Depreciation on trailers
If I bought a good branded, nice layout trailer for $18K out the door and kept up the maintenance so it was always in good condition, what value would it hold in 3 years? 5 years? Thanks.
Forum Discussion
16 Replies
- I have done well with all of my TTs.
My first was a used 78 Prowler. Paid 2300, used it about 4-5 years and sold it for 3200.
Bought a new 2001 Wilderness in 2000 for 15500 out the door. I had seen this unit for 25-28K all over town until one dealer want to sell his bad.
I sold it in 2010 for 9500. Asking prices for used ones nationwide were 15K. It was sold in 15 minutes with backup offers.
My current TT was bought far below MSRP, so I expect to well on it when the time comes.
I always pay cash and always sell my old units, afterwards. - Any RV depreciates A LOT in the first five to 7 years, and that doesn't take into account the impact a sour economy can have on used unit values.
If you want to avoid some of the depreciation 'pain' find a well cared for used unit; they are out there, often through private sales. We bought our first RV that way (fifth wheel) and enjoyed if for 5 years before moving to a new TT. Like a car, an RV is not an appreciating asset, but is a great investment in good times! nevadanick wrote:
Depends on demand when its time to sell. I dont think you can go by NADA or KB. I paid 22k for my tt new in 07, its an 08 model and NADA says starting retail is 24k, avg 18k and low 14k, yet in my mind i would be happy to get 10k. Where do you start ? What will the market bear ? If you find someone that has no clue about the inflated msrp on rv' s then you might sell and not lose much. Mine was 33 msrp.
Yeah, NADA and KBB are pretty much worthless IMHO when it comes to pricing used RV's.- Our fiver was 2 years old and virtually unused. We bought it from the bank that had repossessed it for 50% of MSRP.
- We had a $15K budget and a good idea of the floor plan we wanted. The sales man said "Used" and we picked up a three year old, 26 foot Dutchman for $13K.
It was not so simple of course; the process took several months and several area dealers before we found what we wanted.
Whether we got a good deal, a great deal or a poor deal does not matter. We got what we wanted at the price we wanted.
I do not believe there is anyway to cost justify a TT. - If ya gotta ask, you can't afford it. if you paid $18,000 for it, somebody else probably paid 15-16 for one and yours immediately drops to $13,000.
bumpy JJBIRISH wrote:
End of year – approximate depreciation…
$18000
1 - 18% 3240 = 14760
2 - 10% 1476 = 13284
3 - 7% 930 = 12354
4 - 6% 741 = 11613
5 - 6% 697 = 10916
I think, even that is a bit optimistic. Especially the latter years.- There is a huge difference in what people pay for the same unit new. Some pay the "list" price while others will negotiate down from there. 30-35% or more off the "list" price is not uncommon. Often you will see 2 or 3 year old trailers for sale at more than what a good negotiator can buy a new one for...
B.O. - I have bought two new and two used units. Both used were trouble free, both new had multiple problems the first three years. My next unit will be used.
- There will always be what ifs to deal with… demand, location, season, condition…
You still need a reasonable depreciation plan to work from, a mark to meet or beat unless you don’t care about how much your loss will be or believe in just winging it all the time…
I don’t use the NADA or KBB either… this is a schedule I used to buy and sell RV’s when I was younger that seemed to serve me well, I don’t know where it come from or who to credit for it, I just found it to be a reasonable point to work from on any type of RV or in any economy… it may not be of value to anyone else… everyone sees value in a different way…
It saves time when buying to… if the asking price is too much out of line, I can quickly assume the seller is underwater and will most likely not be able to sell it to me at a price I am willing to pay… so I just move on…
