Depreciation, why so much with RV's

[bobkatmsu]

I've seen all kind of numbers on this web site when someone is buying or selling a RV on depreciation. They all add up to the fact depreciation on a RV, especially a motor home is huge. Simple enough question...why? I imagine the answer isn't quite that simple. Look forward to reading your responses.

[DallasSteve]

wa8yxm wrote:
There is an old saying that a CAR loses 1/3 of it's value when the salesman hands you the keys.

So your 200,000 dollar Mansion on wheels is only worth 133,333 when you first put it in DRIVE . And you still have your foot on the brake.

And in both cases you lose a certain percent the minute you sign the contract (6.25% in Texas) for sales tax (except if you live in a few no-tax states). You will never recover the sales tax from another buyer.

[DallasSteve]

NMDriver wrote:

rgatijnet1 wrote:

Travel by car, train, boat, or airplane, and buying all meals at restaurants, and staying in hotels, are all money that is 100% gone.
Depends on how you travel. By car I can save quite a bit versus pulling my 5er. Just in fuel. Plus being able to go 800 miles a day instead of at most 400 saves on accommodations and food.

I can also fly round trip to DC for $225 and I can not drive there and back for less than $2500 in fuel alone. So I can spend the other 2200 on lodging and food.

If you add up all of the cost to travel, you will find that RV travel is still the most cost effective, not to mention all of the places you experience on the way to any destinations. Again a car can give you the same experience for less money and I guess you are saying the value of the RV is not lost money. Well neither is the cost of the car.

Having the total freedom to travel on your own schedule is priceless in my opinion.

You have freedom to travel regardless of the mode or you are not free to travel for job, family, etc. reasons with or without an RV.

I agree that if you are making a trip from New Mexico to DC it's cheaper to fly and stay in hotels. If you're traveling from New Mexico to DC over a 3-month period and you want to stay at 50 places in between the air and hotels gets a lot more expensive.

[cwdavis]

I'm a little late to this one, but thought it was worth pointing out that the total depreciation suffered by RVs and autos is the same over their lifetime, 100%.

RVs cost more at the outset and are driven less, plus may have a tougher build quality, so they last longer.

Our 18 year old car is about worn out; we'll be buying a new one soon. Our 23 year old coach has about 150,000 mi on it and is still going strong.

So realistically, trying to compare the two is like comparing apples & oranges.

[toedtoes]

Air travel is different from RV travel. Car/hotel travel is different from RV travel.

One is not inherently better than the other. There are a lot of factors involved.

[4x4van]

rgatijnet1 wrote:

NMDriver wrote:

rgatijnet1 wrote:

Travel by car, train, boat, or airplane, and buying all meals at restaurants, and staying in hotels, are all money that is 100% gone.
Depends on how you travel. By car I can save quite a bit versus pulling my 5er. Just in fuel. Plus being able to go 800 miles a day instead of at most 400 saves on accommodations and food.

I can also fly round trip to DC for $225 and I can not drive there and back for less than $2500 in fuel alone. So I can spend the other 2200 on lodging and food.

If you add up all of the cost to travel, you will find that RV travel is still the most cost effective, not to mention all of the places you experience on the way to any destinations. Again a car can give you the same experience for less money and I guess you are saying the value of the RV is not lost money. Well neither is the cost of the car.

Having the total freedom to travel on your own schedule is priceless in my opinion.

You have freedom to travel regardless of the mode or you are not free to travel for job, family, etc. reasons with or without an RV.

Yep, some people do not mind dealing with an airline schedule, restrictions, limited airport service, and checking in hours ahead of a flight. I get it.
Now add in the extra cost of pets, which many RV'rs have. How much for boarding fees? How many hotels allow pets?
I understand that traveling in an automobile, especially with pets, is a not that much fun. I've been there, which is why an RV is better.
If it is just a couple that travels, with no pets, I agree on most of your examples.
Also try to get that $225 airline fare, any day, any time, at a moments notice. It can't be done. So much for total freedom to travel regardless of mode.

-Yes, you can save "gas" money by driving a car instead of an RV, but I'm not sure how you can drive double the distance (800mi vs 400mi)? Last time I looked, most RVs are running near the same speed as other autos; 75mph vs 65mph certainly doesn't double my range in a day of driving.
-You can fly round trip to DC for $225 per person, but how many of us travel alone? And don't even get started on airline scheduling, parking fees, check-in, checking luggage, getting through security, boarding, little to no legroom, the "wonderful" snacks/meals served on board...
-An additional value of the RV over the car/plane is the ability to stop and eat your own food wherever/whenever you want, sleep in your own bed whenever/wherever you want, use your own bathroom whenever/wherever you want, and even have meals prepared (by your SO) and eat while traveling.

[1968mooney]

Ralph Cramden wrote:

NMDriver wrote:

toedtoes wrote:
I do stand firm against used undies.

You mean you will not wear them I guess not "stand firm against them" 🙂

There are vending machines in Japan that sell used undies....so I have been told.

Many army surplus outlets sell used shorts, long johns, t-shirts, etc. and someone buys them. Preppers maybe? link

No need to go to Japan.

Many for sale on Reddit, Craiglist, Ebay etc. I'd post some links but that would get this post removed, which it will probably be regardless.

They do not depreciate either, in fact they appreciate in value.
I've often thought of selling some of mine as the wife usually throws them away LOL.

3oaks wrote:

toedtoes wrote:
......................................
Oh, and because so many are poorly made to begin with that after a couple years on the road with an owner who doesn't do any maintenance like sealing, the whole rig can be falling apart.

😉

I believe that covers it.

You need not wait a couple of years, just go to any dealer lot or show and look closely. Many are falling apart when they roll out of the factory door. A lot of buyers don't know or believe that, but banks and dealers certainly do. I sit on the board of directors of a credit union, and our RV rates are set in stone at 8.5%. Its one of the few segments we have taken losses on over the years when people walk out on a drag.

I broke down and went to the Pittsburgh RV show yesterday. Lots of falling apart stuff there. It's hard to believe they display some of it. I did not notice any improvement over last year in build quality, in fact it very well could have went the other direction. I love the $2 cheap Chinese LED strips they're now all using under counters and the Wi-Fi ranger they are going to that is also a piece of low grade junk.

9 acres of fast depreciating garbage, and this year a first time appearance by Camping World who had a load of hired guns. They were the only ones I noticed running up to attendees with hyperactive sales pitches.

And you encourage new "prospective" RV'ers into this lifestyle. They finance the junk for 20 yrs. and never recover from the loss.

[Ralph_Cramden]

NMDriver wrote:

toedtoes wrote:
I do stand firm against used undies.

You mean you will not wear them I guess not "stand firm against them" 🙂

There are vending machines in Japan that sell used undies....so I have been told.

Many army surplus outlets sell used shorts, long johns, t-shirts, etc. and someone buys them. Preppers maybe? link

No need to go to Japan.

Many for sale on Reddit, Craiglist, Ebay etc. I'd post some links but that would get this post removed, which it will probably be regardless.

They do not depreciate either, in fact they appreciate in value.
I've often thought of selling some of mine as the wife usually throws them away LOL.

3oaks wrote:

toedtoes wrote:
......................................
Oh, and because so many are poorly made to begin with that after a couple years on the road with an owner who doesn't do any maintenance like sealing, the whole rig can be falling apart.

😉

I believe that covers it.

You need not wait a couple of years, just go to any dealer lot or show and look closely. Many are falling apart when they roll out of the factory door. A lot of buyers don't know or believe that, but banks and dealers certainly do. I sit on the board of directors of a credit union, and our RV rates are set in stone at 8.5%. Its one of the few segments we have taken losses on over the years when people walk out on a drag.

I broke down and went to the Pittsburgh RV show yesterday. Lots of falling apart stuff there. It's hard to believe they display some of it. I did not notice any improvement over last year in build quality, in fact it very well could have went the other direction. I love the $2 cheap Chinese LED strips they're now all using under counters and the Wi-Fi ranger they are going to that is also a piece of low grade junk.

9 acres of fast depreciating garbage, and this year a first time appearance by Camping World who had a load of hired guns. They were the only ones I noticed running up to attendees with hyperactive sales pitches.

[valhalla360]

GordonThree wrote:
Wait, wait, people buying used RVs sleep in the previous owners bed? I've heard of frugal, but cheaping out on a new mattress?

Maybe if the previous owners were murdered by a knife wielding maniac while they were in bed...

Most RV's get less than a month of use per year, so it's not uncommon for them to be in near new condition.

As far as the original question: Nothing special about RV's. Same as cars, boats, planes, furniture and any other consumable goods. Used takes a big hit compared to new.

There may be a little confusion regarding MSRP vs actual purchase price also.

[toedtoes]

NMDriver wrote:

toedtoes wrote:
I do stand firm against used undies.

You mean you will not wear them I guess not "stand firm against them" 🙂

There are vending machines in Japan that sell used undies....so I have been told.

Many army surplus outlets sell used shorts, long johns, t-shirts, etc. and someone buys them. Preppers maybe? link

I guess that's up for interpretation. 😉

I know many people who buy most everything used. I guess it's all in your personal comfort level.

[gbopp]

GordonThree wrote:
Wait, wait, people buying used RVs sleep in the previous owners bed? I've heard of frugal, but cheaping out on a new mattress?

Where did you sleep when you were in the military :@

[NMDriver]

toedtoes wrote:
I do stand firm against used undies.

You mean you will not wear them I guess not "stand firm against them" 🙂

There are vending machines in Japan that sell used undies....so I have been told.

Many army surplus outlets sell used shorts, long johns, t-shirts, etc. and someone buys them. Preppers maybe? link

[rgatijnet1]

old guy wrote:
Fireguard is right. I watch the RV buying shows on wednesday night and I just can't believe the price people get quoted on that show. I would walk out if they thought I would be dumb enough to pay that amount. when I buy a car I pay at or below invoice price, when I buy a RV I pay in the 30% bracket.

Those are SALES shows that are paid for, and sponsored by, LAZY DAYS RV Sales. They MAY be a little biased on the message they want to give the people that watch them.

[Ductape]

westernrvparkowner wrote:
Got to factor in that original discount when purchasing new. If the rig listed for $100K, sold new for $75K and was resold Three years later for $50K the depreciation was 33 percent, not 50 Percent. That is actually in line with what autos depreciate.
You also need to consider that as you get into the higher end, the dollar value has less meaning to the buyer. Someone who can write a check and not blinkfor a $500,000 plus rig isn't going to pinch pennies to take a used rig that may not be exactly what they want. The price benefit equation often goes out of whack when you are dealing with wealthy buyers.
And finally, much of those wickedly expensive options are valueless in a few years. I looked at the sticker of my pusher and the 42 inch LCD TV was a %4500 option. Today, I can buy a better, bigger one at Walmart for a couple of hundred.

Spot on. The big depreciation numbers are not real. Unless you believe in MSRP that is. We just traded motorhomes and the old one depreciated less percentage than most cars of the same age and mileage.

Of course if you wish to drink the MSRP coolade, the old one was worth more at trade in than we paid for it. On (dealer) paper LOL.

[toedtoes]

old guy wrote:
Fireguard is right. I watch the RV buying shows on wednesday night and I just can't believe the price people get quoted on that show. I would walk out if they thought I would be dumb enough to pay that amount. when I buy a car I pay at or below invoice price, when I buy a RV I pay in the 30% bracket.

Those shows (and the house buying ones) are paid for by the industry. So they show people buying more than the RV (house) is worth in order to convince the public to pay more. Reality is far different and the majority of people do not overpay like that. There are always some who do - either because they have enough money not to care or because they don't know better. But most people buy at a more realistic price.