I have another thread called http://www.irv2.com/forums/f258/why-...ge-322831.html
and you can click on the threads name above if you wish to read it.
I chose not to include this in the above thread because it already has over 100 posts. Someone new to the forum seeking information may not want to sift through that many posts. That said; there’s is some excellent things to read there if you’re interested. With that stated, lets get going...
I was thinking about the “New & Used Class A” conversations we often have on the forum. One point we often discussed is the dreaded “D” word” for Depreciation. It’s often used in the context of buying New or Used and is often times championed as a good reason to “NOT” buy new! With your kind indulgence I’d like to expand on this conversation a bit!
Most of us when we go out to make a major purchase set a budget. Sure we’ll increase it a bit because it’s “just the right one” but a budget none the less! I know some have resources to the point a budget is unnecessary and we’ve never liked you by the way!
Lets say for the sake of this discussion that we decided on a budget of $250,000.00. That’s the amount we’re budgeting to buy our coach and new or used is irrelevant at this point. The budgeted amount is $250,000.00 and that’s where we are!
With a new coach you know what the MSRP is and its the same amount for that coach at every dealer. The only thing changing the MSRP price is the cost of the options. But you load up the options the same way and the price is the same. No guesswork!
Now the question is the negotiate price? If the MSRP is $335,000.00 and you negotiated 25% off you bought the coach for $251,250.00, Wow you’re right on budget, what a man - what a man! So $251,250.00 is the starting point of YOUR REAL depreciation! Now just for the fun of it lets say you don’t get 25% off? Lets say you’ve developed negotiation fever and you don’t get 25% off, you get 30% off MSRP? The price of your new coach now becomes $234,500.00 a difference of $16,750.00 and you are a negotiation animal and the top of the motorhome food chain, the king of the jungle, and I could go on but you get the point... You did “More Gooder” with 5% more off MSRP. And YOUR REAL depreciation starts right there at $234,500.00.
In these two examples, which one will pay the greatest depreciation in REAL MONEY? If you said the one who paid $234,500.00 you are absolutely WRONG! It’s the first guy who paid $251,250.00. If you want to get yourself underwater in a hurry, pay too much for your coach! When you sit down with your accountant at years end you may hear someone say oops... Whats worse is that someone is you!
With a used coach you can find out what the MSRP was back when the coach was new but it may have little basis on what the price is going to be for the actual unit you’re looking at. You can look at NADA, PPL and other places on line as a guide. You can also ask questions on the forum to give you direction as well.
Just be cautious in discussing new or used because there are some on the forum (not this one of course) who have no filter on their likes and dislikes and what all of us need is objectivity. Thankfully for me I have no such problem with objectivity, Chevy is better than Ford, always has been and always will be! Wow, fair and balanced and objective to a fault right?
My point, check your sources and know FACT from SUPPOSITION, not necessarily an easy thing is it? But something you hear repeated three times by three different people may be more to consider than that which you heard once!
We’ve all seen how it works sometimes, you mention Thor and the entire eco systems falls apart. You mention Newmar and God’s blessings are upon yee! I mean no disrespectful to you the reader, and certainly not to the deity (I’ve been good God, really! And it was Zelda’s fault!) And for the record, I don’t know a Zelda, so please don’t call or write!
When buying a used coach you’ll be looking at Condition, ownership, maintenance documentation etc, not typical concerns of a new coach! And lets remember the more you know about motorhomes the more apt you are towards the selection of a good one. The less you know about motorhomes the more you have to depend on others. Yes you have the forums, the internet, videos etc to help in your process and progress. But it’s a YOU thing to learn, retain and go forward in the selection process.
In the example of the New coach, if you pay too much for a used coach your in the same BIG TROUBLE MISTER from the depreciation scenario. Pay too much and your depreciation is greater. The Numbers don’t lie!
The new coach comes with a 12 month warrantee. You can get a warrantee with a used coach but its expensive and if you decide to get it you need to factor it into the actual cost of the coach. You also need the ability to read and understand the fine print... You don’t want to buy a group plan where the only time it pays is when everyone in the group has the same problem!
A question; How many of you have been driving, maybe in the Rockies, looking out at the wonder of it all and said or thought to yourself “what makes this trip so wonderful and the Rockies so beautiful is my depreciation is 5% less than it could have been?
Let me see a showing of hands? OK the Nays have it! Hey Harry you didn’t call for a voice vote! See, fair and balanced!!!