Class C Depreciation

My wife and I are considering a Class C and have been told that most people trade theirs in every 4-5 years due to depreciation and getting rid of it so they are not as upside down as they would be after year 5. We like the idea of a Class C but we do not want to have to bring several thousand dollars to the table if it is true that you are better trading up around year 5. I'm assuming this theory is based on buying a new unit.

That doesn't make any sense, IMHO. As Toes indicated, you're far more likely to end up upside down buying new every 4-5 years, taking a depreciation hit on each new deal. If you make a substantial down payment, and finance for a relatively short term, you will have some equity in your RV, possibly for the life of your loan even, depending on the down payment. No matter what you do, RVs are depreciating assets.

You want to try to buy something worth holding on to. Sure, if your situation changes, your choice of RV may change, too. But starting off thinking you should buy a new (or even used) unit every 5 years is a rather expensive way to RV, and I don't think "most people" do it that way, and even some who do didn't initially intend to do it that way.