I've got a couple of questions about depreciation for a Class A Diesel RV. I frequently read that a new RV looses 30% of it's value the moment you drive it off the lot. I've also heard that you should expect to pay about 30% below MSRP on a new RV.Now, I'm actually shopping used, which leads to some questions:1) If a new RV is purchased at 30% off MSRP, and then loses 30% of value, does that mean that the resale value after a year is approximately 60% less than MSRP? (For example, MSRP $200,000 - 30% -> sale price of $140,000. Drive off the lot less 30% -> $98,000 resale value?)2) Is there a simple rule-of-thumb based on MSRP of how much the resale value of a well maintained, quality diesel Class A should be depreciated over the first ten years? Meaning, just to get into the ballpark for negotiations?

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

Depreciation Guidelines? | Good Sam Community

NeverHome2
Explorer
Sep 10, 2015
Depreciation is a fact of life just like death and taxes. Trying to quantify it is impossible. The IRS gives guidelines on depreciable capital equipment and real estate but that has absolutely no reference to market value which is what your really interested in. Fair market value is defined "What a ready, willing buyer will pay a ready, willing seller.".

The pricing people check sales prices for everything on the road and display the results on their sites. These didn't used to open to the public so hoorah for the internet. If you want to know what a coach is worth go to NADA or Edmonds.
Arizona_Kid
Explorer
Sep 11, 2015
We had a chance to stay at Mr. Westernrvparkowner's park the "Rocky Mountain RV Park" but decided to move on as we didn't like what we saw. Too exspensive, some grumpy people working. It is close to the Parks entrance, and obviously that's what your're paying a high price for.
It could be a much nicer park, and maybe Westernrvparkowner should spend less time badgering members on the forum, and more time fixing up the park. jmo, yours may vary.
MilesandSmiles
Explorer
Sep 11, 2015
RayChez wrote:

Actually the best thing to do is to buy a coach that is around two years old. Lets say it sold new for 800K, in a couple of years you could probably get it for 480K. Lot of coaches on the used market now days.

That's what I'm thinking. In fact, it's why I'm looking real hard at 2014-2016 coaches now, since I intend to buy between 1-2 years from now.

Thanks also to those who mentioned NADA Wholesale. Am I correct that this information is only available at the library, and not online?
MilesandSmiles
Explorer
Sep 11, 2015
TriumphGuy wrote:
A key piece of information to answer the above question would be to get one's hands on the wholesale NADA values. I have yet to go by the library to research that part but the information is available.

Very helpful analysis, and I'd imagine that the same would be true of gas or diesel, more or less. We've got a bare-bones library, but I found that you can purchase the NADA book with wholesale values for $69, or $137 for a year subscription (three issues over the course of a year). Seems like a pretty small investment for some very helpful information when buying or selling on the private market. Possibly a good negotiation tool too if someone is asking way to much - show them their unit in the book.
TriumphGuy
Explorer
Sep 11, 2015
DunellenGuy wrote:
TriumphGuy wrote:
A key piece of information to answer the above question would be to get one's hands on the wholesale NADA values. I have yet to go by the library to research that part but the information is available.

Very helpful analysis, and I'd imagine that the same would be true of gas or diesel, more or less. We've got a bare-bones library, but I found that you can purchase the NADA book with wholesale values for $69, or $137 for a year subscription (three issues over the course of a year). Seems like a pretty small investment for some very helpful information when buying or selling on the private market. Possibly a good negotiation tool too if someone is asking way to much - show them their unit in the book.

You welcome, I hope it made some sense, it is at least from my experience ... and thanks for the reminder that the NADA book can be purchased. I went to our local branch looking for the NADA books and they said they have them at the main. But it they aren't there either, that's a great deal for being informed on a purchase.

I better do something quick as I made a call on a Winnie just today!

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