Interest rates

[merle&louise]

I wish!!!

Flying J in Fort Pierce Florida, cash price this AM $3.91.9....Thats with a nickel discount for cash!!!

Mike K

Hey Mike, the Flying J in Pembroke NY, I-90 exit 48A has the hightest priced diesel (@ a Flying J) in the country: $4.059

[Joe Cannarozzi]

Sorry to disappoint you but in the Chicago suburbs it is now 4.09 to 4.19 at the high end and nothing under 3.99.

I have a receipt from last year Feb 4 from the Flying-J Gary, Ind., that would be a short 13 months ago and it says 1.97

It is a good thing that I get so much enjoyment fixing and upgrading it, know what I mean.

[garyde]

Regarding interest rates; ahem! Loc and Darl were refering to the spread and long term rates and short term rates. I had heard there were some options regarding fixed rates and variable rates with RV loans. Have those disappeared? Also, those advertised rates usually are reserved for those with credit scores of 720 or more. If you are re-financing and you have a depreciating asset, is refinancing even a good idea.

[Jon Wehrenberg]

Owners and potential owners are likely concerned about the rising price of fuel. I hope everybody puts it in perspective.

If we presume the average coach covers 15,000 miles annually (that's a high number) and it gets 7.5 MPG about 2000 gallons of fuel will be burned. A year ago the prices were at least a dollar less than they are now so we are faced with spending $2,000 more than we did a year ago.

But let's look at some other numbers. The market has apparently slowed down if the inventories are any indication, so any coaches for sale have dropped in value considerably. The coaches we own have depreciated considerably. That drop in value is because of normal depreciation, plus the fact that there appears to be more coaches for sale than there are buyers. I hate to think how much depreciation there is on a new coach. It makes the cost of fuel look like chump change.

If a Prevost owner is going to be strapped because fuel is expensive he is going to be shocked at how expensive other things have gotten. Tires have risen about 35% in three years. Batteries have gone up in price. Oil and antifreeze has increased in price. But the bottom line is that no matter how high fuel and maintenance has become it is a minute percentage of the lost earnings on invested capital, or the interest charges on a loan, or depreciation.

I think now is the time to buy a coach and to enjoy it because a lot of sellers are thinking negatively, and buyers are in command.

[Joe Cannarozzi]

Jon you are a true optimist with a whole bunch of salesman mixed in. I think you actually have decreased your tire costs thus offsetting the cost of fuel further. The 100 dollars spent for POG also comes to us in this manner.

Unfortunately if I input your 15000 miles and use my mileage 5mpg and the 2 dollar increase in the cost of fuel over the last year that would be a 6000 increase in the last year for that expense if we travel the same distance. No matter how optimistic I try to be, for folks like us, that would be a hard one to swallow. I think many will begin to either travel less or take shorter trips to offset the expense. Did you notice how few are going from West to East or East to West for the rallies?

It has me second guessing the way we financed ours. We chose the 5 year plan instead of the 10 or 20 to save the all juice and looking at it optimistically that is actually also helping to off set the rising cost of fuel, but it sure aint helpin much right now today.

Lately I have been reminding myself anything that is easy to get usually ain't worth nothin.

Definitely a buyers market look what that girl got that Marathon for on E-bay.

I would not be surprised if fuel is 5 a gallon by this time next year. Looking at that optimistically it will then be very easy for us to figure fuel costs when taking a trip.

[ajhaig]

Gary,

I don't know what loan products are available for coaches but as a general rule being leveraged to a depreciating asset is never a good thing.

AJ

[flyu2there]

AJ,

You are spot on!! Never smart to finance a depreciating asset unless inflation outpaces the depreciation.....that will never happen! That being said, it may be ok if you can charge it against a business, but then again that too has to make sense. To cite an example, lots of really big players are dropping their own corporate jets in favor of fractional ownership because, at the end of the day, it doesn't make financial sense to own one outright in the current economy.

A number of coaches on the market today are corporate owned, I reference the last paragraph and the much discussed one that was recently sold (maybe) on E-Bay......that's good for a new thread. There are some great buys out there and all of them will bend, however you must be in a position to pay cash and to close the deal immediately....probably the reason that the TBC is thriving!

I still remember the first house that I bought. I looked at the closing statement, I believe I paid about 100K in the late 60's and saw what the lender was going to reap, had I held the note to term. GAWD!!

Now the diesel issue.....need a new thread on that one too!! I think you East Coast guys need to convert back to coal and free up that heating oil for our tanks. Bio diesel, 3.00 a gallon here... if you don't mind your tail pipe smelling like French Fry's. Jet fuel may be the answer...we shall see....


John

[Petervs]

Jon, Your logic is so faultless that it sounds like you have talked yourself into joining the TBC yourself!

Post some pictures of the new ride as soon as possible please.

[truk4u]

Hey Jon Boy, that means we're looking at about 585 gallons of go juice to get to Pahrump and back, at 3.80 per gallon, or 2,225.00 to hobnob with the left coast Poggers! Maybe we should just ask for pictures and you could send the jacks freight "collect"

[dalej]

Hey you guys, it won't hurt to run to Nevada since the April Rally is out your back door!