Typical RV annual budget

[Veik]

I am truing to calculate rv ownership cost
So far I have...

Storage -$100/mo
Insurance -50/mo
Loan - say 350/mo for 15 years
Oil change - twice a year - $150 total, if I do it myself
Roof maitenance - twice a year for fiberglass??
Tires- Every five years - $1200?

Plus camping fees.

What am I missing?

[Veebyes]

Whatever your estimate is, double it. The misc. catagory covers many things that add up in a big way.

Without splurging too much on full featured CGs, without going to restaurants every week, without driving hundreds of miles on average but without skimping on anything we figure $100-$125 per day for running costs.

Then there are the fixed annual costs like storage, insurance, at least $3000 for maintenance. You don't want to hear about depreciation.

Only use it for a few weeekends a year & the per day/use costs really escallate.

[tatest]

If you are trying to compare the cost of owning a RV against the cost of vacation alternatives, you certainly need to include the cost of money (financing, depreciation) in the comparison. Those interest payments could be saved for the vacation, and the depreciation will bite you when you try to sell it 8-12 years down the road and you still owe more than the price at which you can sell it.

I started at $58,000, did not have to finance, but the first year's depreciation was at least $8,000 and that $58,000 would have earned another $4800 had I left the money in my stock portfolio. That $12,000 to $13,000 could have bought a lot of vacation that year, considering that the two months of traveling in the RV also cost about $3000 for gas and about $1800 in RV park and campground fees.

The more you use the RV, the better the cost of ownership spreads out as "cost per day" for vacation. We were not doing too badly at first, 60-90 days a year were working out to about $200 per day of vacation. But when my wife got sick and the RV spent more time sitting in storage, the 3-4 weeks a year we could use it came to more like $500 a night. The 2-3 weeks I am using it now work out to a bit less, about $300 a night, because I am going to campgrounds only 18-30 miles away, and at ten years old the annual depreciation is much less.

[Veik]

wbwood wrote:

Muddydogs wrote:

mich800 wrote:

Muddydogs wrote:
Personally I think if you have to go through all this you probably shouldn't purchase an RV. Can you afford the monthly loan payment, insurance and storage fees? If so then everything else will work itself out. In the end are you putting a price on family fun and enjoying life because tomorrow you might not be around.

You don't need to purchase everything at once, a sewer hose, water hose and a few wood blocks will get you camping then other stuff can be acquired over time. Are you storing the unit under cover or purchasing a new unit? If so then you don't need to pay for a roof check twice a year for the first couple years and you can do the checking if you are able to get on the roof anyway.

That is crazy. Are you saying only the irresponsible use budgets? I was taught the opposite.

No, not sure how you pulled that out? Do you budget for home repairs? What happens if your washer dies tomorrow?

What I am saying is why budget for stuff 5 years down the road or more? If you can afford the initial costs and have enough money in your pocket to put gas in the truck to go camping without eating noodles all week then you are probably ok. A couple posts mentioned food costs, well you have to eat either way so why would that even be a consideration.

Not a good example about the washer. Your washer will not need routine things done like an RV will. And even for the costs of just tires for an RV in about 5 years or so, you can replace your washer/dryer set with a rela nice washer/dryer set. And yes, those that budget, generally set aside a budget or means or replacing things as they happen. Much different for replacing appliances that you almost is nearly a necessity (unless you have other means of washing clothes) and spending $20,000-100,000 on something that is not a necessity. Especially if you are spending every extra penny on the RV, storage and insurance. It leaves you with no operating costs. Now w ecan sit here and argue whether or not one should even consider doing it if it will stretch them out. But that's their personal choice. Many don't believe in financing. Many don't believe in paying to store it elsewhere. And many believe in budgeting and knowing where just about every cent is going. I've never heard a "financial guru" ever tell anyone not to do a budget...

washer these days last about 5 years.
I replaced a 15+ year washer just to have a new one die in 4 years.

but we are getting off topic here :)))

[beemerphile1]

Veik wrote:

beemerphile1 wrote:
I'm curious, you are considering financing an RV at $350 per month for 15 years = $63,000 Since you don't have land to park it there will be storage on top of insurance for another $27,000

My question is, do you also finance (borrow) the money for your current non-RVing vacations?

I couldn't sleep at night if I had to borrow that money and pay those amounts in order to own a depreciating asset.

Maybe a less expensive RV would be in order. Even renting an RV might be an option.

Hopefully you realize that no one can tell you what you will spend on RVing. I had no idea what the cost was when we started and I had been a tent camper for many years. To be honest, I still don't know what the cost is because I don't track the expenses.

yup, vacations go on credit card, credit card paid in full every month, and points earned get rolled into future vacation.

Free stays, free flights, etc.

So you do not finance your vacations currently if you pay the credit card in full monthly. That is also a consideration then as to if you want to take on the debt of an RV.

If you have a less than satisfactory vacation, it is over with and paid for.

If you or anyone finances an RV and then discovers the lifestyle isn't for them/you, the debt is still there for many years.

Many RVs sit unused because people don't want them but can't get rid of them because they are upside down with financing. They have little choice but to continue slogging along making the payments.

This is a true story, a member of my Good Sam chapter has a Monaco Diplomat diesel pusher class A that hasn't left his drive in a couple years but he has a monthly payment in excess of $800. He can't sell it because he owes around $20,000 more than it is worth.

[Veik]

beemerphile1 wrote:
I'm curious, you are considering financing an RV at $350 per month for 15 years = $63,000 Since you don't have land to park it there will be storage on top of insurance for another $27,000

My question is, do you also finance (borrow) the money for your current non-RVing vacations?

I couldn't sleep at night if I had to borrow that money and pay those amounts in order to own a depreciating asset.

Maybe a less expensive RV would be in order. Even renting an RV might be an option.

Hopefully you realize that no one can tell you what you will spend on RVing. I had no idea what the cost was when we started and I had been a tent camper for many years. To be honest, I still don't know what the cost is because I don't track the expenses.

yup, vacations go on credit card, credit card paid in full every month, and points earned get rolled into future vacation.

Free stays, free flights, etc.

[beemerphile1]

I'm curious, you are considering financing an RV at $350 per month for 15 years = $63,000 Since you don't have land to park it there will be storage on top of insurance for another $27,000

My question is, do you also finance (borrow) the money for your current non-RVing vacations?

I couldn't sleep at night if I had to borrow that money and pay those amounts in order to own a depreciating asset.

Maybe a less expensive RV would be in order. Even renting an RV might be an option.

Hopefully you realize that no one can tell you what you will spend on RVing. I had no idea what the cost was when we started and I had been a tent camper for many years. To be honest, I still don't know what the cost is because I don't track the expenses.

[mich800]

Muddydogs wrote:

mich800 wrote:

Muddydogs wrote:
Personally I think if you have to go through all this you probably shouldn't purchase an RV. Can you afford the monthly loan payment, insurance and storage fees? If so then everything else will work itself out. In the end are you putting a price on family fun and enjoying life because tomorrow you might not be around.

You don't need to purchase everything at once, a sewer hose, water hose and a few wood blocks will get you camping then other stuff can be acquired over time. Are you storing the unit under cover or purchasing a new unit? If so then you don't need to pay for a roof check twice a year for the first couple years and you can do the checking if you are able to get on the roof anyway.

That is crazy. Are you saying only the irresponsible use budgets? I was taught the opposite.

No, not sure how you pulled that out? Do you budget for home repairs? What happens if your washer dies tomorrow?

What I am saying is why budget for stuff 5 years down the road or more? If you can afford the initial costs and have enough money in your pocket to put gas in the truck to go camping without eating noodles all week then you are probably ok. A couple posts mentioned food costs, well you have to eat either way so why would that even be a consideration.

From your first sentence. I was just going by their subject line and the general question of typical costs. But I do agree with your last paragraph above about 5 years down the road but that was not the spirit of the question.

[wbwood]

Muddydogs wrote:

mich800 wrote:

Muddydogs wrote:
Personally I think if you have to go through all this you probably shouldn't purchase an RV. Can you afford the monthly loan payment, insurance and storage fees? If so then everything else will work itself out. In the end are you putting a price on family fun and enjoying life because tomorrow you might not be around.

You don't need to purchase everything at once, a sewer hose, water hose and a few wood blocks will get you camping then other stuff can be acquired over time. Are you storing the unit under cover or purchasing a new unit? If so then you don't need to pay for a roof check twice a year for the first couple years and you can do the checking if you are able to get on the roof anyway.

That is crazy. Are you saying only the irresponsible use budgets? I was taught the opposite.

No, not sure how you pulled that out? Do you budget for home repairs? What happens if your washer dies tomorrow?

What I am saying is why budget for stuff 5 years down the road or more? If you can afford the initial costs and have enough money in your pocket to put gas in the truck to go camping without eating noodles all week then you are probably ok. A couple posts mentioned food costs, well you have to eat either way so why would that even be a consideration.

Not a good example about the washer. Your washer will not need routine things done like an RV will. And even for the costs of just tires for an RV in about 5 years or so, you can replace your washer/dryer set with a rela nice washer/dryer set. And yes, those that budget, generally set aside a budget or means or replacing things as they happen. Much different for replacing appliances that you almost is nearly a necessity (unless you have other means of washing clothes) and spending $20,000-100,000 on something that is not a necessity. Especially if you are spending every extra penny on the RV, storage and insurance. It leaves you with no operating costs. Now w ecan sit here and argue whether or not one should even consider doing it if it will stretch them out. But that's their personal choice. Many don't believe in financing. Many don't believe in paying to store it elsewhere. And many believe in budgeting and knowing where just about every cent is going. I've never heard a "financial guru" ever tell anyone not to do a budget...

[wbwood]

jplante4 wrote:
Rather than budget, I prioritize. I have 3 lists; stuff that must be done, stuff that should be done and stuff that would be nice to do. If I ever have money left over after the "stuff that must be done" list is done, I'll let you know how this scheme works.

LOL...Using a budget, I just assume it's stuff in the categories of what must and what should be done. Didn't realize there was an option of what would be nice to be done...oh yeah I did, it's what the penny jar is for.

[Muddydogs]

mich800 wrote:

Muddydogs wrote:
Personally I think if you have to go through all this you probably shouldn't purchase an RV. Can you afford the monthly loan payment, insurance and storage fees? If so then everything else will work itself out. In the end are you putting a price on family fun and enjoying life because tomorrow you might not be around.

You don't need to purchase everything at once, a sewer hose, water hose and a few wood blocks will get you camping then other stuff can be acquired over time. Are you storing the unit under cover or purchasing a new unit? If so then you don't need to pay for a roof check twice a year for the first couple years and you can do the checking if you are able to get on the roof anyway.

That is crazy. Are you saying only the irresponsible use budgets? I was taught the opposite.

No, not sure how you pulled that out? Do you budget for home repairs? What happens if your washer dies tomorrow?

What I am saying is why budget for stuff 5 years down the road or more? If you can afford the initial costs and have enough money in your pocket to put gas in the truck to go camping without eating noodles all week then you are probably ok. A couple posts mentioned food costs, well you have to eat either way so why would that even be a consideration.

[jplante4]

Rather than budget, I prioritize. I have 3 lists; stuff that must be done, stuff that should be done and stuff that would be nice to do. If I ever have money left over after the "stuff that must be done" list is done, I'll let you know how this scheme works.

[Muddydogs]

Veik wrote:

wbwood wrote:

Muddydogs wrote:
Personally I think if you have to go through all this you probably shouldn't purchase an RV. Can you afford the monthly loan payment, insurance and storage fees? If so then everything else will work itself out. In the end are you putting a price on family fun and enjoying life because tomorrow you might not be around.

You don't need to purchase everything at once, a sewer hose, water hose and a few wood blocks will get you camping then other stuff can be acquired over time. Are you storing the unit under cover or purchasing a new unit? If so then you don't need to pay for a roof check twice a year for the first couple years and you can do the checking if you are able to get on the roof anyway.

I think you have to look at the whole picture. If you can just afford the payment, insurance and storage and that's it, then you will have a rude awakening when you do need to buy tires as an example. Time on that would depend on the tires of the unit they bought. If a new unit, then they have 5 yrs or so. If a used unit, then maybe not that long or even half that long. Would suck to be making financing payment, inusrance payment and storage payment on a hunk of metal that you can't afford to move.

Exactly.

I am trying to compare a RV investment to an investment of 2-3 long vacations we currently take per year.

Well in this case your initial investment for an RV is what $20,000 to $100,000. If all you want is a few longer vacations a year then an RV probably isn't the way to go. For the cost of camp grounds and extra fuel used towing an RV you can just about stay in a motel, insurance and storage fees for a year sure would pay for a lot of restaurant dinning while traveling. If you want to get away more and like to dry camp or use cheaper camp sites then the costs per night drop way down.

Another question is will you still take a vacation without the camper?

[wbwood]

Veik wrote:

wbwood wrote:

Muddydogs wrote:
Personally I think if you have to go through all this you probably shouldn't purchase an RV. Can you afford the monthly loan payment, insurance and storage fees? If so then everything else will work itself out. In the end are you putting a price on family fun and enjoying life because tomorrow you might not be around.

You don't need to purchase everything at once, a sewer hose, water hose and a few wood blocks will get you camping then other stuff can be acquired over time. Are you storing the unit under cover or purchasing a new unit? If so then you don't need to pay for a roof check twice a year for the first couple years and you can do the checking if you are able to get on the roof anyway.

I think you have to look at the whole picture. If you can just afford the payment, insurance and storage and that's it, then you will have a rude awakening when you do need to buy tires as an example. Time on that would depend on the tires of the unit they bought. If a new unit, then they have 5 yrs or so. If a used unit, then maybe not that long or even half that long. Would suck to be making financing payment, inusrance payment and storage payment on a hunk of metal that you can't afford to move.

Exactly.

I am trying to compare a RV investment to an investment of 2-3 long vacations we currently take per year.

If it came down dollar for dollar, then you need to take into consideration that teh RV will elave with somewhat of value at teh end (appraisal of the RV). If you do a vacation where you drive a car you already have, fly, take a crusie or whatever, you will not have anything left to show except souvenirs and photos.

But then again it's hard to compare the two. You may purchase an RV and only use it one year. You may not be able to use it after that. It will depreciate.At least if you traveled that one year, you will nto be out the next year unless you prepurchase it. While many feel they can RV for cheaper than doing it via the hotel, it's normally not the case. Unless you are willing to give you your hotel bed for a sleeping bag and a tent or pop up tent. The type of RV and value of it will all come into play. A lot different than getting a $5000 used pop up to pull behind your minivan than to spend $150,000 on a Class A.

Want it to be cheaper? Gotta do it cheaper.

[mowermech]

Budget?
If/when it is needed, spend whatever it takes to get it done.
Don't overthink it.
Go camping.