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Old 10-22-2018, 11:16 PM   #1
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Depreciation

Hi everyone, quick question. I recall a thread giving some rough rates for depreciation on our class As The search as usual failed. Does anyone recall the percentages quoted? First year 30%? Annual after 6%? Not shopping yet but considering full timing and will be shopping if we decide to go full time.
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Old 10-23-2018, 12:06 AM   #2
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It is hard to say since no one pays full retail, and most such observations fail to account for various new coach discounts.
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Old 10-23-2018, 12:07 AM   #3
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I'm not sure exactly what thread you have mentioned seeing on this forum but I did see this entry from this guy's blog not too long ago that I bookmarked as I thought it may serve as a good guide. I'm not sure how accurate it is but at least it can serve as a general reference. It's from:

RV Depreciation: Everything you could possibly want to know


Depreciation on a Class A Motorhome

The following is the average depreciation schedule I determined for Class A motorhomes. I determined these numbers after reviewing purchases made by 51 Class A motorhome buyers to determine how the RV depreciated over time.
  • One year old – This number is extremely tough to determine. The trouble is that many buyers traded in their RVs to a dealership at the end of one year to get something different, and some dealerships tell you they are paying you a high amount for your trade and then crank up the price on the new motorhome you’re buying from them. So honestly, this number is nearly impossible to accurately calculate, but I’d guess it’s around 21%.
  • Two years old – 22%. There isn’t much of a difference between a one year old RV and a two year old RV. I found the depreciation to barely budge. They still smell new at this point! Also, manufacturers typically call an RV a 2019 model when it’s sold in 2018, for example, so it’s tough to know how much use an RV actually had when it’s listed as being two years old. The gross numbers don’t tell us the complete picture here.
  • Three years old – 26.7% depreciation (meaning 26.7% of the price you paid new is now gone)
  • Four years old – 30.27% depreciation
  • Five years old – 35.98% depreciation
  • Six years old – 39.54% depreciation
  • Seven years old – 41.15% depreciation
  • Eight years old – 43.16% depreciation
  • Ten years old – 60% depreciation (I noticed a big drop on this one–I guess 10 years old sounds a lot older than 9 years old to potential buyers)
  • Thirteen years old – 69% depreciation
  • Fifteen years old – 76% depreciation
  • Twenty years old – 86% depreciation
  • Twenty-Nine years old – 96% depreciation
  • Thirty years and older – Basically hovers at about $2,000 because the RV still has some value as long as it drives
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Old 10-23-2018, 12:32 AM   #4
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If you’re buying one of these and worrying about depreciation, you shouldn’t be buying one of these.
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Old 10-23-2018, 04:51 AM   #5
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If your going to worry about depreciation on any RV type DON'T BUY. If you want appreciation stay in your house. It's a fact of life.
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Old 10-23-2018, 05:58 AM   #6
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BTW way theoc, good read.

To the OP...this doesn't answer your particular question but I thought I'd chime in for others that may read this post.

My thoughts on this depreciation thing...
Depreciation usually is expressed by people here to express how much money you will loose on a new RV. However, depreciation or loosing money right off the bat is only realized IF you sell or trade in the RV.

I do understand what people mean when they say, "buy a gently used coach, let the other guy take the hit on depreciation." Yes, the seller will take a hit. Why? Cause he's SELLING IT. If he decided NOT to sell it and keep it for another 5, 6, 7 years or more, he'd get his money out of the coach, he wouldn't be taking the big front end hit and he'd just sell it used like anyone else would on the open used market.

I've had friends tell me...it's crazy buying a new car or truck. They said, "don't you know the minute you drive off the lot it is now a used vehicle and you're going to loose thousands of dollars?" I've bought many new cars in my life time and have never realized this depreciation. Why? Because I take care of my vehicles and keep them for a long time and then when I do sell them....yep they're just another used car and I got my money's worth out of them.

It's like doing any type of upgrades. When I had my Harley, I did all kinds of cool upgrades to it. Some people would say, "you know, that doesn't add any value to your bike". You're going to loose money on that deal! Again, I'm not going to loose any money. I'm going to enjoy my bike for many years and get my monies worth out it. After that I just sell the bike as a used bike. Now if I poured money into that bike with a lot upgrades then sold it a few months later, then yes, that would be stupid and I'd loose money.

This is why I say, "if you as a buyer have the budget for a new RV or new anything for that matter, by all means move forward and buy it. You'll be fine money wise as long as you don't sell early.

That's my take on this whole subject.
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Old 10-23-2018, 06:47 AM   #7
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About 5% depreciation per/year long term. This message will self destruct in 5 seconds and we all better forget it so we can enjoy our MH's.
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Old 10-23-2018, 06:59 AM   #8
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Originally Posted by marjoa View Post
....I've had friends tell me...it's crazy buying a new car or truck. They said, "don't you know the minute you drive off the lot it is now a used vehicle and you're going to loose thousands of dollars?" I've bought many new cars in my life time and have never realized this depreciation. Why? Because I take care of my vehicles and keep them for a long time and then when I do sell them....yep they're just another used car and I got my money's worth out of them.....
What if you chose to drive the used trucks your entire life and invest the difference the whole time. If you invested in both real estate and mutual funds wouldn't you likely have a substantial larger net worth than the guy buying new trucks and not investing as much. More power to you if you can do both. From what I've read millionaires don't often buy new vehicles. The above strategy is working for me. I do have to admit I bought our first new car (16K) in 25 years this year for my wife. I'm driving a 2000 BMW that stills rides and drives great.
Just one guys opinion......
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Old 10-23-2018, 08:50 AM   #9
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Originally Posted by okcnewbie View Post
What if you chose to drive the used trucks your entire life and invest the difference the whole time. If you invested in both real estate and mutual funds wouldn't you likely have a substantial larger net worth than the guy buying new trucks and not investing as much. More power to you if you can do both. From what I've read millionaires don't often buy new vehicles. The above strategy is working for me. I do have to admit I bought our first new car (16K) in 25 years this year for my wife. I'm driving a 2000 BMW that stills rides and drives great.
Just one guys opinion......
That's what I did and it worked for me too. However, I'm no longer in the "wealth accumulation" phase of my life and fully intend to spend as much as I comfortably can.
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Old 10-23-2018, 09:28 AM   #10
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That's what I did and it worked for me too. However, I'm no longer in the "wealth accumulation" phase of my life and fully intend to spend as much as I comfortably can.
That's awesome. I'm glad to hear you're going to actually spend some of that hard/smartly earned money. I've read many articles where after years of saving many seniors just can't allow themselves to spend.
I have to admit that the investor side of me is going to find it difficult to put money into a fairly expensive money pit (MH).
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Old 10-23-2018, 02:34 PM   #11
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I recently sold after 14 years my Dynasty (bought 9 months old) for 33% of the purchaser price...67% depreciation or $13,000/year. I bought a 10 year old replacement for 36% of its new purchase price (64% depreciation)...other similar rigs were asking closer to half of the purchase price, maybe why they had not sold.

$13,000/ year plus fuel, repairs and CG fees makes for an expensive sport and well worth it since I replaced it with a nicer rig. Have always said a large DP is the nicest and most expensive way to see the USA.
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Old 10-23-2018, 02:42 PM   #12
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....$13,000/ year plus fuel, repairs and CG fees makes for an expensive sport and well worth it since I replaced it with a nicer rig. Have always said a large DP is the nicest and most expensive way to see the USA.
If I understand your numbers that comes to just under 5%. That's the number I've decided is about average.
Love the Navigators! Very nice MH.
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Old 10-23-2018, 04:29 PM   #13
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All the text book depreciation values are based on MSRP, not the actual sales price. NADA RV Guide numbers work out to about 30% off MSRP for the first year values, and another 5-6% per year after that. Popular models run a bit less, while oddballs or those that get a bad rep for some reason depreciate a bit more. And that's retail value - no dealer is buying at those prices, or giving a trade-in anywhere near that either. He buys/trades at wholesale, which is probably 40% below retail.
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Old 10-24-2018, 05:09 PM   #14
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You do not always loose on a motorhome. My first motorhome I bought in the middle of the fuel crisis. Jan of 64 I bought a 18 month old 1972 Open Road for $6,000. I drove it 5 years and 50,000 miles and sold it for $7,500. A 25% profit. My fourth motorhome was a 1995 Airstream. I paid $23,000 for it and drove it for 5 years and almost 60,000 miles. I sold it for $23,000. Exactly what I paid for it. I am not trying to say this is the normal, but it does happen.
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