Effy wrote:pablo77 wrote:Daveinet wrote:
Its not uncommon for people to buy an RV and then realize they don't like RVing, or their life style took a sudden change.
Lets assume a brand new coach has a useful life of 20 years. If I buy a brand new coach for 100K, and 1 year later it is worth 60K, my cost of ownership is 40K for the first year. If I start out with a 1 year old coach for 60K, I just saved 40K on my initial purchase, because in real value, a 1 year old coach is not worth that much less in usefulness. So in that perspective, I can buy a coach that will last 20 years for 100K or I can buy a coach that will last for 19 years for 60K. Now invest that left over 40K for 19 years and tell me what the return in that investment is. Trust me, 40K invested over 19 years will buy you another used coach that will last more than that final 20th year.
Your assumption supports your argument but I think it's a false one.
From my research, typically, a 100k brand new coach will be worth between 85k and 90k after one year.If you paid 100k for a brand new coach that is only worth 60k after one year, you got taken big time. I'm talking actual price, not MSRP which skews the numbers big time. If you go with MSRP of 100k then your numbers might work. JMHO
x2, show me a 1 yr old $100k coach I can buy for $60k and I would buy them all day long. (MSRP removed from the equation) And the cost of ownership is not $40k for a year. Man thank goodness this wonderland math does not exist in the real world. Your cost of ownership is what you paid amortized over the length of time you own the coach plus maint and repairs. While depreciation is included in TCO, the depreciation hit is not realized unless you sell. THEN you take the hit. Unless someone is reaching into your pocket for this inflated $40k it did NOT actually cost you that. Were that the case the banks would demand the depreciation offset in year one to further securitize the loan. And that is not how the banking world operates. Been doing it for 25 years. And lets be frank, TCO and depreciation are majorally releveant to corporations which is why they get offset for it. An asset so ill performing as an RV is almost a liability. The entire investment - if you want to call it that is a loss. TCO is price, depreciation, main, repairs etc, amortized over the life of the asset or the length of time you own the asset.
