Depreciation of new RVs

Optimistic Paranoid wrote:

beemerphile1 wrote:
I buy what I want and assume it will be worthless when I get rid of it.

I think the key point here is that you can't sell your house and put it all into an expensive new RV when you retire and expect to get your money back out of it when you can no longer continue on the road. You need an exit strategy that allows for that fact.

Correct and the point of my statement. Anyone would be a fool to think they will get the money back out of an RV.

Plan on getting nothing and whatever you do get will be a surprising bonus.

seaeagle2 wrote:
Issue with boats and RVs is with such long term financing, people get under water and you can buy a new one for less than what people sell 2 or 3 year old units for, because they owe more than what its worth.

^This.
And this question is as open ended as the compgroind prices thread.
If you're buying a new RV and even assuming you cut the best deal in the world, in general, depreciation is huge. Plan on paying off whatever it costs you and getting very little monetary ROI.
Yes some brands, types, conditions are better than that, but if the financial roi is a real consideration, buy used or stay home.

And asking US is not the best way to figure it out. Look at used RVs for sale by owner. Look at similar types and ages and compare to whatever you're thinking about buying. There will be your answer.

Issue with boats and RVs is with such long term financing, people get under water and you can buy a new one for less than what people sell 2 or 3 year old units for, because they owe more than what its worth.

beemerphile1 wrote:
I buy what I want and assume it will be worthless when I get rid of it.

Me too...

I was pleasantly surprised to sell a 2006 pop up I paid 4700 new in 2005 for for 3500 this spring.

BUT, as someone noted, location is everything on new and used. That 3500 I got up here in MT would have been about 2K in Kansas where I came from. Same for Subaru's up here worth a bunch back in KS, not so much.

I actually think you could make money buying campers back in KS and driving them up here to sell them, same for used Subys.

Look at RVTrader is you want to see the difference in pricing by regions of the country. It is worth driving a thousand miles to save 5k to 20,000 bucks on various models. You will note, upon occasion, that pricing can be directly related to distance traveled from the plant where they were constructed...but not always. Georgia and Texas always seems to be selling units extremely cheap. Northern IN, where a large chunk of all campers are made, can be a good place to go.

Depends on what you pay for it new. If you are a good negotiator you should be able to buy new for at least 35% off the msrp. This means you will lose a lot less than the guy that pays full list. They will both depreciate down to the same level after a couple years.


B.O.

donn0128 wrote:
You can figure 20-25% the first two years. 50% at around the 10 year mark. Of course that is based on condition, and how you take care of it.

An RV is going to depreciate much faster than that. No way a 10 year old RV is worth 50 percent of new vehicle MSRP or original purchase price for that matter. Furthermore, a 2 year old used RV is going to depreciate much more than 20 to 25 percent. Automobiles depreciate around 35 to 40 percent after 2 years, and I suspect RVs depreciate even more rapidly due to limited demand and limited financing options. Buying an RV is not a money making endeavor, to say the least.

Excellent article!

BTW, the one exception I can think of to the depreciation problem is Airstream trailers. They are highly collectable and a well restored older one may well APPRECIATE in value while you enjoy owning it.

The downside is that they're not cheap to buy.

I had THIS book marked,just took some time to find it.

beemerphile1 wrote:
I buy what I want and assume it will be worthless when I get rid of it.

I think the key point here is that you can't sell your house and put it all into an expensive new RV when you retire and expect to get your money back out of it when you can no longer continue on the road. You need an exit strategy that allows for that fact.

You can figure 20-25% the first two years. 50% at around the 10 year mark. Of course that is based on condition, and how you take care of it.