Judy and I are in the process of giving up our 3 years of fulltiming for our new found Shangri-La. It is amazing how much value you loose on your RV each year while on the road. Everyone needs to count this into their monthly and yearly expences. Once this figure is caculated in the "life on the road" it is not as in-expensive as one thinks. I'm not talking a big diesel pusher either, I'm sure those could depreciate $3000 a month or more for the first couple years. Just putting out some food for thought. Bob
Mallo said
08:33 PM Sep 16, 2009
Because I'm not a corporation I don't have to count depreciation.
It has been said several times these are not investments. Loosing money selling one is something I'd expect but I do count my monthly payments as the cost of full timing.
Mallo
dream reachers said
09:18 PM Sep 16, 2009
It is a given that cars, trucks, boats, motorcyles, RVs, etc. depreciate the moment they are taken off a dealers lot and they depeciate every year. People need to be aware of that before they decide to purchase any of them. It used to be assumed that houses appreciated over the years but that can no longer be assumed as many people have found out the hard way. We purchased our RV used and payed about half of the cost of a new trailer for one 2 years old. We also purchased a used truck with fairly low mileage for much less than a new one. We have cut our depreciation factor but know they will continue to depreciate. We went into this venture with our eyes wide open and have no regrets as we love the lifestyle and hope to continue for many years to come. It is good that you reminded people of the depreciation factor which they need to consider. We will not figure this into our budget however like we did not figure our house appreciation or depreciation when we were in our sticks and bricks. It might be wise for some people to figure in a upgrade or replacement if they planned on trading down the road. There are many things to consider before deciding to go fulltime, it is not for everyone. People should also take their time and really investigate before purchasing their first RV. Many people make poor choices by listening to salesmen or being dazzeled by that shiney model on the dealers lot and will end up trading or selling in a short time.
tumwatergal said
10:20 PM Sep 16, 2009
Depreciation is definitely a factor when choosing any type of RV (or car for that matter). I wouldn't let it stop me, however, from enjoying this life. We bought a new DP in 2007 and I'm sure we are upside down in our mortgage for a couple more years. We have a 2.74% interest so we are paying a big chunk to the principle each year. Our plan (God willing) is to enjoy our MH and this lifestyle for at least 10 to 15 years. By then the MH will be paid off. Well, that's our plan...and we're sticking to it.
You want to talk about Depreciation...OK I found out that our health depreciates over the years but that never stopped me from living. Likewise an RV depreciating did not keep me from buying one and paying cash for it. How will I ever know that it depreciates if I don't sell it. I don't plan on selling it and it will last longer than I will... Life is too short to talk about such things. If we always think negative we will always be less than we could be...think possitve and you will always be more than you could ever imagined. Follow your dreams...your memories are all you have left in the end.
travelinbob said
10:48 AM Sep 17, 2009
Speedhitch and others,
I wasn't going to post a reply but I figured what the heck.
Yes, our health does depreciate and every fulltimer is planning on the fulltime lifestyle forever. In REALITY, that does not happen.
At one point in time every RV'er has to give it up or a fulltimer wants to have a permanent home under their feet again. All personal choices.
Joe and Sherri, your truck and rig is an '08 and regardless if you paid cash or not, if your personal choice changes in the next couple years your assests will depreciate drasticly.
Sure, Judy and I have paid cash for everything and regardless, you are still loosing at a minimum of $1000 a month if you have a newer rig unless you have purchased used like one reader posted.
Dreamreachers,
Sure cars, trucks, motorcycles, boats depreciate but most of those are not the $$$ that some RV's cost.
Thanks for listening, Bob
azrving said
02:50 PM Sep 19, 2009
Speedhitch wrote:
You want to talk about Depreciation...OK I found out that our health depreciates over the years but that never stopped me from living. Likewise an RV depreciating did not keep me from buying one and paying cash for it. How will I ever know that it depreciates if I don't sell it. I don't plan on selling it and it will last longer than I will... Life is too short to talk about such things. If we always think negative we will always be less than we could be...think possitve and you will always be more than you could ever imagined. Follow your dreams...your memories are all you have left in the end.
Good reply! It seems these days everything is depreciating! Our S&B we purchased in 2006 has dropped $82,000 in value. I would have been better off to buy 5th wheel or motorhome. Which is what I wanted to do but my wife insisted that we needed another house and there have been a lot of "you should have listened to me" in the past 3 years.
Judy said
03:48 PM Sep 19, 2009
I remember meeting one couple last winter in Florida that traded in they're RV fiver every 2 yrs. Nice work if you can do that. Most of us cannot though. southwestjudy
travelwithwhippets said
07:23 AM Mar 29, 2010
When we were investigating this lifestyle, I read some sage advice:
"Make your first RV be your last RV."
Not sure how practical that is, but we found a MH we absolutely love, bought it used, and still love it. We plan to take VERY good care of it and hope that it lasts as long as it possibly can. It is NOT a DP; couldn't afford one of those. We went with the best quality gasser we could find. I guess my point is to start out with one you can live with a long time. After several years, we couldn't be happier with ours. (2003 Newmar Mountain Aire 36' gasser)
DagoRanch said
08:44 PM Mar 29, 2010
travelinbob wrote:Sure, Judy and I have paid cash for everything and regardless, you are still loosing at a minimum of $1000 a month if you have a newer rig unless you have purchased used like one reader posted.
Dreamreachers, Sure cars, trucks, motorcycles, boats depreciate but most of those are not the $$$ that some RV's cost.
Well Bob the thing is I think a lot of people have figured out that depreciable items regardless of the cost lose half their value within the first 4-5 years. Sure it's a rule of thumb and doesn't always exactly fit with everything, but the IRS certainly applies that thinking.
Like it or not that's what buyers are looking for! ESPECIALLY in these times.
And let's be honest about the "loosing" $1000.00 a month. It's all on paper, it's not tangible until you have to sell, and then again that good ole rule of thumb applies... 50% in the first 4-5 years. That's why they are called depreciable items. So if you go in knowing that, then what have you actually lost?
Look, you do make a good point about it being a factor as well it should be, I just think lot's of people choose to not look at it that way, the intangible benefits outweigh the monetary cost for them.
PIEERE said
08:59 PM Mar 29, 2010
Mine is to old, Just like me to depreciate any more. LOL! I have an 88 model w/60k to go along with this 51 model, one trillion miles. I will use and drive it until either it dies or I do. I work camp and love this lifestyle, although I pull other peoples weeds and mow their lawns. I have met more wonderful, caring and considerate Rvers than in any other professions. I LIVE ONE DAY AT A TIME, and LET GO AND LET GOD TAKE THE LEAD! I have been, seen, done and maybe will do more than I have ever dreamed possible in the last 16 years than the previous 41. I'm not rich financially, but richer than "Most" because of the lack of STRESS of traditional lifestyles.
DON"T LET ANY ONE OR ANYTHING RUIN YOUR DREAMS! PIEERE
Jim01 said
06:41 AM Mar 30, 2010
Linda and I are convinced that buying a high quality "used" RV is the way to go. When we bougt our 92 Beaver in 2005, we payed much less than we would have for a medium quality new unit.
Yeah, we gripe about the high maintenance cost sometimes, but it's less than the depreciation we would be loosing, and less than those monthly payments that we would have if we had bought a new RV of the same quality.
We are very comfortable in our 18 year old MH and have no plans to replace it with a newer unit.
As far as making your first RV your last RV, I don't feel that many will do that. In the first place, most people have no idea what kind of RV they'll want or need when they first start out, (I know we didn't), and then there are all the new bells and whistles on the new RVs to tempt you to buy the latest and greatest model.
Just our opinion,
Jim
TheHarveys said
06:56 AM Mar 30, 2010
We are one of those couples who, (to those who monitor our driveway), never seem satisfied with our RV purchase. We have owned 6 trailers in the past 8 years. Of those six, five of them were brand new and two of them we actually custom ordered.
However, we could not have purchased our "keeper" RV the first time around as we did not have the money, nor the tow vehicle, nor the inclination to buy it.
We started small, (Aliner popup), while we still had a couple kids camping with us and moved up the RV food chain buying a travel trailer and then moving on to fifth wheels.
We have always tried to buy as inexpensively as possible, knowing that RVs depreciate just like cars and trucks.
Yes, we have lost several thousand dollars in depreciation over the years and the five trade-ups, but, considering the fun times we have had, I would not trade the experiences to get the money back.
We ordered our "final" fiver a few months ago and we are picking it up today. It is a beautiful Carriage Carri-Lite 36MAX1. THIS is the RV we finally plan to live in fulltime and travel the country with...now if I can only convince my wife to let me buy that 2005 Freightliner HDT to pull it with. Oh well, all in good time.
GENECOP said
06:59 AM Mar 30, 2010
In these economic times getting 30 to 40% off the MSRP makes depreciation less of a factor when the economy stabilizes again. G
Colorado_Kid said
04:31 PM Mar 31, 2010
I don't ever remember "loosing" money although I remember "losing" money.
Jim01 said
05:36 PM Mar 31, 2010
We don't' penalize for spelling or grammar errors on this forum. That's one of the reasons that this is the friendliest forum on the Internet.
Take care,
Jim
DagoRanch said
05:55 PM Mar 31, 2010
Colorado_Kid wrote:
I don't ever remember "loosing" money although I remember "losing" money.
It is amazing how much value you loose on your RV each year while on the road.
Everyone needs to count this into their monthly and yearly expences. Once this figure is caculated in the "life on the road" it is not as in-expensive as one thinks.
I'm not talking a big diesel pusher either, I'm sure those could depreciate $3000 a month or more for the first couple years.
Just putting out some food for thought.
Bob
Because I'm not a corporation I don't have to count depreciation.
It has been said several times these are not investments. Loosing money selling one is something I'd expect but I do count my monthly payments as the cost of full timing.
Mallo
Margie M.
blog: www.bruceandmargiesfulltimejourney.blogspot.com
www.myhealthylivingthruweightcontrol.blogspot.com
Good reply! It seems these days everything is depreciating! Our S&B we purchased in 2006 has dropped $82,000
in value. I would have been better off to buy 5th wheel or motorhome. Which is what I wanted to do but my wife insisted that we needed another house and there have been a lot of "you should have listened to me" in the past 3 years.
southwestjudy
"Make your first RV be your last RV."
Not sure how practical that is, but we found a MH we absolutely love, bought it used, and still love it. We plan to take VERY good care of it and hope that it lasts as long as it possibly can. It is NOT a DP; couldn't afford one of those. We went with the best quality gasser we could find. I guess my point is to start out with one you can live with a long time. After several years, we couldn't be happier with ours.
(2003 Newmar Mountain Aire 36' gasser)
Yeah, we gripe about the high maintenance cost sometimes, but it's less than the depreciation we would be loosing, and less than those monthly payments that we would have if we had bought a new RV of the same quality.
We are very comfortable in our 18 year old MH and have no plans to replace it with a newer unit.
As far as making your first RV your last RV, I don't feel that many will do that. In the first place, most people have no idea what kind of RV they'll want or need when they first start out, (I know we didn't), and then there are all the new bells and whistles on the new RVs to tempt you to buy the latest and greatest model.
Just our opinion,
Jim
Take care,
Jim
Doh! I even did it in my reply! LOL