Depreciation Guidelines?

One way to tell is to look at the COMPLETED auctions on eBay to see what a unit actually sold for. This is the real value, not the asking price.
If you find a newer coach that had sold on eBay it is not that difficult to work backwards and find the MSRP of that unit which should allow you to compute the sales price vrs the MSRP.

The initial "drive it off the lot" huge hit you take is usually a one-time thing. From then on, it's not necessarily x% per year, generally. If you're looking at a 10-year old coach, you better off going by what they've sold for in reality than going by a mathematical formula.

You didn't mention what brand you're looking at, but whatever it is, there is likely an owner's group that can give you more/better specifics. Depreciation can be quite different between models even within a brand.

My rule of thumb is that you would pay about 20 to 30% of the original MSRP for a 10 yo coach that is in excellent condition.

That is buying it at a reputable dealer that has completely gone thought the coach and assures that everything is functioning correctly at time of delivery. Private sales would be less but the buyer is left to correct all the deficiencies so the end costs are about the same.

For a used price check NADA and past PPL sales

Depends on YOU as a negotiator, the MOTIVATION of the seller and many other factors, such as time of year, condition of the coach etc. etc. To try and use a mathematical formula is time consuming and foolish. You think mfg/dealers/sellers don't all these threads anyway. That's why these prices are out of whack. MFG/ well if they're gonna knock off 30% lets raise the MSRP by 35%..:S.

The MSRP on MY coach was $600,000. No way was that a realistic price. I.E. In Motion DSS system = $3400; Euro recliner = $1500; Power Cord Reel = $938; Sanicon system =$616...you get the idea. Inflate the price then negotiate it down and make the buyer feel like they're getting a good deal.

Out west we do the same with real estate. Dumb!..Funny how we don't consider MSRP when buying a gallon of milk or a good pot roast...:S....Dennis

Executive wrote:
Funny how we don't consider MSRP when buying a gallon of milk or a good pot roast...:S....Dennis

Ah, but the manufacturer is the COW and I'm afraid her Suggested Retail Price would be much higher than we could afford, especially the roast. :B

I don't know but I think it's pretty difficult to estimate the amount of depreciation very accurately. To go from $200,000 to $98,000 seems pretty extreme to me but not impossible. An RV is only worth what a buyer will pay at any point in time so it could vary a huge amount. For example, if you try to sell a year after purchase, how long are you willing to hold out for a higher price. Or you might get lucky and find that 1 buyer in the area right away that really wants the unit. You might not find a buyer at any price. It's not like a reasonably priced house or car in that there just aren't that many buyers for such a specialized item. The only thing I know for sure is that RV's depreciate a lot and that's the single most expensive part of RVing. If you have to worry about it too much maybe you can't afford it.

Like many of you said, it 'depends'.

We sold our 2008 Monaco Dynasty last summer (2014). We drove it 7.5 yrs. and put almost 70,000 miles on it. We bought it new.

We sold it and received 49.3% of what we actually paid for it in April of 2007 (not counting taxes). After paying the consignment fee, our percentage was 45.3%.

I thought the return was not too bad for 7.5 yrs. of enjoyment.

MM.

Mr.Mark wrote:
Like many of you said, it 'depends'.

We sold our 2008 Monaco Dynasty last summer (2014). We drove it 7.5 yrs. and put almost 70,000 miles on it. We bought it new.

We sold it and received 49.3% of what we actually paid for it in April of 2007 (not counting taxes). After paying the consignment fee, our percentage was 45.3%.

I thought the return was not too bad for 7.5 yrs. of enjoyment.

MM.

You don't count inflation in this explanation.
I bought several toys in last decade and after using them for several years I sold them for more than purchase price.
The deal was for example that I bought 4 years old boat for $11k when new one cost $25k
6 or 7 years later I sold the boat for $12k, but at the time new models were $50k.
We live in strange times. Due the fact that not too many people do have disposable cash, lot of new things can be bought for 40 cents on a dollar.

Kayteg1 wrote:

Mr.Mark wrote:
Like many of you said, it 'depends'.

We sold our 2008 Monaco Dynasty last summer (2014). We drove it 7.5 yrs. and put almost 70,000 miles on it. We bought it new.

We sold it and received 49.3% of what we actually paid for it in April of 2007 (not counting taxes). After paying the consignment fee, our percentage was 45.3%.

I thought the return was not too bad for 7.5 yrs. of enjoyment.

MM.

You don't count inflation in this explanation.
I bought several toys in last decade and after using them for several years I sold them for more than purchase price.
The deal was for example that I bought 4 years old boat for $11k when new one cost $25k
6 or 7 years later I sold the boat for $12k, but at the time new models were $50k.
We live in strange times. Due the fact that not too many people do have disposable cash, lot of new things can be bought for 40 cents on a dollar.

There was no inflation in those years. Ask people who tried to sell their homes, if they could.

You do realize that the Federal Reserve kept the interest rates at zero or near for a very long time, just now thinking about raising them. Home interest rates at less than 4-5%.

MM.