Consumer Alert!

1.  MAY BE PENALTIES FOR CASHING OUT INVESTMENTS (ex. mutal funds) - Many mutal funs sold ten or twenty years ago have significant monetary penalties if they are cashed out before their maturity.

2.  LOSS OF EMERGENCY FUNDS - You are depleting a large sum of money from your savings or investments when they pay cash for an RV.  This money could be needed for emergencies later ex:

> A major home repair
> A loan to a family member needing money
> A trip due to a family emergency
> A funeral

 3.  LOST OPPORTUNITY FOR INEXPENSIVE LIFE AND DISABILITY LOAN INSURANCE - In the event that you become disabled and unable to work, you may have little money to draw upon from savings for income if you have paid cash for your RV.  By financing the RV and insuring the loan with your credit life and disability insurance, you can leave your cash in savings or investments.  In the event that you were unable to work, you would have your savings or investments in tact and be paying for the RV with insurance benefits instead of your savings.

If you are over fifty years of age, you have the added benefit of being able to qualify for very inexpensive credit life and disability insurance premiums.  This is due to the fact that the insurance is an "averaged premium", which means that all customers that qualify pay the same premium.

4.  PAYING CASH FOR A RV DEPLETES MONEY FROM YOUR SAVINGS/  THIS LIMITS YOUR INVESTMENT OPPORTUNITIES.  AT SOME TIME IN THE FUTURE IF YOU STILL HAVE YOUR SAVING THEY COULD BE USED FOR:

> A down payment for a real esate purchase such as an investment property, cottage, or a large home.
> Home renovations or a pool
> Registered Retirement Savings Plans

5.  LOST OPPORTUNITY TO "PAY DOWN" MORTGAGE - Most mortgages allow you to pay off up to 15% of the principal amount borrowed each year without a penalty.  By paying down your mortgage instead of paying cash for your RV, this significantly reduces the interest charges and the amortization of your mortgage.  The savings more than offsets the cost of interest on a RV loan. 

6.  NO CREDIT RATING ESTABLISHED - When you pay cash, there is no establishment of a positive credit rating.  A positive credit rating is essential for borrowing money from financial institutions for things such as mortgages, lines of credit, home improvement loans, credit cards, etc.  Financing through your dealer plan establishes your credit rating.