Buying a Former Rental Class C. How many of us out there?

[IAMICHABOD]

While researching these pages for my next Motor Home I saw a few threads discussing Rentals, most were Pros and Cons but very few posts from people who had purchased one.

I thought it may be a good resource and helpful to hear from these people. The good, the bad, what they liked and what they didn’t. Also if they had any problems, things they changed, if they would recommend this to others or do it again.

Here is my story: I am not a novice, having owned a Class A for more than 15 years and doing the camping thing with my wife and two daughters, I can say “been there done that” But life changes, and I sold everything so I have been away from this for several years. Starting over I lurked here for a while and got a lot of good insight then went looking.

My criteria was: A Class C within by budget, less than 30 feet so I can keep it at home, saving storage $, a rear bed, and a lot of storage space.

What fit that was Winnebago, Fleetwood and a few others, what I found mostly was Jamboree / Tioga 26Q. In the year models 2002 thru 2006. I did my home work looking at NADA and other sites to find the fair prices for the models that I was looking for.

After several months of searching the internet, Craigslist, private ads and Dealerships for a Class C that suited my budget and needs, this is what I found. Of the dozen or so I inquired about.Most were upsidedown in their payments, owing more than they were worth. All were on Ford Chassis, 7 needed tires, all had the original 7 to 10 year old tires, and they all needed repair of the awning and most needed some work inside or out and the maintenance records were sketchy, but most had low mileage. The Dealerships offerings were better but they had a profit margin to maintain so I got older models within my budget or huge up sales that didn’t work for me.

My next step was looking at the rental market for sales. In my area there are 2 large companies that have rental sales, Cruise America and El Monte RV,who also sell Class A RVs.

First up was El Monte RV Their units are production RVs that are made by major manufactures, with TV antennas and hookups inside and out, Ducted A/C and heat, 2 house batteries, a rear ladder and parts are readily available from those manufacture’s. I looked at their web site and it detailed their warranty and what was checked and serviced by their factory trained technicians. The unit I looked at was like new inside, the upholstery on all the seats was new as was the floor mat in the driver’s area, it had a new mattress, still in plastic and a new bedspread. All of the curtains were new also. Newer (2010 mfg date) tires with 98% rubber and the mileage was ninety thousand (90,000).

Then there was Cruise America: Their units that I looked at seemed to be Spartan,no TV antenna or hookups for one,non-ducted A/C,small counter space and only one battery, no rear ladder for inspection and maintenance of roof and built just for them, they were all “refreshed” their words not mine. They offered extended warranties at a huge cost. All had high mileage, one hundred and thirty thousand (130,000) or more and the price range seemed a little high. The sales staff had a take it or leave it attitude and were not very forthcoming when asked about maintenance records and service,they claim to have proprietary info in those records,It doesn't seem to be a problem for El Monte RV.

At El Monte RV I took a test ride; This Unit was a 2006 Tioga 26Q on a Chevrolet Chassis it rode
Drove and handled much better than the Fords that I had driven. It also had more leg room and was quieter. We got back and I asked about the service and maintenance on it, the salesman, Joey, handed me a 28 page single spaced document asked if I wanted some coffee or something to drink and said “read this and if you have any questions I will answer them”.

It detailed everything that was done before and after each rental, the mileage, generator hours and hours billed. Each time it was washed and detailed inside and outside, all fluids were checked and replenished if needed, the holding tanks were washed, LP system was checked for leaks, all torque on wheel lugs were checked, brakes front and rear checked for wear and cracks, pressure in tires, all appliances, generator oil, lights inside and outside, the list goes on and on.

It also listed all oil changes,coolant change,trans service,fuel injector service and cleaning,fuel filters,air filter, new brakes, all repairs and replacements all with date, mileage and time spent in complete detail from day one to when it was pulled from the rental fleet and was refurbished. I have a complete service record on this vehicle.Also the service records on the Onan Generator,all oil changes,air filter and spark plug replacement with hours and date. I negotiated a good deal with them and am very happy with my purchase.

It came with a 1 yr. 12000 mile power train warranty and 30 day on all appliances. It also came with a 28 page maintenance record that detailed everything. Also the original sales packet from Fleetwood with the manual and serial numbers on all appliances,refrigerator, microwave,furnace, AC, water heater, etc. and the manual for the Chassis. I have had no problems with it so far.

(ON EDIT) 5 Years and close to 14000 miles.Just Scheduled Maintenance and new tires,old ones were at the 5 year mark and I wanted new Michelin LTX M/S2s.

There were a few things that it didn’t have as it was a rental and the ones from private parties did have.
• Power steps, outside Stereo/CD don’t need or want them.
• An Awning, this I wanted and had installed. A Swivel Seat and a new Window in The Door that I installed.
• Wheel Simulators, I like the looks so I had them installed and at the same time had Tire Man valve stem kit put on.
• Replaced the Chinese WFCO with a US Made converter/charger
• It came with mini blinds and not the day/night that most have, these are more practical and have a lot less failure.

• It also came with Stainless Steel sinks,easier to maintain than the cheap plastic ones that come in the noncommercial units.
  

I am very happy with my Rig, it suites my needs and it was in my Budget range, I think I got a good deal.

So if you bought a rental please share your experience here for others to use as a resource.
Or if there are any other questions that have not been covered in these pages, just ask, there are many helpful people on this thread.

[winnietrey]

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[w3ozwizard]

Thanks for advice folks but 3 daughters with college educations paid for by the bank of daddy so there is already a second mortgage so that is not an option. So minimum cash flow for a MH per month is a must. Still wondering if anyone actually got a 12 year loan through Cruise America financing. Or is that just BS?

[bigcitypopo]

Road Bear RV has the nicest ones... He sells them between 20-30K miles....

SimiRV.com markets his stuff as well. my moms rig is a roadbed used rental. Awesome rig


My mom's is this one

here are the actual pics. here

[IAMICHABOD]

The advice that has been given so far has been very good and they have some good merits and problems.

On my first Motorhome,I bought used and financed. Now that worked out well because at the time I needed the deduction for the interest paid,as others said it is treated as a 2nd home and thus the interest was deductible. But I found out that about half way thru the 15 year loan period I was upside down,by the time I sold it it was just barely worth what was owed on it.

This is what I found on most of the RVs that I looked at when I was searching for my current RV. They were worth less that what was owed on them,about half way thru the loan period.

With the interest rate low I looked at maybe financing as a way to go. Now I am retired, less money and no need for more deductions and I couldn't afford any more payments.

With these low interest rates and after crunching some numbers I found that If I refied my house not only would it lower my monthly payment considerably,which I needed on this fixed income,I could take enough out to pay cash for what I wanted.

That is what I did, I have a much lower payment and a RV that is paid for.

My only advice is to do as I did and crunch some numbers and see what is the most favorable to you and your finances.

Just my 2 cents worth.:B

Good Luck.

[gotsmart]

@w3ozwizard
It's a former rental unit. If you own a home I recommend getting a home equity loan (aka: 2nd mortgage) for the purchase price + taxes, and pay cash to the dealer. At least you'll be able to itemize the mortgage interest each April, AND you'll have the title to the RV.

In 2011 when I bought my 2005 28R it had 109,000 miles on the odometer. I paid $22,565 USD (before taxes) for it. I did not buy Cruise America's extended warranty or their awning. I paid cash.

[winnietrey]

Interest is so cheap now, it is almost free. Plus you get to deduct the interest on a MH, as the IRS considers it a second home. (at least for now) And you do have to itemize deductions to get it

Our way of doing it, has been to put enough money down, so we are never under water on it, and keep the rest in the bank. Gives us a warm fuzzy, for emergencies.

If memory serves we did 12 years on a 4 year old one, not sure if you get a 20 on a used one. We got tired of it ( the payment) and paid it off early.

But 12 or 20, my thought run an amoritization schedule, calculate the interest you will pay, figure in the second home deduction, and see where your comfort level is.

I think one should not be paying so much on it every month, that they feel that's all they can ever do for vacation. Which is why the longer terms and lower payments are not all that bad of an idea in my opinion

[w3ozwizard]

Well as long as I am here and you guys have given me a lot of advise not only here but other parts of this page that has been very helpful. So I am going to ask another question or two. 1. How long a loan do most of you folks get on a used, lets say 2009 motor home? I know if I buy a new one I could get up to 20 years, but I don't want one that long a loan. But to keep expenses down I would like to get 12 years on a used one. Cruise America said they can do that. Can they? Has anyone had a loan on a used MH for that long a time? After they or someone else works out a deal, I am going to take it to my bank and see if they can beat it. But just wondering what your experience has been good or bad. Thanks

[samven1]

There are no El Monte's near me either and I went to CA to look at what they had. I was a bit skeptical of their renovations and the fact that when I asked for the service history they told me they did not have that. The unit I was looking at had 120,000 miles on it in just 4 years. With Ford and Chevy now calling for major service at 100,000 miles I felt like I would have to do all that as soon as I bought. I also worried that since these guys dont do insurance claims for minor damage and repair inhouse, without the service history you have no way of knowing if a wall or roof was damaged. That may not be a problem but my car was never the same after I hit a deer and they had to repair allot of sheet metal and trim.
El Monte seems to have many units with fewer miles, again I did not get to look at theirs but kept thinking that would be a good thing. One of my concerns was if I decided to sell or upgrade after 30,000 miles or so how hard would selling a unit with 150,000 miles vs 110,000 miles be. Both are fairly high and many younger people are use to cars lasting 200,000 but I am still a throw back to the age when you got rid of a car with more that 60,000 because thats when many problems started. I keep telling myself that newer vehicles last longer but I cant get that rid of that uncomfortable feeling.
Anyway El Monte says they provide service records from day 1 so you have some reassurance and they give you a 1 year warranty.
By the way I ended up buying new because the price difference on the unit I wanted was not that great but larger RV's would have been substantially more.

[w3ozwizard]

I was talking about the cruise america in Everett Washington. I have visited twice they seem nice.

[gotsmart]

Which outfit are you referring to? There is a Cruise America in Seattle (actually in Everett, WA).

http://www.cruiseamerica.com/rv-sales-locations/rv-sales-seattle-everett/

[w3ozwizard]

I am new here and testing to see how this system works. Used to have a MH years ago, but sold it because work was too demanding to allow me much time off. Now I am retired and want to get back into it again. Like a lot of seniors I don't have a pot of gold in the back yard so I have to look at getting back into the game as reasonable as possible. I have been looking at the used market and have seen what looks like some good deals to me at CA. I have talked to them and think I know how they work and what to expect. I know about their locations, one close to where I live in Washington State. They told me that if I see one or want to look one over that is in another location they will ship it up to our local CA dealership.

But now I have heard of El Monte RV. I have looked at their web page and I know I can call them but I do not want a salesman ringing my phone off the hook so I thought I would ask someone here how they work. Let's say you saw a MH on their web page you liked. Did you travel all the way there to just look at it, or did they make some other arrangements. The closest one to me is in Las Vegas I guess and that seems like a long way to just look. I understand they will pre-qualify you, but still I may have a long round trip just to inspect one. How did you guys handle it if you were a long way away?

[gotsmart]

The reason for $2,500+ worth of work is that the MH came with no service history. I needed to create a baseline to start from.

In May 2013 I had the plugs and boots replaced for $350. The mechanic (he is a real mechanic and the shop owner - not some 'technician') said that all 10 of my coil packs were fine and did not need replacing.

When the other shop wanted almost $1,000.00 to replace plugs, boots, and coil packs (their 'tuneup') I declined and got a second opinion.

[donrebyct]

Gotsmart, $2500+ without a tuneup smarts. But, it's best for the vehicle. I guess that should be considered a necessary expense for owning a high mileage vehicle, especially a motorhome. Don

[KristinU]

AbdRahim wrote:
I see a lot of people buying rentals. where do you get them serviced?

Nothing special about having a previous rental serviced...so wherever you'd have service done on a non-rental.

In our case, the dealership we bought from is pretty far from us, so aside from some initial shakedown stuff within our first 30 days we don't use them. We use a truck service place for chassis stuff - ball joints last year and tire rotation and realignment. Oil changes we do ourselves in the driveway and most other things we're able to do ourselves, but if we run into something we can't tackle we'd take it to the service center at a local RV dealership.

[AbdRahim]

I see a lot of people buying rentals. where do you get them serviced?