Depreciation concerns

[Old Scout]

All good input so far but if you are going to insist on making this a financial analysis--you need to make it an "apples to apples" comparison. First--you cant compare the cost of any RV to the alternative of just staying home. Second--assuming your overall goal is to travel, then you need to compare the cost of Rving vs another option--like airline tickets [for the whole family], rental car, hotels, meals, etc. Once you have a baseline for both modes of travel, it tends to come down to how long? The price of everything is up these days but the last time we made the calculation with some of our RV "want-a-be" friends, the "break-even" point was about 4 months on the road. If you spend more than 4 months per year on the road then Rving is "potentially" cheaper. However, there is no comparison for the quality of life on the road. After nearly 11 years and 135,000 miles, it clear to us that Rving may well be one of the last truely free experience left; I mean, the memories we have made are "priceless!" Good luck on your decision....

[NITEHAWK]

Just for the heck of it I averaged your figures and calculated your fuel costs at $4/gal and used your depreciation figure of $50,000 and came up with a yearly expense of owning and using an RV. It comes out to about $9,796.70/year. How far and how much can you do a year on that amount? That figure does not include insurance, meals, CG fees and anything not relative to your travels. So take the $816/month and add what you think you will spend a month. The more you add things up a big depreciation really inflates your yearly operating costs. Your call on new or used is what I am trying to say.

[TXiceman]

An RV is not an investment...it is a declining value asset. The best way to minimum losses is to buy a gently used pre-owned unit. We bought out last 5er when it was 4 years old and at 40% of the value of a new one. It will serve us well.

Ken

[DeWat]

Originally Posted by baraff

If you pass on the Breeze, please let me know where it is, because I could be interested. (convincing the wife might be a challenge though)

'12 Breeze, dealer asking 125, Manassas, VA: Used Tiffin Allegro Breeze for sale in Manassas VA | 2012 Tiffin Allegro Breeze 28BR Class A For Sale from Reines RV Center, Inc. in Manassas Virginia - Reines RV Center

EDIT: The ad says recent trade in, but it's been there at least a month so negotiating shouldn't be too hard.

[deandec]

Think of your RV as a substitute for a 10 day Mediterranean cruise.

Annual cost of depreciation and that cruise would be about the same.

You get to enjoy the RV all year long.

[dfunde01]

Originally Posted by Pasture

Yes, $100k is asking price. Here is my question-I almost bought a '99 georgie boy 35' diesel in great shape with 30k miles for $29,500. But with the long wheelbase and taller height, I knew it wasn't ideal for simple vacations (we don't want to tow a car) and it wouldn't fit in my shed. THe breeze is the perfect size, it has the same wheelbase as a crew-cab truck, fits in my shed--my wife can easily drive it. I can buy it with cash, but maybe I should rethink an older diesel in the $30-50k range and be okay with renting a car once we get to our destination? It seems a 2011 diesel will depreciate 10% a year, and a 5-10 year old unit may depreciate 5% a year. All toys depreciate, so I am just rethinking. Thanks for the advice.

You will find that using the Breeze as you only means of transportation isn't really practical if you plan to use it for sight seeing, running errands, going to dinner, etc. Setting up and taking down becomes a real hassel. You really need a car to enjoy your stops along the way. Of course if you plan to spend most of your time in the camp ground you'll be fine. One of the new Class B's would give you everything you're asking for including the MPG.

Dave

[Cfyanes1]

Start a legit LLC, buying it using the LLC, rent it or find some other money making business and depreciate the coach, the LLC might even lose money, tax bennies there too

[CountryFit]

Originally Posted by cfyanes

Start a legit LLC, buying it using the LLC, rent it or find some other money making business and depreciate the coach, the LLC might even lose money, tax bennies there too

a good one. it normally depreciates completely in 7 years. as only your llc is making money it'll be all good (beware if llc loses money continuously more than 3 years, uncle sam might knock on your door

rving is a lifestyle, money should be a very light weight in pros/cons equation. i regarded the money spent on rv as a disposal, never thought i would reclaim it someday. enjoy it.

[Pasture]

Originally Posted by dfunde01

You will find that using the Breeze as you only means of transportation isn't really practical if you plan to use it for sight seeing, running errands, going to dinner, etc. Setting up and taking down becomes a real hassel. You really need a car to enjoy your stops along the way. Of course if you plan to spend most of your time in the camp ground you'll be fine. One of the new Class B's would give you everything you're asking for including the MPG.

Dave

This is a good point. I was set on the breeze 28 due to the floor plan and short wheelbase, but I see your point about the hassle of setting up and taking down. That is why I turned down the '99 Georgie Boy 35' Cruisemaster diesel for $29500. In the end, the Georgie Boy would probably get similar mpg (5.9 Cummins) and I could rent a car when I get to my destination/national park. I am curious how many RV'rs rent a car instead of towing. I own farm ground and cattle through an LLC, and sometimes have to travel from Iowa to Nebraska to check the ground, and I thought about purchasing the RV through the LLC. $29,500 would be a softer hit than the $100k Tiffin Breeze (and give me 5 more feet of living space). Thanks for all the advice-I should seriously think about this Georgie boy.

[TGR]

We have been RVing for the past 12 years, and bought a new Tiffin Allegro 2 years ago. Yes, we would lose money if I sold it today. BUT the memories my family has are worth every penny. Actually more.

If we didn't have our motorhome I wouldn't vacation anywhere near as much as we do now. You could look at it as a depreciating asset, and might never buy an RV. I look at it as an investment in family time. We get a far bigger return than the monetary cost.

[BobGed]

Originally Posted by baraff

If you pass on the Breeze, please let me know where it is, because I could be interested. (convincing the wife might be a challenge though)

There are a few Breeze's listed for sale here: TiffinRVNetwork Classified Ads - Browse Ads

[Bama Fan]

Went through same thing you're going through a while back. Decided to buy used 1998 Fleetwood Pace Arrow 35' with tag axel. Got a great deal at a local dealer and purchased it in the winter. (off season) I had not had a class A but wanted one for the size. Best decision I have made in quite some time. We haven't spent much on it and did have to fix some minor things. (fixed myself) The depreciation from this point will be small each year and it gave us an oportunity to see if we liked it without spending a lot of money. We like it so much that we will be keeping it for several more years with no intentions of selling it or tradeing it. Its a 460 Ford gas unit with automatic overdrive and gets 8+ miles per gallon. Grandchildren love it. I got to the point that I just couldn't, in my old brain, substantuate spending over $13 to $15,000 to experiment to see if I was going to even like it. Good luck with your decision.

[wincrasher]

If you are concerned with selling it on in a few years, then I suggest you buy something that has the most appeal to the largest segment of the market. Buy something high quality and a brand that has a great reputation. Tiffin is a good choice, but I think the Breeze has limited appeal. Be sure you are comfortable with it's driving dynamics, as short wheelbase units are notorious for poor handling characteristics.

If you simply want biggest bang for the buck, it's hard to beat a travel trailer, but that's a whole other debate.

[Go Dawgs]

If you want to know some idea of the depreciation go to NADA and pull up the make and model of what you want at a 2003 or so and it will give you the base price and what it's worth today. Also I don't thing 11-15mpg is realistic more like 6-9 maybe 10. If you are worried about justifing the cost then I would say don't do it. For me it's not about the money to buy or maintain, it's about the time I can spend with family and friends. My first family I spent no time and now I spend time. Life is too short.