Which is cheaper - new or 3-year old over 8 years?

Besides Ebay I like Cranky Ape because you can see what they sell for. The first one should be interesting to see what it goes for.
I would suggest going older than three years so for your price you have something that was upper middle with more options and better built.
At 10 years my 04 is worth a little less than 50% of what I paid for it at six months old... which is a lot more than zero. I do not see any reason why it will not go another 10 years without major problems and even then at 50% of current price it's still a lot more than zero.
While we are only half timers, I would not want to do it in a 35'. BUY MORE MH THAN YOU THINK YOU NEED... ONE TIME.

Acei wrote:
I'm not sure if these models are considered "super low end junk":

- Newmar Ventana
- Tiffin Allegro Red
- Winnebago Forza
- Itasca Solei

???? Dont know about the word JUNK...but all of those are definitely low end

Everything is an investment. You're investing your money and hoping to have it grow, or you're hoping to get a return on investment in enjoyment. If you're really foxy you might even get both. With that said, there are good and bad investments (and it isn't solely based on money coming out after the initial outlay of cash.)

Funny how bad investments get swept under the rug or minimized by those that make them. If in ten years the rig has zero value but the memories are priceless then that was a good investment. If on the other hand in ten years it has no value and it sat in your driveway 95% of the time....

I'm not sure if these models are considered "super low end junk":

- Newmar Ventana
- Tiffin Allegro Red
- Winnebago Forza
- Itasca Solei

All around 34-45ft range and the first two are a bit more expensive than the last two. I don't think we need anything bigger than this. And it will tow a very light toad such as either Honda Fit or Ford Fiesta.

Not looking for a 40+ft tag axle based MHs. And although I said 8 years, we'd like to full-time as long as we can, so it could potentially be longer than 8 years. Given all this, I'm still trying to find some wisdom over buying a 3-year old used model over a new one.

Depreciation is always a percentage of what you start out with. So if the number you start out with is smaller, then real dollars consumed is always going to be less, assuming identical rigs in identical condition.

Now having said that, you may be better off buying a more expensive used rig, compared to a cheaper new rig. In other words, buying a super low end $150K DP is going to be a piece of junk, compared to what a $150K will buy you in something that is 8 years old. Try to compare your brand new 150K rig with one of these: http://motorhomesoftexas.com/coachrv/foretravel/2007--nimbus--36--C1692

Since RV's typically are not investments, they are liabilities I think the best way to look at depreciation is to assume that the coach is worth nothing in ten years. Anything you would eventually get in resale is gravy. So, if the coach is worth nothing in ten years sharpen the pencil and do the math. That should give you a realistic comparison of depreciation per year of ownership. And don't use MSRP but as others have said from the best actual discouinted price. A three year old coach ideally would have all the little new warranty aggravating stuff fixed and if a diesel should be long before any major repairs are needed. You might need tires depending on the usage from the previous owner.

I would factor in a warranty value that could offset some of the depreciation differences between pre-owned and new should you need to fix something expensive. What is the peace of mind worth to you for new tires, new brakes, new coach interior systems and a warranty? What will financing be for the interest rate between new and pre-owned? You said you would pay cash, but why not finance if the rates are low and use your savings for savings or for other income producing investments. Why tie up so much money in a huge liability? Factor all that in to your equation and the $200,000 coach that you paid $150,000 for might be a better deal over ten years than the three year old coach that you can get for $90-100,000 that needs $2500-3000 for tires, brakes, a few things fixed inside, and does not have a warranty.

In eight years the three year old coach will be eleven years old, the new coach eight years old; that might bring a few thousand dollars more in resale to you. You can't win the depreciation game, it is just how much you want to lose.

You also need to determine length of ownership. If 20 years I'm guessing new, if 2 years then the 8 year old one.

Again what is the length of ownership?

On my class A I determine how long I wanted to keep it (five years) and the amount of money I was willing to lose on that investment. I took what I was willing to lose and doubled that amount. That was my buy in point. Last summer I sold it after six years with a 35% lost on investment. I feel pretty good now that it's all done and over with.

Looks like I'll have to look into eBay for the actual used pricing data rather than RV trading websites. I've not looked into NADA pricing, so I'm not sure what are the numbers from there...

Motorhomes depreciate like wild fire! You can get into a extremely nice, 14 or 15 year old, Foretravel for around $100.000. That would rival any used, newer, entry level DP that you see on a dealers lot. In fact, I thing it would rival many brand new, entry level ones when it comes to fit and finish! If I were to upgrade my 20 year old Foretravel, I would be looking at moving up to a '95 thru '98 model year. I really prefer to stay away from the computerized diesels.

Acei wrote:

rgatijnet1 wrote:
Using the NADA guides for new and used RV's you will find that for any particular model, the difference between a new 2014 coach and a similar model 2011 unit is going to give the approximate deprciation, which for a $250,000 coach is about $125,000. IN other words, a three year old coach is worth about 1/2 for what the MSRP was when new.
Now, looking around the country, you can still find "brand new", untitled coaches from 2011 that are selling for 40-50% off of MSRP, with a new coach warranty. Naturally they have been sitting but you will still get a warranty whereas a used 2011 will be out of warranty.

Yes, but if you apply the typical 20-30% discount on a new unit, the actual depreciation is much less. I've been browsing for specific used models in rvt.com and rvtrader.com and learned that the difference between a new unit (with discounts) is no where near twice the cost of a 3-year old unit.

A 2011 model that's still new? Yikes. I wonder how well the motor works on those units, especially if they have been siting at the same spot all the time.

Have you looked at the selling prices on used units, or read what forum posters have said about trying to sell theirs? There is no such thing as selling it for NADA LOW pricing. To actually sell the unit, you are going to have to discount well below even the NADA low retail which still puts the actual three year depreciation at $100,000+. Look on eBay for the sales prices of units that actually SOLD and then find out what that same unit sold for with a 30% discount from MSRP.
I wouldn't want a new 2011 that has been sitting for three years but if the price was right, and it came with a full warranty, why not. Remember, if you read any of the posts here on this forum, diesel engines last forever. :B