DallasSteve
Sep 20, 2015Nomad
Comparing Apples To Other Apples
I went to the RV show yesterday in (where else) Dallas. The Big D. I went with a particular Jayco travel trailer in mind and I also looked at some similar models from other manufacturers. A 37 footer from Grand Design caught my eye. I'm not sure why but it seemed nicer and better built. Do others have an opinion of the quality of Grand Design versus Jayco?
But the real point of this post is, how much is the nicer trailer worth to me. The GD would retail around $40,000 after negotiations and the Jayco around $33,000. At first I was thinking "I can live with the Jayco to save $7,000. But is it really $7,000.
In my first career I was a CPA and I learned about cost accounting, the process of determining what things really cost. And I got to thinking how much extra per month would the GD cost over the Jayco. If it's $100 per month I'd probably be willing to pay that to have the nicer trailer. If it's $200 per month, probably not. Some people will set their price point higher; some people will set it lower.
So I got to thinking about what are the differences in the cost. These are what I see as the principal areas of cost and their differences in this case per month:
20 - Depreciation
30 - Financing (interest)
10 - Insurance
0 - Tow vehicle (negligible)
0 - Gasoline (negligible)
60 - Total
Am I missing some other significant costs that could be different? I would like to look at these two trailers again before I decide, but I think I would spend the extra for the Grand Design. I'm surprised the difference in depreciation and financing is so low, but I think my estimates are pretty close.
But the real point of this post is, how much is the nicer trailer worth to me. The GD would retail around $40,000 after negotiations and the Jayco around $33,000. At first I was thinking "I can live with the Jayco to save $7,000. But is it really $7,000.
In my first career I was a CPA and I learned about cost accounting, the process of determining what things really cost. And I got to thinking how much extra per month would the GD cost over the Jayco. If it's $100 per month I'd probably be willing to pay that to have the nicer trailer. If it's $200 per month, probably not. Some people will set their price point higher; some people will set it lower.
So I got to thinking about what are the differences in the cost. These are what I see as the principal areas of cost and their differences in this case per month:
20 - Depreciation
30 - Financing (interest)
10 - Insurance
0 - Tow vehicle (negligible)
0 - Gasoline (negligible)
60 - Total
Am I missing some other significant costs that could be different? I would like to look at these two trailers again before I decide, but I think I would spend the extra for the Grand Design. I'm surprised the difference in depreciation and financing is so low, but I think my estimates are pretty close.