Purchasing our first Class A and depreciation

[rapidrrk]

While comparing relative values of comparable motorhomes, I did some calculating. The relative value of a used 2009 Newmar 36' Canyon Star gasser as a percentage of new MSRP to average retail price was 51.6%. A similar 36' Tiffin Allegro Open Road didn't drop to 51.5% until the 2007 model year. What could account for the higher rate of depreciation for the Newmar?

[jwmII]

Cecilt wrote:

deandec wrote:
I would hope that few new rig buyers do not pay MSRP.

Discounts seem to range from 20% to 30% on a new, no-trade in, transaction.

If you are using NADA for your observations, be aware that there is little or no market transaction data used in creating the NADA values for RV's unlike the data they assemble for automobiles.

Which is why it is hard to take the advice from so many to buy used. If you are able to get 30% off MSRP based on the OP's question and in 2014 be at 50% value on a 2009 or 2007 where is the big savings of buying used. My thinking is if I lost 20% over 5 or 7 years that is not too bad. Why would I buy a 5 or 7 year old Coach with no warranty and all the un certanties to save 20%. Considering how hard it is to determine a prie of a used Class A where is the strong economic argument that buying used is so much better. The only thing I can think of is a buyer who pays full MSRP.

When you drive that new one off the lot you will probably take better than a 20% hit. Loss.

[Deano56]

rgatijnet1 wrote:

Deano56 wrote:

rgatijnet1 wrote:
Looking at depreciation another way.....any other method of traveling, either by boat, airplane, rental car, train, etc, is 100% money in the toilet. You do not get any of your money back for any hotel bills or restaurant meals. If you want to travel, RVing is the ONLY way that you can recoup some of your expenses.

I don't think you recoup any money by rving, its just more fun and convenient for some. I would much rather sleep in my MH than a hotel

I said that you could recoup SOME of your expenses. I don't know of anyone that has given their RV away for nothing.
If they sell it for any money at all, they have just recouped SOME of their expenses, as opposed to the 100% loss of any other way of traveling.

This is true

[Effy]

The value in an RV is really intangible. The value is in joy, memories, traveling with your own stuff, own bed, own food etc and the ability to enjoy all the benefits of rolling and portable apartment. It's a vacation home anywhere you want. If you look at RV's in a dollar based value, you will lose plain and simple. I think selling any RV for more than you paid or even breaking even is elusive if not impossible. Expect it to depreciate. Know that up front, accept it, and understand the true value of any RV is in the intangibles, not the numbers.

[conceptumator]

I don't know that you can ever make having an RV work out dollar wise if you look at it like an accountant; you need to consider what you want and need and don't worry about all the statistics. Reminds me of a question that was asked to one of the early Giants of Industry (I think it may have been Vanderbilt) about how much it cost to operate his 310' yacht; his reply was simply "If you have to worry about it, you can't afford it." Always worry a little bit and use common sense, but don't let it control your life.

[vegasfoodguy]

Deano56 wrote:

rgatijnet1 wrote:
Looking at depreciation another way.....any other method of traveling, either by boat, airplane, rental car, train, etc, is 100% money in the toilet. You do not get any of your money back for any hotel bills or restaurant meals. If you want to travel, RVing is the ONLY way that you can recoup some of your expenses.

I don't think you recoup any money by rving, its just more fun and convenient for some. I would much rather sleep in my MH than a hotel

X2 A RV is not an investment, Make your best deal, Drive it, have fun. Whatever you sell it for is icing on the cake.

[kab449]

All things being the same, the price of used coaches is driven by supply and demand also. When I was looking to buy my coach I couldn't find a suitable used Tiffin at a price that would have saved me enough to make it worthwhile to buy used.

[rgatijnet1]

Deano56 wrote:

rgatijnet1 wrote:
Looking at depreciation another way.....any other method of traveling, either by boat, airplane, rental car, train, etc, is 100% money in the toilet. You do not get any of your money back for any hotel bills or restaurant meals. If you want to travel, RVing is the ONLY way that you can recoup some of your expenses.

I don't think you recoup any money by rving, its just more fun and convenient for some. I would much rather sleep in my MH than a hotel

I said that you could recoup SOME of your expenses. I don't know of anyone that has given their RV away for nothing.
If they sell it for any money at all, they have just recouped SOME of their expenses, as opposed to the 100% loss of any other way of traveling.

[Cecilt]

Deano56 wrote:

Cecilt wrote:

deandec wrote:
I would hope that few new rig buyers do not pay MSRP.

Discounts seem to range from 20% to 30% on a new, no-trade in, transaction.

If you are using NADA for your observations, be aware that there is little or no market transaction data used in creating the NADA values for RV's unlike the data they assemble for automobiles.

Which is why it is hard to take the advice from so many to buy used. If you are able to get 30% off MSRP based on the OP's question and in 2014 be at 50% value on a 2009 or 2007 where is the big savings of buying used. My thinking is if I lost 20% over 5 or 7 years that is not too bad. Why would I buy a 5 or 7 year old Coach with no warranty and all the un certanties to save 20%. Considering how hard it is to determine a prie of a used Class A where is the strong economic argument that buying used is so much better. The only thing I can think of is a buyer who pays full MSRP.

number crunching is just that, many people will be happy with good used units as many with new, thats how the world turns. New ones have there problems (shouldn't) as well as used. Do people pay list price on anything like this? You are going to be surprised if you think you are only going to lose 20% after 5-7 years of what you "paid"

Depends on how you and I interpret the OP's question. My interpretation was if a unit had an MSRP in 2009 for $300,000 the value today is 50% or $150,000. If I bought that unit in 2009 for a 30% discount off MSRP I paid $210,000. 5 years later when I sell if I can get $150,000 I am happy. That is 20% of the MSRP price.

[chevyman2]

Well you have to use the RV many many nights to recoup the cost. Then if you move your RV, that takes even longer figuring gas/fuel prices.

As Deano56 says. The most true statement Ive read.

[Deano56]

rgatijnet1 wrote:
Looking at depreciation another way.....any other method of traveling, either by boat, airplane, rental car, train, etc, is 100% money in the toilet. You do not get any of your money back for any hotel bills or restaurant meals. If you want to travel, RVing is the ONLY way that you can recoup some of your expenses.

I don't think you recoup any money by rving, its just more fun and convenient for some. I would much rather sleep in my MH than a hotel

[rgatijnet1]

Looking at depreciation another way.....any other method of traveling, either by boat, airplane, rental car, train, etc, is 100% money in the toilet. You do not get any of your money back for any hotel bills or restaurant meals. If you want to travel, RVing is the ONLY way that you can recoup some of your expenses.

[Deano56]

Cecilt wrote:

deandec wrote:
I would hope that few new rig buyers do not pay MSRP.

Discounts seem to range from 20% to 30% on a new, no-trade in, transaction.

If you are using NADA for your observations, be aware that there is little or no market transaction data used in creating the NADA values for RV's unlike the data they assemble for automobiles.

Which is why it is hard to take the advice from so many to buy used. If you are able to get 30% off MSRP based on the OP's question and in 2014 be at 50% value on a 2009 or 2007 where is the big savings of buying used. My thinking is if I lost 20% over 5 or 7 years that is not too bad. Why would I buy a 5 or 7 year old Coach with no warranty and all the un certanties to save 20%. Considering how hard it is to determine a prie of a used Class A where is the strong economic argument that buying used is so much better. The only thing I can think of is a buyer who pays full MSRP.

number crunching is just that, many people will be happy with good used units as many with new, thats how the world turns. New ones have there problems (shouldn't) as well as used. Do people pay list price on anything like this? You are going to be surprised if you think you are only going to lose 20% after 5-7 years of what you "paid"

[Mr_Mark1]

Another wrench to throw in the mix is the condition of the used coach. The smell on the inside and heavy use cannot be determined by miles. A low mileage cream-puff could have been heavily used inside. The value can be hard to figure out.

In our example, our '08 Dynasty that we bought new in April of '07 brought us 49% of what we paid after 7.5 yrs. with just shy of 70,000 miles (that's not counting the commission to consign)....worth every penny to me to pay it.

With the commission figured in, we got back 45% hard money.

MM.

[Cecilt]

deandec wrote:
I would hope that few new rig buyers do not pay MSRP.

Discounts seem to range from 20% to 30% on a new, no-trade in, transaction.

If you are using NADA for your observations, be aware that there is little or no market transaction data used in creating the NADA values for RV's unlike the data they assemble for automobiles.

Which is why it is hard to take the advice from so many to buy used. If you are able to get 30% off MSRP based on the OP's question and in 2014 be at 50% value on a 2009 or 2007 where is the big savings of buying used. My thinking is if I lost 20% over 5 or 7 years that is not too bad. Why would I buy a 5 or 7 year old Coach with no warranty and all the un certanties to save 20%. Considering how hard it is to determine a prie of a used Class A where is the strong economic argument that buying used is so much better. The only thing I can think of is a buyer who pays full MSRP.