Any financial advantages of buying new RV vs used?

[Veik]

Let say I want to buy a 55K Class C, NEW and I finance it
In perfect world - no money down, at 5% apr. for 15 years

Pros/Cons as I see them...


PROS
-zero miles on the odo
-new warranty (usually a year on the couch, 3 years on chassis)
-everything is new and has never been used or abused
-resale value???

CONS
-Depreciation hit the first year and the following years, at 5 years
-Interest on the loan
-Sales Tax (Virginia)


What am I missing?

I am trying to look for BENEFITS of buying new.
Are there any?
I am not trying to start heated discussion, just trying to figure it all out for the first time.

Thank you.

[toedtoes]

I have never felt so strongly about it to always purchase new OR always purchase used. To me, the choice of new or used is particular to the specific vehicle.

If a new vehicle can't provide me with the items on my must have list, but a used vehicle can, then I will happily buy used. If a used vehicle can't provide me with the items on my must have list, but a new vehicle can, I will happily buy new.

For me, I don't spend a lot of time worrying about re-sale, etc. - because I plan on having whatever I buy until it dies. I spend only what I consider an acceptable amount for what I want/need. Sometimes that means buying new, sometimes that means buying used. The one thing it guarantees me is that I never feel like I over-spent or sacrificed wants/needs.

[et2]

Financially speaking, to me, buying new means you don't get someone else's problems - which could cost someone buying used a ton of money. Especially something within 1-3 years old or low mileage in a MH. We've heard on this forum many times of people having problems with new units and getting ridding of them while still under warranty or one about to expire.

Not everyhing gets fixed by the original owners in many cases. They just off them to rid themselves of future problems and costs. Those costs can be pushed onto the people buying it thinking its a deal they don't pay the depreciation. Not saying there aren't good used ones around, but it's like a box of chocolates.

So to me buying new is a piece of mind knowing you have somewhat of a warranty to back you up, thus no money from your pocket in the few years ahead. You get new technology and design and exactly what you want to buy. Buying used its a******shoot. You just pray it wasnt someone else's nightmare.

Having a conversation with our sales person ( been selling MH's his whole career) he said a large porportion of people with MH who can buy new will after about 4-5 years. The reason is engine & drivetrain warranty is expiring and they want newer technology.

If the cards play out as hoped, we'll buy another new after owning our current MH for 5 years. That'll get us our final MH before retirement. That will put our MH at the end of its warranty period, and probably some things needing attention that could be put off.

[Lantley]

My motivation to buy new was to get exactly the RV I wanted in the exact color I wanted with the exact features and options I wanted.
Getting exactly what I wanted was more important to me than getting a unit that was a bargain but wasn't quite what I wanted.
I do think If buying new you should plan on keeping rig a long time. If you like to trade in regularly buying new can be more costly.

[motorcanoe]

Hi, I'm in the exact same boat as you at the moment and leaning towards new.

Here is the way I see it. I can get brand new for 55k. I had been looking at 10 year old class C's for half that. If I keep the new one ten years it will be worth 25k in ten years. Cost me 2500 a year to own it.

If I buy a used one for 25k and keep it ten years. Its now 20 years old and worth about 5k It cost me 2k a year to own it. Plus whatever maintenance it needs. But for the sake of argument I'll say maintenance on a used it equal to taxes and such on a new. Plus I have the cash to buy new, but I always invest it because I can make more investing it, than the loan percentage so I make out a little on this end as well. I avg 10-12% a year in the market vs 3-5% loan rate.

all the two to three year old Class Cs I look at are the same price as a new one so why not just buy new? Plus a used one is 300 a month and new is 500. extra few hundred a month not going to hurt me. I've always bought new vehicles as soon as I could afford to do so and will never buy used again. Again, if you buy new vehicles right, and wait for killer deals from the manufacturer new ends up costing the same as one a few years old.

[Jbrowland]

Bumpyroad wrote:

Jbrowland wrote:
There are no financial benefits in buying new. None. Especially on a luxury item. Buy used and then use the hell out of it. 🙂

there are some financial benefits in buying new. a lower % rate if you have a loan. any insurance company will insure a new RV, not a used one if too old.
Now if you want to say that there is no overall saving in buying new, you may be right, but I don't want to buy somebodies hand me down.

bumpy

I hear you and understand your opinion on hand me downs. I certainly hope I don't come off as judging any one's choices. I am only answering in the context of the original question for the OP. Like I said before, the real benefit is in the amazing time we all have in our RV's and that is what counts.

There are certain items I would never buy used either. I like to shop at the Salvation Army and Good Will so hand me downs don't bother me much. I hate to see perfectly good stuff in the trash. My RV is a former rental and goes way beyond the concept of a hand me down for sure but it was also refurbished with too many new things to count inside and out. Most people think it is brand new as it also has new paint. They are shocked when I tell them it was a rental with 125k miles on it. Still, this option is not a good choice for everyone and that's cool. Especially full timers who want a bit more "home."

I have never personally encountered a problem with insuring old RV's and guessing from the many ancient and beat to death RV's I see on the roads here in SoCal, not many have issues. Also, if you buy used enough, you won't have to have a loan for long, if at all.

I think that one can say no overall financial savings is the same as no financial benefit at the end of the day. I respectfully stick to my original statement, as bold and unintentionally annoying as it may have read. There is no FINANCIAL benefit to buying new assuming a modecum of research on the purchase has been done.

[Bumpyroad]

Jbrowland wrote:
There are no financial benefits in buying new. None. Especially on a luxury item. Buy used and then use the hell out of it. 🙂

there are some financial benefits in buying new. a lower % rate if you have a loan. any insurance company will insure a new RV, not a used one if too old.
Now if you want to say that there is no overall saving in buying new, you may be right, but I don't want to buy somebodies hand me down.

bumpy

[Jbrowland]

The OP asked about financial benefits only. Generally, if a person even has to ask this question then my answer is to buy used. I also asked this question as well so I am not judging in any way.

There are no financial benefits in buying new. None. FACT. Numbers are not debatable or swayed by opinion. Especially on a luxury item. If you want to maximize your financial benefit then buy VERY used and then use the hell out of it 🙂 This is assuming a modicum of research into your used purchase prior to handing over the cash to make sure it isn't trashed of course.

That said, there may be many benefits that aren't financially related like lack of odors, time to search for a good deal, lack of warranty, and the list goes on and on and on. But the OP didn't ask about those benefits. They asked about financial benefits.

Still, this is a personal matter for each person to decide what is best. In my case, why would I want to owe money to someone for 15 years on something that I only use a few times a month at most? I paid in cash what many people put down on a new RV for a perfectly wonderful used RV with everything working on it and in amazing shape. I think most people confuse NEED and WANT. IMHO, need and want don't get closer together until you are talking about living in an RV full time or if you are buying an RV with a specific purpose in mind.

Of course, we all do slightly different things with our RV's so YMMV.

That said, good luck with whatever you do buy! You are going to love it and have a blast. That is the real benefit! 😉

[patperry2766]

Banks often wont loan money on a used vehicle for the same APR or length if loan: This is what my credit union is currently doing:
New
4.50 x 84 mths min $10K
6.75 x 85-120 mths $15K +
7.75 x 121-144 mths $25K +

Used:
2007-2013 models only
5.5 x 84 mths

[houstonstroker]

I'm surprised that nobody has mentioned that new or used you can write the interest off as a second home. As long as you itemize and the RV is the security for the loan, Maybe not a big write off but for me it makes writing that monthly check a little easier, or at least in my mind.

[cjoseph]

Just posted this to another thread and realized it pertains here too.

This comes with buying a new Ford F53 chassis:

5-years or 60,000 miles roadside Assistance**
This 24 hour, seven-days-a-week Hotline is a standard feature on all Ford Motorhome Chassis. By dialing 1-800- 444-3311, Ford Motorhome Chassis Customers also have access to:
• Flat Tire Changes (No Charge with Ford)
• Jump Start For A Dead Battery (No Charge with Ford) • Gasoline, If Out of Fuel (No Charge with Ford)
• Vehicle Lock-Out Service (No Charge with Ford)
• Towing To The Closest Dealer (No Charge with Ford)

** 5-years or 60,000 miles, whichever occurs first. See your Ford dealer for details.

I am not sure if transferable if you buy used during the mileage/age limits, but most likely is. Of course, you won't have this coverage as long as if you bought new.

You can get that for a used coach older than 5 years, but you have to pay.

[wbwood]

No one can answer this questionj but you. Many on here would rather try and get a baragain and get something used. To us, we prefer new. One reason we RV is to have our own stuff that others don't use or have not used (at least not for an extended period of time). Buyign used, we would of been buying somoeone elses personal hotel room. Yes we could change the mattress out and give it a good scrubbing, but there are still noramlly fabric material inside them (carbet, upholestry, curtains, valances, etc that can trap all the heebie jeebies...lol

Another reason we never bought used was because of smells. We never stepped into a used unit and it not reak.We also prefer to camp and not spend timing repairing thigns if we don't have to. The odds are in our favor (new units have issues also) normally. We don't care about saving a little money when it comes to this. But many do. We prefer not to spend money in other places.

[4X4Dodger]

I bought Used. A 2004 Gulfstream Innsbruck (a very well built trailer) I found this trailer in Chicago at a dealer. I drove there and did an inspection that lasted all day until well after dark. Nothing big wrong, every system worked and the dealer fixed all of the minor stuff we found.

The trailer was owned by only one couple who bought it new and even the original bill of sale was with the paperwork I found in the trailer including every manual of every system. (This was like finding Gold)

If the USA map on the door can be believed they hauled this trailer to every state east of the Mississippi and then some.

It was like new inside though of course "dated" in it's color scheme and fabrics. I beleive they had put a new refer and stove/oven and Microwave in it at some point soon before selling it. They were all virtually unused. It had a brand new awning.

I have hauled it about 6000 miles since I have had it and it has operated perfectly.

I paid $8300 for the 31 footer and couldnt be happier.

So the moral of this story is you can get great deals out there on really good trailers if you are willing to look long and hard and travel out of your area, do an absolutely thorough inspection and bargain. In this case any small problems that may have existed early on were taken care of already by a couple that maintained their trailer very well.

One additional positive is that with it being used I am not hesitant about making some changes or redoing flooring as an example.

With the money I saved by buying a used trailer I instead put into a brand new Dodge Ram 4x4 2500 crew cab truck to pull it with.

[Skid_Row_Joe]

No, none. I buy used only. The depreciation will financially slaughter you buying new.

My coach was 9-months old with 5K miles on it when I bought it used. I saved 25% under what the new buyer paid. I saved tens of thousands of dollars buying used.

[Desert_Captain]

DSDP Don wrote:
"Desert Captain"......What if I said.....You bought used because of the poor life choices you made and are now stuck buying used second hand stuff. You'd be offended...right? It works both ways. I can afford to buy new and will continue to do so, but it doesn't make either one of us smarter and I don't criticize or give little digs about your choices to buy used as many used buyers routinely do.

Most buy used, because that's what they can afford, yet SOME spend their time telling everyone how smart they are for doing so rather than just say.....I bought what I could afford!!!

Some say they could buy new, but they decided to buy five years older and get a bigger more luxurious coach. I could have bought a used Prevost, but I wanted a new coach with current electronics and equipment, along with a five year engine warranty (more in my comfort zone).

If buying used works for you great, but it gets old being criticized by used buyers while the new buyers bite their tongue. Adding digs at the end of statements, like "money in my pocket", gets old.

DSDP Don,

Your post (that I responded to), contained false statements and carried more than a little attitude. You seem to be seeking things to be offended by and ignoring the rest. This thread is a discussion of the potential advantages of buying new vs used. These discussions typically consist of opinions, everybody has one. A smattering of facts usually creeps in as well. I guess you don't think that there are (as I pointed out), pro's and cons to either scenario. If you want to believe that it is OK with me.

I also stated to buy what works best for you. So what here offends you? The OP is seeking information to include dissenting opinions and then when they are given you cry foul? :h

As I have noted before in other discussions you have a big, beautiful motorhome with one of the biggest toad's on the road. After buying it you probably had a lot more money in your pocket than I did to begin with but who cares?

I was an eyelash away from buying the exact same coach that I have, new (yes, like you I can afford to buy new). By an amazing stroke of luck and a great deal of internet searching I discovered my dream coach with 6,205 miles had popped up right here in Tucson. Buying it did not make me smarter but letting it get away would have been a poor decision. You bought and got exactly what you wanted, guess what? So did I.

Lastly, I've said it before and will say it again....

As always.... Opinions and YMMV.

:C