Why not to buy used.

Terryallan wrote:

soren wrote:

Terryallan wrote:

DallasSteve wrote:
As a former CPA I must comment that depreciation is a cost of owning an RV even if you choose to ignore it to make yourself feel better. If you spend $100,000 on a motorhome and you keep it 50 years until you die you still lost the use of that $100,000 for other purposes. If you don't care about that extra $100,000, that's fine, but depreciation is still a real cost to anyone wanting to get into RVs.

Actually that makes no sense. ANYTHING you buy ties that money up so you can't use it for anything else. Sad that you have to put money before anything. And a question. Who did you buy your RV for? You? or the next guy. I bought mine for me.

"Actually that makes no sense."


Seriously? I would never go onto a forum about brain surgery and offer advice on how to operate, for a pretty simple reason. I would have no idea what I was talking about. In a similar vein, here you are, arguing with an accountant, yet the concept of "Lost Opportunity Cost" is something that makes no sense to you? That is simply amazing.

You might want to grab a copy of, "the millionaire next door". It's a useful tool in explaining the difference between those that understand that a lifetime of discipline, and solid decision making, backed by solid financial education, can leave you retiring young and wealthy, on the same paycheck that most squander away. An obvious component of that success is understanding why you don't succeed by buying new toys (boats, RVs, ATVs, etc) and throw away 60% of your purchase price, in the first couple or years, in depreciation.

Obviously we dissagree. Any thing you buy takes money away from something else. Like you can go to a nice restaurant, and spend more, or got to a fast food and spend less. But then you get less. Just like you do when you buy used. It only take a little more to go first class. However. IF you want to go thru life using other people's throw aways. It's good for me. So maybe when after 10, ot 15 years of using my TT. You will step up and pay me 40 percent of the MSRP for a worn out TT. That I got ALL the good out of.
As I said. RVs don't depreciate near as much as many of you think they do. Atleast not around here. And if you have to finance. the paymment on a new one are actually lower than on a used one.

Yes I financed mine for 12 years. Just in case something happened. I wanted a cushion. Paid it off in less than 5. Truth is few real working people can pay cash for a RV. So you will pardon me if I like to have firsties instead of worn out seconds.

Doesn't matter if it's my post, or the accountant's, there is no "disagreement" regarding the facts of economics. As for some strange idea you have that most of us are somehow overstating depreciation, I guess it's what you need to believe to justify your reasoning, but it has little to do with reality. As for depreciation not being significant in your area, I guess it's a matter of how willing you are to find a good deal, In your case, you have no interest in used RVs, so no incentive to find the right one, at the right price. Your concept of paying huge amounts for a worn out 10-15 year old trailer is simply ridiculous. I'm talking about the nationwide availability of things like my MH which was seven years old, barely used, in excellent condition AND sold for 40% of the original sale price. At the time of that purchase, good friends of ours bought a new one. Same brand, same model group. Three years later they traded it it in, for $60K less than they paid. in three years of use, they LOST $15K more in depreciation than we SPENT for essentially the same product.

Like I said, I encourage you, or anybody to sing the virtues of buying new. If your idea of "going first class" is overpaying for a massively depreciating, poorly built liability, AND taking out a loan to do so, well bless you heart. I'll pass.