Forum Discussion
tatest
Feb 06, 2015Explorer II
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.
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.
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