New Motorhome through Leaseback Program what you think?

This is more of a sales tool than an investment.

If you consider depreciation and financing (or time value of money) you will find that your costs the first few years might be considerably higher than your share of the rental earnings. If it were a solid money-making investment the rental service would be buying the RVs themselves and not sharing rental income.

The rental company or dealer is doing it most likely for tax benefits, i.e. cost of having the rental fleet becomes an expense rather than an asset that has to be depreciated over an unrealistic lifetime.

So you're buying an RV, placing in in a rental fleet where anybody from anywhere can rent it when you're not using it.

Can't begin to come up with a scenario where that would work for me.

One of my in-laws rented his class C in a plan like that. His rig was abused and shows far more wear than a RV of that year would otherwise.
So I guess it depends on how meticulous you are. If you don't sweat the little things then maybe it's OK.
I keep my things in pristine condition. There's no way I would let anyone use my RV.
Also you need to check into insurance - both liability for when someone else causes damage with your RV and for the RV itself.

tatest wrote:
The rental company or dealer is doing it most likely for tax benefits, i.e. cost of having the rental fleet becomes an expense rather than an asset that has to be depreciated over an unrealistic lifetime.

A great many yacht charter companies use the owner/ leaseback arrangement - mainly to avoid tying up their capital. They use the capital of the various owners.

Most of the small airplanes used at many flying schools are under a similar program.

wildtoad wrote:
So you're buying an RV, placing in in a rental fleet where anybody from anywhere can rent it when you're not using it.

I know a half dozen folks who have their RVs in such an arrangement in Dallas. They are all high end diesel pushers, and frankly the owners almost never use them.

The most critical factor is how the rental operator screens their rental customers.

I likely wouldn't do it with a 60-90,000 class C unless I was real sure about the rental company. It would probably be alright with a 300-400,000 class A.

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See how well the company screens their renters.

Drop in unannounced and ask to look at some of the other units they rent on similar arrangements. Are minor problems fixed promptly?

Does the lease agreement make you or the rental company responsible for repairing damage?

Who pays for the extra insurance as a renter vehicle?

What is the level of the replacement insurance if the unit is destroyed while rented?

Find Bagman over at "Around The Campfire" and PM about his experience with this type of deal. Not good at all.

President Reagan once said: "Nobody washes a rental car." You are taking your RV, and basically renting it out...will the renters take care of it?
I'd pass. JMHO

Run as fast as you can

pollinh wrote:
.Would be great to get some feedback.

As the line from the movie goes, "Run Forrest, run!"

I know several folks who have tried this program. There's invariably enough 'issues' and non-warranty repairs, etc, etc, etc, to mean the owner gets little if any money and a year old coach with 10 years of wear and tear on it.

If there was that much money to be made you'd think they'd have their OWN units in the program not yours.

oh very interesting thanks for the answers - we may have to tell you more what they offer us.
The rental company only rents to European Customer ( never local) and the Insurance will cover any damage by MBA Insurance. Also they told us and we ask other owner the bought with the same company - the any renter have to place a deposit for damage.
We only using the motor home in the winter for 2 Month and in spring for 3 month why not saving $10.000 instead paying 59K - the rental company get this directly from manufacture. We nit sure if we go with Fleetwood or Thor

wildtoad wrote:
So you're buying an RV, placing in in a rental fleet where anybody from anywhere can rent it when you're not using it.

Can't begin to come up with a scenario where that would work for me.

x2. It wouldn't work for me.
I'm guessing it's easier to rent a RV than it is to rent a Yacht or Airplane.