Class A RV makes no $$ sense

[offroad]

So am doing the math after watching some videos. A relatively new class A RV will be around $50,000.

If you buy it outright you start loosing 6% interest yearly. So let's says $4000 yearly lost to depreciation. ($350 monthly)

I like to round numbers to make the math easy. maintenance and insurance of $100 per month if lucky. Plus interest lost on that $50000 in the bank which would make $2500 a year ($200 lost monthly). Plus an RV rental spot of $500 a month if you are lucky.

$1100 a month cost. Which is around $13000 a year. And I would put aside $2000 more per year to plan it's replacement.

So a CLASS A RV is costing $15000 in real money cost to your lifestyle. You still need to pay for food-health-clothing-entertainment-gasoline-registration-toad car --- costs on top of that.

 

[offroad]

You can pull off month to month living in apartments for two thirds this cost. If you shop around to low cost towns with good rental rates.

Or you could create your own Van RV lifestyle and save tens of thousands a year.

 

[SoulRaven]

Anybody that buys any sort of vehicle before it's been fully depreciated deserves to lose the depreciation and interest costs.

A cheap older MH or van can be just as livable, and 10 years later sold for the same price paid for it or more.

 

[GotSmart]

Depreciation is closer to 20% just driving off the lot. More if it is factory new.

 

[offroad]

But old things are old and risky with the systems and components at ten years old. In particular if the original design used cheap parts. --- maybe strategy is to look at the top models that are older.

 

[GotSmart]

Given $50K I will build a rv that will hold it's value.

 

[offroad]

Please inform which bank is giving a 6% return on cash deposit.

Thanks,

Guy

I am getting at least that on my 401k by being aggressive with my trend investing tools. The stock market is doing that well with index funds. And the banks are secretly using your money every year getting that much.

 

[offroad]

Given $50K I will build a rv that will hold it's value.

Am thinking that. But the value as judged by you personally is not the same as that judged by a bank loan officer. if the parts all keep their value, sure that will work. It's that pesky labor installation cost that disappears.

 

[ZoNiE]

You are buying a lifestyle with a Class A, and $50K ain't gonna buy you nearly new unless it is a lower line like a Winnebago Gasser, which is a long weekend type of coach at best.

You start to see real value in an 8-10 year old Diesel Pusher that was in the $200K-ish price range when new. Most of the depreciation has happened, it usually has brand new tires, and 80-100K miles is nothing on a Cummins ISX Motor. You'd be looking at $70K if you shop in a good market, like Arizona, right now, where the Canadians bought nothing at all due to exchange rates.

Since it is a second home, you can finance for 10-15 years. Or if you can afford it, pay cash.

Plan on tires every 5-7 years. Bus tires are spendy. Oil Changes are too. Plan accordingly.

Other than that, a full four slide (or full wall on the Monaco's) make for a really nice space that you can take practically anywhere.

 

[Almost There]

All the depreciation and interest aside, you should see what new Class A's are going for in Ontario.

After looking at the websites for 2 local dealers who won't quote their prices on the web site, I finally found a site that is an advertising conglomerate for a group of dealers. The cheapest 2015 Class A to be found was $88,900 and that was a 26' Winnebago bottom of the line. Most were ranging between 150 to 200 grand for anything in the 32 to 36' range.

2014 Class Bs' brand new are starting in the high 80's.

And I wonder why I bought a 2002 cargo van and am doing my own build.....

 

[GotSmart]

Am thinking that. But the value as judged by you personally is not the same as that judged by a bank loan officer. if the parts all keep their value, sure that will work. It's that pesky labor installation cost that disappears.

I do my own labor.  A nice diesel sprinter will make a great platform, and the components will run about $7 to 10K.  That depends on how crazy I want to get.  With the cost of factory units today, anything I build using quality components will retain it's value.  

If I were to build it for someone else, that is a different story.

 

[sushidog]

A used class C is a far better value than an A.

If you don't have much money but need an RV quickly, here's a couple examples:
http://www.rvtrader.com/listing/1989-Fleetwood-TIOGA-arrow-24-114762052
http://www.rvtrader.com/listing/1985-Coachmen-CLASS-C-114467196

Got a little more scratch (still under $20k) and you can move up a tad:
http://www.rvtrader.com/listing/2001-Winnebago-Minnie-331C-114599756
http://www.rvtrader.com/listing/2004-Coachmen-Roadmaster-285-QB-114404908

They may not be everyone's cup of tea but you sure get a lot of bang for the buck.

Chip

 

[Optimistic Paranoid]

It may not make any $$ sense, but let's face it.  The average American has lived their whole life in a house or apartment, and has come to expect certain things in their living arrangements:  A flush toilet, a shower or bathtub, a separate kitchen, etc. 

Live in a van?  Crap in a bucket?  Clean themselves with baby wipes?  Are you kidding?

Thus, an entire industry has grown up to cater to their expectations.

Regards
John

 

[Reno]

So am doing the math after watching some videos. A relatively new class A RV will be around $50,000.  

If you buy it outright you start loosing 6% interest yearly. So let's says $4000 yearly lost to depreciation. ($350 monthly)

I like to round numbers to make the math easy.  maintenance and insurance of $100 per month if lucky.  Plus interest lost on that $50000 in the bank which would make $2500 a year ($200 lost monthly). Plus an RV rental spot of $500 a month if you are lucky.

$1100 a month cost. Which is around $13000 a year.  And I would put aside $2000 more per year to plan it's replacement.

So a CLASS A RV is costing $15000 in real money cost to your lifestyle. You still need to pay for food-health-clothing-entertainment-gasoline-registration-toad car --- costs on top of that.

After almost 3 years and 1700 posts you just don't seem to get the spirit of this forum. The people of this forum actually like the lifestyle they've chosen to live, and are, indeed, actually living it.  And, I find I enjoy the company and fellowship of vandwellers, and have made many new friends among them.

As I recall, you and your girlfriend were warmly welcomed at Mr Loo Reed's First Annual Florida gtg this year (where you had Bob Wells autograph your copy of his book), yet had little good to say about the affair or the people you met there.
http://http://https://vanlivingforum.com/Thread-weekend-warrior-lifestyle

To each his own, yet most folks wouldn't consider joining a houseboat forum to "educate" the boat owners to the folly of their ways or to look down upon those who live that life.


 

 

[akrvbob]

If you look at the worst case scenario, it's no surprise it comes out with a dark picture. Fortunately, you only needt o make a few changes to make the picture come out pretty rosy.

However, it's still a very good thing to look at the worst case to see that it doesn't work so people can make the adjustments to make it work.
Bob

 

[Bandit2]

I would take a closer look at the 89 Tioga's upper right front corner if I was interested in it , there looks like there might be some water damage ?
But all those posted are very reasonable priced , compared to the Northeast .

 

[highdesertranger]

did anybody also notice on that tioga, they only had 2 of those phony wheel covers and they were both on the drivers side? they were also both front wheel covers and they had one on the rear. highdesertranger

 

[GotSmart]

There was also a lot of black silicone around the edges. The price was extremely low.

 

[offroad]

Water leaks in the tiaga? Is that suspected?

 

[VJG1977]

On a 570 mile trip from St. Joseph Mo. to Clarksville, Tn. I counted the campers that I saw.  They broke down like this.
54 Class A  
22 Class C
15 Class B
40 Travel Trailers, Bumper pull
31 5th Wheel
2   Pickup Campers

I agree that a new Class A makes little if any financial sense but I'm thinking hard about a used one.  The hard part is figuring out how old to buy.  At what point would the money spent on maintenance have been better spent on buying a newer model?

Vic