Potential White Elephant

[pconroy328]

For a couple of reasons, we're going to go through with a classic White Elephant Class C purchase.

It's a family friend, they really need to sell and we're ready to try our hand at a starter Class C.


It's a 2008 with 76,000 miles. Way more miles than I'd like but the price is about half of what a dealer would ask and it is our small way of helping a friend who needs the money.


Low and behold, when I went to secure financing I'm running into the problem that the miles are too high. Seems like most lenders won't lend anything after 60K.

We'll figure out the financing, but I'm thinking I'm buying a White Elephant. If/when I want to sell this thing in a couple of years, the next potential buyer will have the same trouble: they won't be able to secure a loan.

I guess I'm looking for some thoughts, as I like to think ahead. What's the general approach with unloading high-mileage motorhomes?

Do they inevitably end up as a Trade In? Will there probably be a dealer, somewhere, that's willing to take it as a trade in? Note I'm assuming we're going to like the Motorhome lifestyle and trade up.

Thanks!

[johnnyrv]

There will be a dealer who will take it as a trade, if you buy an rv from them. They will just resell it to a wholesaler at a rock bottom price.

[Jbrowland]

Islandman wrote:
Don't spend a lot of time worrying about depreciation or that you might be sorry that you didn't buy a larger unit. You're getting a pretty good deal an a nice unit, what more could you want? You will enjoy this Class C and be way ahead of those folks who buy new stuff and watch it depreciate quickly, you will be be enjoying your unit and not be in big debt like so many other folks. If for some reason you want something bigger or newer in a few years, you will be way ahead since this one will be paid for and probably worth just as much in 5 years as what you're going to pay for it now. Buy and enjoy, and don't refer to it as a possible white elephant anymore!

I agree! If it is a good deal and you like it then buy it. Go have some fun. Sounds like you agree. Congrats and good luck.

Mileage doesn't concern me. I like high mileage. It means I pay less and possibly pay cash. Who the heck wants another mortgage? Mine may have 125,000 miles on it but it is in nice shape, everything works on it, and most importantly I don't have a loan. I almost bought new. If I had, I would still owe double what I paid for my used class C IN FIVE YEARS FROM NOW! Yikes.

I think every first time buyer should buy used within their price range. Whatever your hobby is.

[Islandman]

Don't spend a lot of time worrying about depreciation or that you might be sorry that you didn't buy a larger unit. You're getting a pretty good deal an a nice unit, what more could you want? You will enjoy this Class C and be way ahead of those folks who buy new stuff and watch it depreciate quickly, you will be be enjoying your unit and not be in big debt like so many other folks. If for some reason you want something bigger or newer in a few years, you will be way ahead since this one will be paid for and probably worth just as much in 5 years as what you're going to pay for it now. Buy and enjoy, and don't refer to it as a possible white elephant anymore!

[dsurette]

Look at as an excellent opportunity to get into RVing without a huge outlay. But I have a feeling that if you are like many of us, it won't be too long before you use it as a trade-in for something bigger and better.

[pconroy328]

Bordercollie wrote:

Have you done homework about the various lengths and floor plans, that are available in various brands and year models? Appliances, AC units, , fresh water pumps, converter/chargers and batteries may need replacement or repairs when they're around 10 years old.
Tires at $300 apiece need replacing for safety when 5-6 years old regardless of tread depth/appearance. Insurance, registration, maintenance and storage costs should be considered when deciding whether motorhoming is a hobby/lifestyle for you and family.

I think so - we've been looking at RVs for, oh, maybe 3 years. I've resisted, I've whined, I've thrown tantrums in dealerships.

I guess she just wore me down. 🙂

I've been reading and lurking on RV net and others about possible repairs and expenses. I've mentally prep'd myself for a possible $3K spend if it needs it.

I think we'll be OK. Impossible to predict, but again, we know the history of the vehicle, they were on top of all maintenance. The tires are < 1 year old.

If it doesn't work out - then it's an expensive lesson. And if it does work out then it's an expensive hobby. 🙂

[Bordercollie]

If your friend isn't in a hurry to sell, try driving and camping in it to see if you really like the size and floor plan, and whether you and family will like motor homing long term.

Have you done homework about the various lengths and floor plans, that are available in various brands and year models? Appliances, AC units, , fresh water pumps, converter/chargers and batteries may need replacement or repairs when they're around 10 years old.
Tires at $300 apiece need replacing for safety when 5-6 years old regardless of tread depth/appearance. Insurance, registration, maintenance and storage costs should be considered when deciding whether motorhoming is a hobby/lifestyle for you and family.

[Mocoondo]

pconroy328 wrote:


Amen. I'm still wrapping my head around the depreciation curve associated with an RV. I think it's steeper than a boat or a pool! 🙂

Write this down and tuck it away: You will lose half.

[winnietrey]

Most expensive way to buy anything is twice, in my opinion. If it is what you want, ( size and floor plan) then could be a great deal. If not and you end up getting rid of it in a couple of years, you may not come out too well.

Other thing, I notice is, it has no slide. Some folks don't want a slide, but I think they are in the minority. That can make it harder to sell. ( we have a 2001, 239 coachman, I would not want one in that size without a slide) Although I love the small MH length, of ours

Other thing to think about, rather than depreciation, is the concept of usage. If you are going to use it, and enjoy it. Then you will get your money out of in fun and enjoyment. Reguardless of the depreciation curve.

[pconroy328]

smkettner wrote:

Remember it will only be worth half of what you pay by the time you actually go in to trade up.

Amen. I'm still wrapping my head around the depreciation curve associated with an RV. I think it's steeper than a boat or a pool! 🙂

[pconroy328]

cgmartine wrote:
Did I read correctly? 76 thousand? as in $76,000? If that is how much the OP is paying, that is more than twice what it is worth, regardless of its pristine condition. It is commendable to help a friend, but also not wise to burden your own family with such a purchase (sorry, just my own personable feeling). I agree that it is worth between $25,000 to $28,000, max.

No - 76,000 miles. Yes I agree it's worth $25-28K and our price is less than that.

I appreciate all of the advice, and yes my plan is to get it looked over completely. I hadn't thought about getting the front end looked at - I'll add that to the list.

[Islandman]

Sounds like you have a good deal lined up, the engine be it Ford or Chevy will last you a long time, and if the unit was well maintained all the systems will be good for many years too, if you keep the maintenance up. After a few years, say 5 or 10, the mileage will not mean so much. There's no doubt a lot of life left in the baby and it will serve you well, plus it sounds like it's well within your budget range. Put aside a little money for new tires and some of the routine things that need replacing with higher mileage and age (fan belts, hoses, etc.)

[time2roll]

Ask him to let you test drive it for the day. Take it down to a dealer and see what it is worth in trade. Adjust the price accordingly. I would pay maybe $5,000 or 10% over trade in value max.

Remember it will only be worth half of what you pay by the time you actually go in to trade up.

[John___Angela]

Well, assuming it is a V10 ford E450 chassis the mileage isn't even close to being considered higher mileage. Assuming you know how the maintenance is done I would consider the unit at double that mileage assuming the price is right and also assuming you are okay with the floorplan etc. I would start being nervous right around the 200,000 mile mark and factoring in long term rebuild costs of everything. At 76,000 miles it wouldn't even enter the conversation.

JMHO

[Dusty_R]

Don't know what your stick home status is, but maybe a Home Equity Loan.