"These Numbers Are Just Horrendous" ($43,000 Upside Down)

Brought to you by the EveryDollar app. Start budgeting for free today. I owe $63,000 on an RV that's worth about $18,000 to $20,000. How did that happen? Well, I'm 25 and when I was about 23 I made a dumb decision and bought an RV and lived in it for about six months and now I've bought a house and I have nothing to do with that RV. Now I'm saying the RV actually, you bought it for how much? So when I bought it, it was a $68,000. How long ago? Three years ago. So in three years, it lost $52,000 in value. Yes, sir. Okay. Based on what calculation, what they offered you for it at the dealer or what the actual market value is if you try to sell it to an individual? Uh, I've done both. I've looked at selling it, um, on Facebook, those types of things. And nobody's willing to give over $20,000 in the RV dealership. The two that I've taken it to have only offered me about between 18 and 19,000. Well, if they're willing to give you $19,000 for it, they're able to sell it for 27 somewhere. Yes, sir. They're not going to give you 19 for it when nobody is giving more than 20 for that. So your first Facebook thing, that part of the test failed, but we know what wholesale is because two dealers have offered you basically the same thing. Yes, sir. And you owe how much? I owe $63,000. There's a little bit of complications on the, why I owe that much, uh, you know, only a $5,000 difference. Um, they just added some more onto my loan. We had some complications with insurance. I didn't realize I didn't have insurance. So, uh, for about a month and they decided to throw on an extra $5,000 on my loan. Forced place insurance. Yes, sir. Have they taken that back off now that you've gotten them policy in place? Yes, sir. If it's not off, uh, I still going to have to pay that $5,000 is what they told me. No matter what for a month. Yes, sir. I don't know what calculations or how they came up with that number, but yes. What do you make a year? Uh, my wife and I, we make about $130,000. How much money do you have in savings? Not very much. We are, we're at the very bottom of the debt snowball right now. Um, and you bought a house. Yes, sir. While you're broke. Yes, sir. Where, uh, we're, we're, we're not doing too good right now. I don't know how to get you out of this, Michael. I mean, you'd have to borrow the $43,000. Um, and just have an unsecured loan of $43,000. Um, who holds the loan on this? Uh, Alliant credit union. And what's the interest rate? The, the bad part is I, I'm not only paying the monthly payment, which is $722. I've also got a hundred dollars storage fee and then $115 for insurance every month. So I'm paying about approximately $950 a month for something that I'm not using at all. Yeah. Um, I, I, I truly do. I'm stumped. I don't know how you get out of this. Um, other than you just pay it down or, or sell it. And if you can, if you have any credit left at all, um, and you can borrow the difference or work with a credit union to sign a note for the difference, at least the bleeding would stop because you'd have no insurance and no storage fee and sell the thing for 20 grand and sign a note for 43 and, um, you know, maybe negotiate some of that away because they got there, they, they don't have any collateral and their collateral is gone. And so, and it's going, it's going away really, really fast. Um, wow. This, these numbers are just horrendous. I mean, there's the most, most things that have wheels and motors go down in value, but apparently RVs are the worst of everything out there. It was already five years old when I bought it. Um, so it was just a, it was just all around bad. So that means there's a hundred grand when it was new. Approximately eight years later, it's worth 20. Talk about burning money. That's like lighting a hundred dollar bills on fire and just standing there, hold them to your hands, get hot. Wow. Um, yeah, the only thing I know to do, I think I would stop the bleeding by selling it and signing a note for the difference. If you can talk to credit union and doing that, uh, and the way you do that is just say, Hey, look, guys, I'm getting ready to hand you the keys to this thing back. Y'all can have it. You can have your little $5,000 insurance charge. First place insurance is valid, uh, but I'm not paying it and you guys can just sue me. And, uh, or I'll sign a note for the difference and work my way through it. Cause I'm the idiot signed up for this trip and I'll get to take it with you, but you're going to have to help me by letting me get rid of it. And whatever it brings, we'll put that on the note and I'll sign a note for the difference. And that gets rid of the insurance bill. And that gets rid of the, uh, uh, storage bill and everything else. But also you've got to start thinking more clearly on your next moves on things. Cause you wouldn't bought a house in the middle of this. And that really puts you at further risk. It's, it's added to this mess. And you bought a house by the way, where you can't park your RV. Yeah, that's right. You know that you already owned before you bought the house. It's a lot of work in your future. The good news is you're young. Uh, and you guys need to be working multiple jobs and get after this thing, like a long time to clean up $43,000. It's like $43,000 in credit card debt. How fast can you do it? Making 130, you can do it in a year. Um, and you don't pay it off in a year. And be done with it. And then you just get to look back and go, yep. The dumbest thing I ever did in my life was that RV thing. And, um, the good news is I don't have to do that dumb thing again. I'll have to find something new to do. Dumb. Why, why does the, we've talked about this many, many times. You have a hint, a hint as to why they drop in values because they're bringing out new models all the time. What, what would the cause? I don't think the market is large enough. I think the resale market is very limited. Aha. The number of people buying a, in this case, eight year old RV. That's what it is. You're right. Would be, there's no demand. There's no demand. And so it's not, you know, it'd be like a 20 year old ski boat. You know what I mean? It's really difficult to move that product. Um, now I'm not talking about an expensive ski boat, like a Mastercraft. I'm talking about just a, you know, Stern drive, baby, you know, your old Bryant's or something like that. Um, that thing just deteriorates and nobody wants it. They'll just spend a little bit more and go get a new one. And so that's, I think that's what's going on here, but I. Good Lord. All of you listening that we're thinking about ever buying an RV. You should have just went. I don't think so. That's right. I was just one. I mean, I've, I've bought almost everything else with wheels and motors. At one time or another and have done some really, really dumb deals on those processes. But the one I've never bought, I never bought a, never bought a camper. Never bought an RV. Somehow I managed to avoid that one mistake. I just can't see you hauling down 65 and a giant RV. You don't see me. People driving by going, I think that's Dave Ramsey. Driving that Winnebago. You're waving at people as they drive by Chevy, chasing it. I don't know. I, I, I'm not a snob. I just never had that one. And I never bought a trailer. I never bought a mobile home either. That's another one. Same concept on the mobile home as well. Most people are buying something new. So therefore low demand. So, and they just go down in value, like rock horrible, horrible. You can't get out of them. You get stuck in them and poor Michael's just stuck, stuck, stuck. Well, you are wise to be asking questions about it and to be gathering information and try to make the best decision you can, and then just roll up your sleeves and live on nothing. And no, no eating out, no vacations until we get the RV paid off. That's an irony. No vacations till we get the RV paid off. Create your free every dollar budget today. The simplest way to budget for your life.