Remodel options

[dave&ginny]

The guy I talked to is from Master Tech RV

[LWBAZ]

Dave, I’m late to this discussion but found it very interesting reading. For what it may be worth to your decision process I’ll offer a bit of a counterpoint.

You’re right that the cost to remodel your 2015 Aspire will be a lot less than the cost of stepping into a new coach. But keep in mind that when you part with however many dollars you end up spending to spiff up the Aspire, its market value isn’t going to increase very much if any at all.

The upgrades you have in mind might well improve marketability (how desirable your coach is to a prospective private-party buyer), but they’re not likely to have much impact on value (what the prospect is willing to pay). And if you do a trade-in, you can be virtually certain no dealer is going to give you any additional dollars. To them, it’s just another 2015 Entegra Aspire 42RBQ.

My point is that the RV market isn’t quite the same as the housing market. Our house in north Scottsdale is right across the street from a group of houses built some years ago by one of the prominent homebuilders in this area of the country. The houses have ample square footage, lots of bedrooms & bathrooms, and sit on one-acre lots. They’re reaching an age that a number of owners have done or are doing extensive remodeling and updating. And as you might expect, the remodeled houses are selling for significantly more than the houses that haven’t been redone. Unfortunately, it doesn’t usually work that way with recreational vehicles.

Something else to keep in mind, as I’m sure you know from your home remodeling experience, is that remodeling projects tend to take longer and cost significantly more than originally envisioned. And once your home or RV has been torn apart, you don’t have much of a choice but to see the project through to completion, regardless of what the final cost may turn out to be.

Please be assured I’m not trying to rain on your parade or dissuade you from what you have in mind. My intent is simply to present another perspective for your consideration. Good luck with your decision process and best wishes for a thoroughly satisfying outcome regardless of what you decide to do!

[MRUSA14]

Yes, but the first day depreciation on a new coach is likely more than the entire cost of the upgrade on the older one, so the upgrader does not have to recoup the upgrade cost to come out ahead. In addition, the upgrader has features and floor plan changes the have been customized to his specific wants and needs, which he would not have by buying a new coach.

[Ann n Gene]

To me it all comes down to how long you intend to keep it. If your plan is keep it a long time, I would say go for it, money very well spent. If, on the other hand you plan to trade it in 3-7 or 8 years I think you will find you will take a big hit because you have changed it substantially from factory delivery. That is not a factor on coaches 10 or more years old as that market tends to be cash buyers and folks who like to tinker and fix their own. Just a thought and all JMHO

[brobox]

Originally Posted by Ann n Gene

To me it all comes down to how long you intend to keep it. If your plan is keep it a long time, I would say go for it, money very well spent. If, on the other hand you plan to trade it in 3-7 or 8 years I think you will find you will take a big hit because you have changed it substantially from factory delivery. That is not a factor on coaches 10 or more years old as that market tends to be cash buyers and folks who like to tinker and fix their own. Just a thought and all JMHO

I had a dealer from La Mesa RV called as soon I as my Anthem hit the market. One of his first questions was, "has the floor plan been changed". I guess is effects resale more than I thought.

[lowejug]

These dealers don’t like anything changed ... they even want the original bed spreads and pillows as they ask for that on a trade in sheet ... mods and remodeling mean nothing to these dealers.. it’s like putting a after market stereo
And wheels on a car.. you won’t re coop the money...
I think gene is correct in saying it all depends on the length you plan on keeping the coach.. if you intend to pay it off and be content then do what ever you will enjoy but if it’s short term then be minimal in after market expenses...

[LWBAZ]

Originally Posted by MRUSA14

Yes, but the first day depreciation on a new coach is likely more than the entire cost of the upgrade on the older one, so the upgrader does not have to recoup the upgrade cost to come out ahead. In addition, the upgrader has features and floor plan changes the have been customized to his specific wants and needs, which he would not have by buying a new coach.

Agreed. My intent wasn’t to say an RV remodel is a bad idea; just that it isn’t the same as a house where a major remodel can and often does result in a substantial increase in market value.

If the only concern is which option leaves a given owner money ahead on day one and the cost to trade up to a new coach is $100,000, a given owner could spend $99,000 on a remodel and be money ahead at that point in time. But as Gene and others have pointed out, whether a remodel is well advised tends to be heavily influenced by how long the owner contemplating the remodel expects to keep the coach.

Consider the following scenarios:

Scenario Number 1 – The owners of a 2015 Entegra motorhome decide to spend $25,000 on a significant remodel. The remodeling work is completed in late 2018, when 2019 Entegra coaches are on dealer lots. A few months later the 2020 models are announced. Our owners check them out and see some things that really catch their attention. But as much as they might want to step up to new 2020 coach, they aren’t about to flush $25,000 down the drain only a few months after completing their remodeling project.

Scenario Number 2 – Same as Scenario #1 but now it’s the spring of 2021 and the 2022 models are hitting the dealerships. Our owners look them over and see some features and functions they’d REALLY like to have. They resist, but by fall of 2021 they bite the bullet and purchase a new 2022 coach. At that point the remodel cost has been spread over three presumably enjoyable years, so an $8300 per year hit may well be acceptable.

Scenario Number 3 – Same as Scenario #1 but now it’s the fall of 2023, so our owners have enjoyed the benefits of their remodeling project for a full five years. As such, the amortized cost of the remodel is only $5,000 per year, so at that point it wouldn’t hurt much at all to pop for a shiny new 2024 coach, or wait a few months for a 2025.

In all these scenarios (and any others) the cost of the motorhome remodel project is very unlikely to be recouped, but the more years the owners enjoy the benefits of the upgrades the less that tends to matter.