Community Forums

ikold · 11-27-2015, 07:13 AM

We all know that 26-32% off of MSRP is readily achievable when buying new. I was curious what to expect when buying new for 1st 2nd and 3rd year depreciation? Was always told when you drive off the lot with a new car you can expect to lose about 20% immediately. When calculating total cost of ownership should I use 25% in the first year 20% in the second and 15% in the 3rd ?
Our last coach was a Country Coach Magna and we were pretty surprised at the rate of de-preciation in it (but that was 2012).

J

sbahrns · 11-27-2015, 07:54 AM

There are so many factors involved in resale that I think it is hard to quantify, but I did find this article. It is a few years old, but the note at the beginning indicates that it is still basically valid. FWIW.

http://http://www.rversonline.org/ArtNewUsedRV.html

Dave.O · 11-27-2015, 07:55 AM

ikold

I have used 10% per year after the initial discount range you applied. Surprisingly it has been pretty close (on balance) to market when I apply to coaches that are 2+ years old. Of course there are high and low outliers. I use a simple Excel spreadsheet to run the calcs.

Algoma · 11-27-2015, 05:03 PM

I think if you are worrying about depreciation you probably should not be buying a new motorhome.

powercat_ras · 11-27-2015, 05:11 PM

Your best bet if the model coach you are buying has been built for a few years, just look on RV trader and see what the price range is for 1, 2, and 3 year old ones. Then assume about 5 % less than that would be your private sale value, and about 25 % less would be your "sell to a dealer" value.

Mike and Cha · 11-27-2015, 05:22 PM

Quote:

Originally Posted by Algoma

I think if you are worrying about depreciation you probably should not be buying a new motorhome.

X2...You buy these to enjoy the great outdoors not as an financial investment, but an investment in your lifestyle. You don't suffer any depreciation if you keep it and don't keep buying a new one every few years. Also depreciation is directly related to how you maintain it.

wolfcreek · 11-27-2015, 05:35 PM

I try very hard not to think about the $$$$ swirling down the drain....

wildtoad · 11-28-2015, 04:09 PM

Quote:

Originally Posted by Algoma

I think if you are worrying about depreciation you probably should not be buying a new motorhome.

Yep. Or a new car.

Scottybdivin · 11-29-2015, 08:44 AM

Here's a spreadsheet someone posted a while back. This site will not let me load the actual excel file. I'm not sure where the info came from or how valid it is. Just for conversation only, but you can see where the author shows his yearly depreciation.

Depreciation on a NEW Motor Home

Percent $$$ MSRP
Enter New RV's MSRP "$ 453,000.00"

Driving off Dealers LOT 30 " 135,900.00 " "$ 317,100.00"
You MAY change this PERCENT number if you disagree.

Depreciation Wholesale Prices
Year % $
1 18.00 " 57,078.00 " "$ 260,022.00"
2 10.00 " 26,002.20 " "$ 234,019.80"
3 7.00 " 16,381.39 " "$ 217,638.41"
4 6.00 " 13,058.30 " "$ 204,580.11"
5 6.00 " 12,274.81 " "$ 192,305.30"
6 5.00 " 9,615.27 " "$ 182,690.04"
7 5.00 " 9,134.50 " "$ 173,555.54"
8 4.00 " 6,942.22 " "$ 166,613.31"
9 4.00 " 6,664.53 " "$ 159,948.78"
10 3.00 " 4,798.46 " "$ 155,150.32"
11 2.00 " 3,103.01 " "$ 152,047.31"
12 2.00 " 3,040.95 " "$ 149,006.37"

NOTE: Depreciation start from Driving off Dealers Lot value NOT from what we paid.
Discounts from MSRP varies from Manufacturer to Manufacturer, Dealer to Dealer and
HOW GOOD OF A DEAL WE MAKE.
Yearly PERCENT Depreciation Numbers are from numerous sources including NADA
These are average values. Some Manufacturers product will depreciate faster or slower.
You may change these numbers to reflect your understanding of the depreciation. .

Tony Lee · 11-29-2015, 11:22 AM

All true plus or minus a few percent which is why we prefer to have the first owner suffer all the angst of out-the-door losses and warranty hassles while we reap the benefits.

Actually we don't have a problem with buying 10 year old vehicles (and even 20 year old ones) that have been reasonably well looked after because they are nowhere near the end of their useful and economic life. Does need a slight ego-adjustment and abandoning any notion of keeping up with the neighbors, but results in a lot less worry about finances.