compounded over the same five year period, you have earned $69,070 in tax-free interest from investments.
Comparing the two scenarios, you can see why financing your motorhome has actually earned you several thousand dollars. The total interest earned from investments ($69,070) minus the cost of financing ($57,355) equals a gain of $11,715. You have just earned $11,715 dollars by financing your coach.
To discuss this information or to get started on financing your motorhome, please contact us today for information at 877-495-1114.
This information in no way guarantees approval for a loan or guarantees a certain interest rate or rate of return. Of course you should always consult your investment advisor or accountant to determine which choice may be right for you. Call Motorhomes of Texas today for more information or to get your free quote and approval for financing.
Jason Haskins, Business Manager
Jason Haskins joined the Motorhomes of Texas family in March of 2007. He and his wife, Robyn, are 2003 graduates of Texas A&M University. Prior to joining Motorhomes of Texas, Jason worked as a financial advisor with Fidelity Investments in Fort Worth. When he’s not at the office, Jason is an avid golfer and enjoys waterfowl hunting.
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