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DallasSteve's avatar
Sep 20, 2015

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.
  • Check the tire weight ratings. If you are looking at really cheap tires with one manufacture, VS good tires with another, that will save you from replacing some $60 tires with new ones that might cost $120 each for a quality tire.

    If one brand has tires on the edge of the weight limits, you might also find yourself upgrading from 15" rims to 16" rims to meet your needs for reliable tires!

    Remember that a 16,000 GVWR fifth wheel will have around 20% on the pin, or 3,200 pounds in that case. So a pair of 7,000 pound axles will carry around 13,800 pounds maximum, or very close to their limits when at the max GVWR. Some fifth wheels have more pin weight or less. Pay attention to the empty pin weight and water tank locations. If to close to the pin, then it will add substantial weight to the pin while camping.

    The 100 gallon fresh water tank on my motorhome can carry 800 pounds of water! Most RV's do not hold that much water.

    Also don't buy a 2500 series truck first, and think 'well the dealership says it can tow "anything" because it can not. You will really limit yourself to what trailer you can buy and tow safely when you get the truck first, before deciding on the RV. Look at RV's and find the empty pin weight. Most good fifth wheel hitches will come in a 200 pound crate! You probably plan on having 500 pounds of passengers in the truck along with cargo in there.

    So start looking at the pin weight + 700 - 1,000 pounds of weight in the truck. Then look at a truck with plenty of cargo rating. At least it is much easier today to find a truck with a 4,000 pound cargo rating than in years past.

    Good luck,

    Fred.
  • Golden,

    Thanks for the tip, but at this point that's not a concern for me. I'm planning to live extended periods in the travel trailer as I may take jobs in some different parts of the country. I'm not going to buy a tow vehicle. Either I will pay someone to haul the trailer when I move or I will rent a truck to move it myself, but then I would have to double-back for my car so it will probably be option 1. When I retire in about 5 years I plan to sell the trailer and get a Class C or Class A and maybe a toad in order to tour the country.
  • You forgot about the cost of the "quality". If in fact the quality is better the maintenance and durability should be better (less costly). So is the true increase in price really $7k factoring these other difficult to quantify attributes?
  • mich800

    Actually, I didn't forget about that, but I didn't mention it because as you say it's difficult to quantify. One other point I didn't mention is Grand Design seems to warrant full-time use as opposed to many other makers. On their home page it says "Full-Time Living?" and it has a menu link for "Full-Time Living?" that says:

    All our Fifth Wheels and Travel Trailers are “Extended Stay Approved”. This means that we have engineered them with many of the residential-style qualities found in a fine home. To this end, we have created spacious open living areas and appointed them with extra large windows, large refrigerators, walk in closets, large queen/king beds and many other home-like amenities. These features help translate your extended stay experience into full-time enjoyment!
  • You forgot the $7,000 in principal. Depending on how many months, that's at least another $50.00 per month and could be as much as $150.00 per month.
  • Wing Zealot

    I didn't forget it. That's where the depreciation comes in. Sure you have to pay principal, but if there's no depreciation you would get it all back when you sell it. Maybe that's confusing, but as a former CPA I'm pretty sure my logic is sound on this one. In this case the $20 depreciation doesn't look like enough, but that's because I'm just looking at the difference between the two vehicles.

    Edit: Thinking about this further, if the two vehicles lost 50% of their value over 10 years that would be a difference of $3,500 divided by 120 months for a difference in depreciation of about $30 per month. So maybe my $20 depreciation should be $30 depreciation. How much value do you think they would have left after 10 years? Anyway, the total difference is probably still under $100 per month. I was thinking today, if I was comparing two apartments and one was a lot nicer and the difference was $100 per month, I'd take the nicer apartment.