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Dinosaur Coaches-What the future holds?

Yahoo Message Number: 76027
I was just talking with a friend in the business. Perhaps most of you are aware of this, but I was not: According to him, financial institutions will not loan money on coaches older than 10 years, period. They refer to these as "dinosaur" coaches in the business. That means that in a few weeks, any one of us with a coach 2003 or older will only be able to sell to a cash buyer since most of these loans are not assumable. While there may be those who easily afford one of these coaches via a loan, there are not that many people walking around with this kind of cash.

Given that the coach market is deep in the toilet, it is likely that anyone who purchased a few years ago with a loan is upside down to a lesser or greater degree. It would seem to me that with the economy not likely to recover for quite a while, and quite possibly never fully recover to where it was, we are looking at continuing huge numbers of repossessions, prices dropping further, etc.
Bottom line, it would seem that we are sitting in not just what we knew to be depreciating assets, but precipitously depreciating assets. If you own it, you might as well plan on being buried in it. If the bank owns it, and you have years to go, you will be paying the bank vastly more than its market value. Many are not going to do that in the long run. What will happen? I suppose if the economy picks up, demand could increase and prices as well? I am not very good at these business matters. I would be curious what some of you who are see in your crystal balls.

Rich 2002 Magna

Re: Dinosaur Coaches-What the future holds?

Reply #1 –
Yahoo Message Number: 76028
I think Credit Unions will, they did on ours. Banks may not, but Credit Unions are much better to work with.

Leonard

97' Magna 5418

Re: Dinosaur Coaches-What the future holds?

Reply #2 –
Yahoo Message Number: 76029
It seems this has really been going on for a long time, so much of what you say , is not new. How , one could get a mortgage on a coach, with a 30 year fixed loan, as a second home, on an asset, that depreciates at 20 to 30 % ( or more ) per year, is beyond any kind of financial reality. While the interest is deductible, there still , is no real rationale , financially . In the first 5 years of a 30 year loan , I suspect you would only pay about 5% of the principal of the loan, while the coach has depreciated a minimum of 60%. While prices of coaches was increasing rapidly from 2003 or 4 to 2009, it was still hard to see how the loans made sense. We are , however , dealing with a time when money was easy, and debt, was considered okay. Now when times are tough , it is easy to see the folly in all this. Isn't it the same for the Governments around the world. Like everything else, what goes up , must come down.

Ron Baran Magna7025

Re: Dinosaur Coaches-What the future holds?

Reply #3 –
Yahoo Message Number: 76030
Interesting the "Dinosuar" Coach topic has come up as we have heard this expression before. Financing can be done if you are willing to put down a hefty down payment, have a little higher interest rate, and shorter term. There are a lot of Coaches out there that are over ten years old and are trading hands. Really don't think they are all paying cash so there has to be some type of financing. CC's are on the high end scale so wouldn't be too concerned as there will be a market out there for those wanting a large quality made Coach. Personally like the Coach we have and when we bought it five years ago knew we were buying it long term with the intent to drive the wheels off it and see the Country.
Just hope I don't end up like my neighbor who parked their pretty Coach in the yard 15 years ago and it hasn't moved! Hummm, maybe he tried to sell it and it couldn't be financed.
We all have quality Coaches. Took ours on a 16,764 mile trip to Alaska this summer and came back only needing minor repairs like replace the windshield and get new front tires and alignment. My take is if you have a good one try to keep it in pristine condition.

Pete Sarno '02 Magna #6110

Quote from: Rich

> I was just talking with a friend in the business. Perhaps most of you
are aware of this, but I was not: According to him, financial institutions will not loan money on coaches older than 10 years, period.
They refer to these as "dinosaur" coaches in the business. That means that in a few weeks, any one of us with a coach 2003 or older will only be able to sell to a cash buyer since most of these loans are not assumable. While there may be those who easily afford one of these coaches via a loan, there are not that many people walking around with this kind of cash.

Quote
> Given that the coach market is deep in the toilet, it is likely that
anyone who purchased a few years ago with a loan is upside down to a lesser or greater degree. It would seem to me that with the economy not likely to recover for quite a while, and quite possibly never fully recover to where it was, we are looking at continuing huge numbers of repossessions, prices dropping further, etc.

Quote
>

Bottom line, it would seem that we are sitting in not just what we
knew to be depreciating assets, but precipitously depreciating assets.
If you own it, you might as well plan on being buried in it. If the bank owns it, and you have years to go, you will be paying the bank vastly more than its market value. Many are not going to do that in the long run. What will happen? I suppose if the economy picks up, demand could increase and prices as well? I am not very good at these business matters. I would be curious what some of you who are see in your crystal balls.

Re: Dinosaur Coaches-What the future holds?

Reply #4 –
Yahoo Message Number: 76031
recently financed 1999 cc thru credit union with no problen with decent down payment    ; 40ft intrigue 10739 rich k
 

Re: Dinosaur Coaches-What the future holds?

Reply #5 –
Yahoo Message Number: 76033
It sounds as if my friend has at least partially misinformed me on the financing issue. Coaches trading hands I believe, but at what actual selling price is the question. I got curious and I see 02 and 03 42ft Magnas and Affinitys listed for asking prices well above NADA average retail. This seems pretty strange to me in todays market. It is interesting that for some reason there are very of these for sale though.

Rich 2002 Magna