Difficulty Financing as a Student

[kendrick.l.j]

You’re not listening! You are trying to justify that financing an Airstream at this time in your life is a good decision. It isn’t. However, paying cash for said Airstream might pay off in the long run. There is a reason why most MD’s are crappy businessmen. She needs to focus on graduating, seeking full-time employment and paying back any student loan. If this is a joint effort then, again, pay cash.
Airstream is not essential housing, it is a toy, a very expensive, toy. There are other, better ways to secure housing than FINANCING an Airstream.
Personally, I could never agree with anyone FINANCING any Airstream. It is a reward for years of gainful employment and years of saving and successfully managing that savings.
One last dose of reality, have you actually been accepted into Medical School? Will you actually Graduate from that school? Will be accepted into a residency program? A good 50% of first year med students will not make it to second year. Of course you know this already and everyone believes they will be to one to survive but don’t bank on it until you see it in writing. That is way med students can’t get loans, the bank knows the stats.
Wait on the Airstream. When you are ready to pay cash it will be worth the wait.
Ps. I am not an MD. I am a retired trauma nurse that saw toooo many med students fall flat on their face within that first year. Even second year weren’t allowed near my team.
Get the cash then go play.

[Sgt.Estes]

My thinking as well. However, when we see the numbers we can then decide the best way. E.G. financing without her credit, co-buyers with great credit and very high income, or financing on my side. We just wanted to look at all sides of the coin, examining every avenue. However 8 years worth of interest, most likely make a few large payments and final payment at the -6-8 year mark would still IMO make it viable for her financial portfolio. Yes we could rent for the next -6-8 years and buy the AS cash, but happiness and quality of life are social currency and when factored in are quite “priceless.”

Again thank you for the response. It’s more good for thought and definitely noted.

[TG Twinkie]

Don't buy an A$. At least not now. Don't dream yourself in to debt.
There are quality trailers out there.
Look at:
Jayco
Arctic Fox
Lance.
Nash
Oliver

These are all 4 season units.
We were in Lubbock just last week. Temps close to 100 F.
Our 25' Nash with one A/C did just fine.
Our coach cost about 1/4 of what you would pay for an A$ of the same size.
As noted. A$ trailers are not 4 season units.
As a side note. We own a '74 Argosy 26'. We travel with it as well. Not much has changed at A$ in the last 44 years.
Any travel trailer is not an investment. The curb depreciation will be 20% or more the minute the tires hit the curb on the way out of the dealership.
20% of an $80K unit is $16K
20% of a $30K unit is $6K.
Factor in the interest and insurance on both of these units and you are in big bucks territory. Financing will require full coverage insurance.
Not to mention license fees and sales taxes.
Food for thought.


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[Sgt.Estes]

We listen. Even when it is something we don’t necessarily enjoy listening too. We have not put all our cards on the table, our finances, personal reasoning, goals, and achievements are just that, OURS. This is not meant as disrespect, but respectfully, I do not feel you know anything about us, and do not any basis for telling us what our “reality” is or is not. The OP asked one question regarding one aspect of financing that we considered. Please do not assume that we have not worked hard, sacrificed, or already paid to play. We understand the stakes, know the price and are well beyond the age limit of knowing what reality looks like.

However, if we entertain your idea that financing an airstream is foolish and unrealistic, I would ask if you would say that regarding the vast majority on this forum that are currently financing? Trust me, I’m not a fan of interest, but sometimes it is the price of admission.

Thank you again kindly for your reply, but please take in future consideration that it may come across as rude to tell someone you do not know that they are poor listeners who do not have an idea of what reality is. We take every opinion and piece of advice into consideration, always!!! We plan accordingly, and stay well within our financial means. Our lifestyles included staying grounded to reality and maneuvering according more to emperical and not anecdotal advice.

Best Regards

Best Regard

[Hittenstiehl]

Well then Sgt, sounds like you've got it all figured out. Go for it!!

Oh wait you were not mentioned in the initial post but now you are strongly chiming in.

Hopefully you don't think anybody was trying to rain on her parade believe me we're all Airstream enthusiasts and we strongly support your guy's adventure many of us have done similar things.

Sounds like you've thought it through, have done the math, have the finances and still see the upside to it. If that's the case enjoy and let us know how it works out. This way your home travels with you and your in a comfy spot.

I truly don't understand financing an Airstream with student loans but I understand it's a quite common thing to do these days. (Not necessarily financing the Airstream but financing life why you go to school versus just financing school).

Even if it doesn't quite work out you have a nice place for a couple years and then you sell it.



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[Sgt.Estes]

Originally Posted by Hittenstiehl

Well then Sgt, sounds like you've got it all figured out. Go for it!!

Oh wait you were not mentioned in the initial post but now you are strongly chiming in.

Hopefully you don't think anybody was trying to rain on her parade believe me we're all Airstream enthusiasts and we strongly support your guy's adventure many of us have done similar things.

Sounds like you've thought it through, have done the math, have the finances and still see the upside to it. If that's the case enjoy and let us know how it works out. This way your home travels with you and your in a comfy spot.

I truly don't understand financing an Airstream with student loans but I understand it's a quite common thing to do these days. (Not necessarily financing the Airstream but financing life why you go to school versus just financing school).

Even if it doesn't quite work out you have a nice place for a couple years and then you sell it.



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Thank you kindly. I wouldn’t say I have everything figured out. I actually enjoy civil debate and learning from others points of view. We don’t feel anyone has rained on our parade. We are more resilient and have thicker skin than that. Plus it wouldnt be the first time someone told us we couldn’t and shouldn’t do something and proved them wrong. We feel this forum can offer a lot of great information and want to use it to the fullest. We understand what comes with the territory regarding an open forum where everyone is entitled to an opinion. We will respect everyone and their opinions. Yes it may seem like purchasing a house, renting, or buying a different brand may be the wiser decision, but we fully understand our reasoning. We have cross checked that with our finances, and desires, concluding that the AS is a great fit for our needs and well within our means.

Best Regards

[kendrick.l.j]

With all due respect Sgt, I have no idea what percentage of Airstream owners financed their purchase but I do know that no one I have met personally has financed their Airstream. Quite possibly a different generation believed differently than to take on additional debts. Possibly finding a used Airstream in reasonably good shape and with you there to fix the things that break then maybe. From time to time used ones do pop up but the seller is likely take the cash buyer over someone who is needing approval from the bank.
You asked...well actually she asked...if financing an Airstream at this point in her life was a good idea. IMO- no, it is not. imo

[Sgt.Estes]

Originally Posted by kendrick.l.j

With all due respect Sgt, I have no idea what percentage of Airstream owners financed their purchase but I do know that no one I have met personally has financed their Airstream. Quite possibly a different generation believed differently than to take on additional debts. Possibly finding a used Airstream in reasonably good shape and with you there to fix the things that break then maybe. From time to time used ones do pop up but the seller is likely take the cash buyer over someone who is needing approval from the bank.
You asked...well actually she asked...if financing an Airstream at this point in her life was a good idea. IMO- no, it is not. imo

Noted. Thank you for your input. Honestly, thank you. I think she framed her question in a way that yielded answers that she didn’t intend to ask.

On a side note, would you consider $1,500 + a month for rent alone a better investment? If so please elaborate. Add that up to be $18k a year Times 8 years yielding $144,000 in rent thrown away vs. a Globetrotter at $100,000 before 5.2% interest. (Yes we’ve already been approved) that we will pay for 6 years and then pay off the lump sum balance within the 8 year mark. We currently have close to $7,000 in monthly expenses, yet we do still save and have expendable cash. That number we feel is bloated. We can easily reduce that, and should reduce that. So even though I believe she meant to to ask a simple question regarding financing, not with her student loans, but as having student loans as her only proof of income, I believe this thread took a different direction. No harm, no foul, and we take zero offense. In the end I know nothing about you or your financial situation and therefore will not have any grounds to tell you how to live your life, or which decisions I believe you should or should not make. I just hope you’re happy, healthy and living your life as you see fit. I believe we all should have such liberty, which is why I served and fought on 3 continents, shedding blood on 2. This forum and I assume Wally Byam’s creation of the AS would buttress the ideologies of breaking from the normal and living life unconventional and without limits. Please do not misconstrue my words, or intent. I did not mean any disrespect and hopefully you see it that way as well. I welcome your opinion and others, and look forward to many, many more discussions to come.

[Wayne&Sam]

A bit off topic, but thank you for your service Sgt. Estes.

[dznf0g]

Originally Posted by kendrick.l.j

With all due respect Sgt, I have no idea what percentage of Airstream owners financed their purchase but I do know that no one I have met personally has financed their Airstream. Quite possibly a different generation believed differently than to take on additional debts. Possibly finding a used Airstream in reasonably good shape and with you there to fix the things that break then maybe. From time to time used ones do pop up but the seller is likely take the cash buyer over someone who is needing approval from the bank.
You asked...well actually she asked...if financing an Airstream at this point in her life was a good idea. IMO- no, it is not. imo

I financed mine.....for about 5 years of a 10 year note. Old enough to fall in your espoused economic group, but the right unit found us early. Paid it off early but the situation called for action. Just saying, your rules, albeit wise, does not fit all. Just sayin' chill. That said, I'd buy a 'disposable' lower cost unit for the school years.

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[InterBlog]

Sgt. and OP - I scanned the thread; did anyone say WHERE the medical school might be? It figures into the cost analysis.

Also, you are in Texas, and there were numerous Airstreams flooded by Harvey, many of them close to brand new and with minimal damage (but compromised titles). I'm not sure if it's too late to pick up one on the cheap, but if you are handy and willing to put in the sweat equity to restore it, maybe there's that option at a far lower cost.

And also thanks as well from my husband and I for your service.

[surgpsych]

Wow! Where to begin? Short answer... Don't do it. Wait until you have your own business, or you are hospital employed before spending $100,000 plus, on an RV that depreciates over time. Owning a home IS an investment if you look at markets past. Having been through medical school myself, your loans are allocated on a bi yearly, to yearly basis in Texas. They cover the cost of SCHOOL. 4 years of Medical School in Texas, costs an avg of $100,000 per student. (Courses, labs, books, equipment, facility costs) This does not include residency and sub spec costs, after you earn your MD/DO degree. Re evaluate your need for an AS AFTER you begin your residency, as you will have a better understanding of your long term financial commitments. Nothing is set in stone. Many of us "survived" in small rental homes (800 sq feet) with very good landlords. The landlords love medical students because the landlords know, that we are "quiet" i.e. studying every waking hour, and we afford our discounted rent prices from the loans we take out. I feel it is ignorant to assume you are going to have a horrible rental experience, if you have not even begun your journey. I mean journey: getting accepted into medical school. I also feel that you are trying to justify the AS. Don't do it...yet. Of course, everyone's situation is different. I didn't have parents to help me pay for any of it. Don't be assuming. Good luck with your decision, with applying to medical school and your future endeavors.
Respectfully

[Caffeinated]

As any medical student knows, in biology, there is this thing called the bell curve. Most of us exist in more or less the center of the bell curve, whether we are talking about income, technical ability, problem solving, health, what have you. And it seems to me that the good advice given in this thread works for most of those that exist in that center of bell curve. But some people exist on the edges of the curve. And for them, maybe this thing could work. I don't know, I'm a center kind of guy myself. We got our AS one year before we retired, and paid cash. But if a different way works for you, go for it.

Mike

[Daquenzer]

I financed my AS. But I can pay it off at any time. I just choose not to because my rate is so cheap, and my return on investment is too high. Having said that I put a ton of money down, and pay extra each month. Also I would pay off my house before my AS. An AS can be sold in an emergency. A house you live in can’t. I have no car payments and my house payment is $450 a month!

I am in real estate. I’m an appraiser. I also have an economics degree. I do not view my AS as an investment. Pure luxury and entertainment. The reason I bought an AS was because it was just a better product and my wife liked it. She disliked the other TT. Also I could not see myself camping in anything else. Others have small windows. While the AS was so much more inviting for enjoying the outdoors.

Having said that renting is no investment either. Owning a second home isn’t an investment. Indeed home ownership is not an investment (contrary to many). I figure owning a home has cost me a bundle. The only real estate investment is being a landlord where a cash flow is obtained. Owning a home is however what I call minimizing a loss. And that is an economic consideration which it looks like is part of your reasoning. So let’s suppose you look at an AS as minimizing a loss. Then I think you are probably on at least some solid footing along with reducing living overhead.

Also some other considerations: I probably spent about $7500 for accessories to camp. Granted some of it was because buying an AS is like outfitting a house. But you will be amazed at how much stuff you need to camp. You will definitely want some sort of generator(s), surge protector, hoses, tools, etc. So budget some money in for that stuff. At minimum a few thousand to start.

My biggest issue for living in it full time is more size and functionality. I know there are people that do it, but before I would buy an AS I would try living in one for a few months. I would think twice about it. I know my wife couldn’t. Things like washing the clothes, storing the clothes, etc would be a problem. How about having guests over, etc. These are the things that can raise issues. I know people do it. But can you do it?

To me the advantage of an AS is a nice place to sleep so one can enjoy the outdoors as well. In fact I’ll bet most Airstreamers are outside much of the day. They don’t sit in the AS studying, cooking, etc. So from a practical standpoint I would think that through a bit.

Finally buy a used one if you can that’s about 5 years old:
1). You will have let someone else take the depreciation hit.
2). The previous owner will have worked out much of the kinks.

I didn’t take my own advice on that because I don’t live in an area where there are many Airstreams. And to find the one I wanted was going to take me a huge amount of time. We found the one we loved and just did it. But we have a sizable bank balance (to our fault). But if I was in my 20’s I would have shopped carefully and looked for a deal. No point in paying more than you should. Heck I practically built my first house.

Good luck.

[InterBlog]

Originally Posted by Caffeinated

As any medical student knows, in biology, there is this thing called the bell curve. Most of us exist in more or less the center of the bell curve, whether we are talking about income, technical ability, problem solving, health, what have you. And it seems to me that the good advice given in this thread works for most of those that exist in that center of bell curve. But some people exist on the edges of the curve. And for them, maybe this thing could work. I don't know, I'm a center kind of guy myself. We got our AS one year before we retired, and paid cash. But if a different way works for you, go for it.

Mike

+1. A doctor plus a gunnery sergeant? *NOT* the middle of the curve. Not even close.

[kendrick.l.j]

She Not an MD yet. Still undergrad...long road ahead at this point. $400,000 student loan is a lot to consider. Too many variables yet to work out. We get college students popping in about once a month trying to figure out how to get a brand new Classic. Granted they have great taste and great things to strive for but life has a way of changing very quickly. Having an extra $100,000 in savings can make an enormous difference in the choices one can make. I do get it, that whole quality of life and living in the moment but there’s a lot be said for having a really good punch out policy ie, savings vs debts, just a thought.

[Lily&Me]

You don’t want to hear all of us tell you that financing an Airstream purchase at this point in your life is not a good idea, and that’s okay, but you put your info out there and here you will get opinions.

Anyone lending you money will want proof of income. Why would they not, and just take it on good faith that you have adequate income to make payments on money they have forwarded to you...a lot of money, I might add.

If you are not employed, with a decent and documentable income, it seems unlikely to me that you will be able to borrow what you need.

The responses here have focused on concern for your decision, but if you can’t borrow the money it is a moot point.

The other thing you need to consider is if tragedy strikes and one of you is unable to generate money of any kind for some reason, leaving you unable to make payments. It happens.

Then, your credit is ruined and you have something you may not be able to sell for as much as you owe.

I doubt any one here can solve your lending dilemma, but we all wish you luck.

Maggie

[Sgt.Estes]

Wow. Thank You everyone for the replies.

So ok, let me see If I can make this clearer. We are listening to everyone's opinion. We are not trying to justify anything. If we feel the AS is not the right move, we will not make it.

We can easily afford the AS.

NO, It is not going to be financed with her student loans, that was a hypothetical scenario we were looking at, just to look at.

We will put anywhere between 20-30% down on either a Classic or Globetrotter. The payments will be a fraction of our current rent payment. In some locations rent has cost us anywhere from $1325-2000 per month.

Her income is not the only income, and NO her parents will not be paying a dime for the AS. My income will be the primary income and can easily sustain our cost of living.

I have owned and lived in a camper for many years prior, and she has lived in New York,so the space is not a factor.

To be honest she was not trying to ask whether or not we should purchase an AS or if it is a good Idea or the correct time in life. She wanted to know how difficult the process would be if she tried to hypothetically finance it showing her student loans as her primary income.

Bottom line, over the next foreseeable years, we will need a place to call home. Rent that will fluctuate from $1300-2000 and even more depending on demographic will be spent regardless. Why throw away money, if that money can easily be allocated towards a purchase that will build some equity and eventual ownership. Even if that depreciation was 75% over the next 8 years we would still have something to show for the money spent.

Regarding interest, even if we were to take the full term of the loan to pay it off, that interest is less than what we would spend on rent. Way less.

We have enough savings after we purchase the AS to cover all supplies needed, and a large emergency fund that could float us in the event of some disaster.

I really do not see the big deal here. We have not conclusively decided to purchase an AS yet, just weighing our options, and this one is far cheaper on paper than any other option. Yes, that includes all expenses needed to full-time during her Medical School. So if it is cheaper for us to make this decision, we understand fully what it means to own and live in an AS, I do not see the reasoning for being told it is a bad decision or the wrong time. I do take everything said into account, but maybe something has been lost in translation.
We can afford it, with or without her loans, her loans will not be the primary source of payment, and we will only be paying interest for 6 years, 8 tops, then I will pay it off cash then. In the mean time we just do not see the reasoning in throwing away a greater amount money on rent.

Again thank you all for chiming in, we do appreciate it.

Best Regards

[vintageracer]

Buying an Airstream with your STUDENT LOAN funds (Your Words) tells us all you are already BROKE so don't be stupid!

If this is your idea of "Prudent Financial Planning" you will be paying on that STUDENT LOAN for the next 30 years all the time "Justifying" your "Prudent Decision" way back when I was in Medical School on idea that the interest rate is cheap, I AM A DOCTOR and I can easily afford the payment.

As stated earlier by another poster as a group Doctor's are NOT known to be good business people. It's not always about the MATH saying what's the best way to go as you continue to try to "sell" us all on that idea. Quite listening to your BROKE economics professor's who tell you "Debt is Good" and start PAYING for things as you go instead of trying to justify financing "Depreciating Assets"!

[Lily&Me]

Okay, then...in my opinion, based on my personal knowledge and life experience, she will not be able to get a loan based only on student loan money and what she gets from her parents.

The OP reports being an “undergraduate”, 1 1/2 years away from attending medical school, which sounds like she is 20 or so years old.

I would take a guess that her obtaining a loan for an Airstream, with no employment income, is not going to happen.

We here, however, are not the last word...that would be her lender.


Maggie