Figuring out what to do with our mostly unused RV

[albih2]

Hi !

Me and my wife bought an RV a year ago (Winnebago Minnie Winnie 25B 2014), we had some issues we tried to work through by changing our lives all around (stress at work, difficulty conceiving a child) and decided to move to the other side of the country (We're in Canada, moved from East to West).

We always wanted to do a cross-country trip and decided to buy a RV because the rental prices seemed way excessive (that being said, I can see why it would have been an OK option now).

Our plan was to buy east, travel for a few months, and sell west. We considered about ~5 to 10k of loss on the RV sale was an acceptable price to pay (and about what the rental would have been).

The problem we face now is that the RV is just not selling, not for a 10k loss anyways. We consigned it for a couple of months at a nearby dealership but that didn't work out at all, even though they said it was a great unit.

We had it inspected twice (state inspection is recommended for the sale) and took great care of it, the issue is just that the market here is very small (we moved to a rural area, ~4 hours from Vancouver).
So we are currently trying to consider all our options with it.

We'd really like to sell it because the loan we are repaying brings us to about 50% of debt to income ratio (we got a child, a month old, our plan worked, yay ! But we also got only one salary now...) and while it's definitely liveable, it's just money that we throw out for nothing.

We already took action and put it on the market in the nearby cities (in a ~4 hours range from our location), but so far we didn't get any interest except a few people looking to rent it.

We currently have 2 options we're considering:

1- Further reduce the price

2- Start renting it out to at least even out the monthly payments we're making on it

The problems with option 2 is that I think it loses a lot of value as soon as you start renting it and it will also involve taking a specific insurance that will be very costly so if we have troubles renting it we'll end up paying more than today (though the renting market here is pretty important, we live in a very touristic area).

If we end up renting it, we will probably use it from time to time though, so it will be an advantage for sure.

We're looking for any advice, opinions that could help us decide what to do

Thanks !

[Kro1957]

I would never rent it out. Not an option for me as the seller.

You did not mention the selling price and options on it. Might look on places like RVtrader to see where you are at price wise. Perhaps you are upside down on the unit and even with a price reduction might have to come down a tad bit more.

I would list it on various places like here on irv2, RVtrader, and put down that you will even deliver the unit once it is paid for. Find a large show/s someplace and take your rig, park it nearby and it will draw interest. Use social networks for postings. Have you posted it on irv2? Classifieds?

[albih2]

Originally Posted by Kro1957

I would never rent it out. Not an option for me as the seller.

You did not mention the selling price and options on it. Might look on places like RVtrader to see where you are at price wise. Perhaps you are upside down on the unit and even with a price reduction might have to come down a tad bit more.

I would list it on various places like here on irv2, RVtrader, and put down that you will even deliver the unit once it is paid for. Find a large show/s someplace and take your rig, park it nearby and it will draw interest. Use social networks for postings. Have you posted it on irv2? Classifieds?

Are there a lot of Canadians in irv2 and rvtrader ? I looked at selling across country lines but it seems to be way too complex. I posted it only on Craigslist and some local Facebook groups.

We're asking 62,000 $CAD for it, so about 50,000 USD$, I found a similar ad here: http://www.irv2.com/rvclassifieds/sh...nnie-25b&cat=7

Our model is a year older though but it comes with 2 years of extended warranty (worth ~5000$) + a few other things we added that cost us about 3500$. We have 72,000$ remaining on our loan.

[2-Nickels]

I would consider exporting it to the US and put it on consignment with a US dealer. The market is much larger in the US and with the 20 percent exchange you should see a much smaller loss even after dealer commission.

[tderonne]

NADA low retail is at about $35K (USD). (I assumed a Ford chassis). Says MSRP was $70K, so you would have paid like $52K for it here in the US. So as a casual observer of the market, yes, your price seems high from a US perspective.

[albih2]

Originally Posted by tderonne

NADA low retail is at about $35K (USD). (I assumed a Ford chassis). Says MSRP was $70K, so you would have paid like $52K for it here in the US. So as a casual observer of the market, yes, your price seems high from a US perspective.

We bought it for 58,000 $CAD + extended warranty (+ 6000 $CAD) + additional house battery that needed to install a larger battery compartment (~600$) + we also took a additional package with a treatment on the fabrics and the outside that costs about ~1000$ + the 15% taxes.

For the resale price, I basically took the current value (in $CAD) of the VR (about ~54,000), added 3000 for the extended warranty, 2000$ for all the additions we bought (including lately a new awning) and half the cost of what the taxes would be.

It seems fair to me but maybe you're right and it's just too much.

The problem then is that we can't really afford losing more than 10,000$ on the resale, so we're back to square 1.

[jarata]

Wait you paid 58,000 with an extended warranty and a few other things it's a few years old and your selling it for 62,000.Im guessing that's why it's not selling,deprecation is a ton in the first couple years of ownership.

[tderonne]

You are not alone. Many people in the same boat. Cost too much to sell. If you really want to feel bad, take it to a dealer and see what they'd offer you on trade. I can save you the trouble, it's just over $30K, about 90% of low retail. No options, no adding this, or counting that. Trouble is that drives the whole market. Most every one looks at low retail. If they don't like you asking price, they keep looking, find that guy who just got the number from the dealer and will sell it to anyone for that price just to not be ripped off by the dealer.

I tell folks who ask me about RVs that if they think renting is expensive, try owning one. You now know what I mean.

Best of luck. If you are 4 hours from Vancouver, is the Alaska market something you could enter? I have no idea if the market is flooded with used rentals there, having just been there, there seems to be a lot of demand. Free delivery could make a nice Alaska trip for you, just need to get home.

[albih2]

Originally Posted by jarata

Wait you paid 58,000 with an extended warranty and a few other things it's a few years old and your selling it for 62,000.Im guessing that's why it's not selling,deprecation is a ton in the first couple years of ownership.

What would be a correct price in your opinion ?

Since we don't have more than 10k to put on the sale, in these situations do you know if people just take another loan to repay the bigger one ?

[MSHappyCampers]

As others have said, I would NOT rent it! The Classifieds here on IRV2 and RVTrader.com would be your best way to sell it!

[89sandman]

I'd say no slides is your biggest hold back. When people spend that much cash they really want them. Extended warranty is nice with the other extras but really ads nothing to the resale value, may make it a little easier to sell. The class C market after being unstoppable for the last few years has really softened. I'd use craigslist if you have it up there. Without knowing the miles average book is $45k US if it's a Ford, whatever extra you get added for miles is what banks will loan on it so that's about what it's worth.

[asuperheat]

Sell the warranty back for the remaining value and drop the price as much as you can would be my suggestion. If you financed all the warranty, fabric care ect. you are just upside down.

[Dutch Star Don]

Your initial plan was good, you just figured the numbers wrong. When you talk about using it for a year and then selling it for $10K less, you were not to far off base. The problem is......the $10K less is subtracted from the cost of the motor hoe before additions, options, extended warranty and taxes. My guess would be to list it at $48K ad try to get $45K (Cdn). In the U.S., you would be down to the high $30's.

Sorry your plan didn't work out, unfortunately you were too optimistic on prices. Good news.....you had a baby.

You don't really have many, if any options, other than lose the money. Here is an idea that might help you out. Could it be placed in a mobile home park and rented out as a permanent rental. Not for travel, just living. It may hold up long enough to see your way clear of it, or at least make the payments until you can unload it. It will get abused, but you don't have a lot of choices.

[albih2]

Originally Posted by Dutch Star Don

You don't really have many, if any options, other than lose the money. Here is an idea that might help you out. Could it be placed in a mobile home park and rented out as a permanent rental. Not for travel, just living. It may hold up long enough to see your way clear of it, or at least make the payments until you can unload it. It will get abused, but you don't have a lot of choices.

Thanks for your reply.

With all these replies, we decided to put down the price to 59k negociable, we discussed with our bank and they'd be willing to loan us the difference (but no more than that), so we'll see if it gets any interest for that price range.

On the other hand, we just moved into our house and we have an RV pad, we can hookup our RV to water / electricity and sewer, I'm wondering if renting it as a studio would work, as you suggested.

Anyone tried that ?