Community Forums

UAV · 12-27-2014, 07:23 AM

I know this has been talked about a lot and has been a topic in the past, but I was wondering when depreciation stops, if ever?

We hear about it all the time but is there a formula (I think I saw one on this fantastic forum once before!) that one can use to sort of know values?

Also, my guess is that if you keep a coach in excellent condition with some nice updates/upgrades, etc. that the value can only go down so far? Or am I wrong?

Thanks all!

palehorse89 · 12-27-2014, 07:33 AM

At 20 years old, anything is a "Classic" and at 25 years old....."Antique"
I am going to say at these years.....just about bottomed out........As far as condition, yes, I am a person that will pay extra for the condition of a item if it is/was taken really good care of. Once something is in the 20 - 25 year old range in the RV world, most are hard to sell......not like a classic muscle car that gains value......
My Coach is still on NADA and at 15 years old this year, it is still going down.......

flaggship1 · 12-27-2014, 07:38 AM

There are useful thoughts and ideas here... http://www.myrv.us/pgs/rv/depreciation.htm

Smitty77 · 12-27-2014, 08:24 AM

I'd say in general, the answer is that is accelerates down quickly as you drive it off the lot new, slowing down to mere free fall from age 4-6, slowing down more in years 7-10. And from 10 to say 20, not too painful of a hit each year.

We actually were in a bit of luck when we bought our then 6 years old Country Coach, as it was very close to the bottom of the tremendous downturn on RV's, boats, etc. after the economy was hit so bad. Soo many people were getting 'out from under' expensive toys - that we got a good price on our coach. (And our deal was not one of the many 'killer deals' that were available. Ours was a 'fair price' for the what the market would bare at that time.). We actually saw some price increase as the economy turned around. Not the norm for sure, but suspect others who bought at the bottom, saw some of this too.

I also will share my opinion that certain rigs, will in their golden years, retain and may actually increase in value. Old Birds/Wanderlodges, GMC Class A, FMC Rear Engine Gasser, Airstream Class A, Airstream trailers are some examples. I feel restored rolling classics, say like the Country Coach Concept's, Country Coach Prevost's, etc. Are also showing collector like rolling classic price increases, for well rejuvenated models.

But as a general rule of thumb, the value to ownership of most of our Class A's and other RV's - are paid by the dividends of smiles by the miles as we're using them. That is priceless, as we only go around once on this trip!!!

All are just my opinions, and opinions due vary

!
Smitty

jplante4 · 12-27-2014, 08:32 AM

I'm selling my 20 year old class A rig for what I paid for it 2 years ago. Of course, it's in much better shape now that when I bought it. Gotta get my sweat equity back.

flaggship1 · 12-27-2014, 08:44 AM

Quote:

Originally Posted by jplante4

I'm selling my 20 year old class A rig for what I paid for it 2 years ago. Of course, it's in much better shape now that when I bought it. Gotta get my sweat equity back.

I think you and Smitty77 have hit upon the big factors in that condition matters in determining residual value. The problem can be finding a cash buyer or one with enough cash to put down to bring it to bank financing value, assuming an age a bank will loan on. And then their is your ability to offset $'s with smiles.
When you spend $200 or more to take the family through the gates of the magic kingdom or a Waterpark or a pro-football game - you don't think about getting money back. You grab the adventure and good times by the scruff of the neck and enjoy the heck out of it. With RVs the time to get out is when the dollars going in don't equal or exceed the smiles coming out. And you should have a good idea about your ability to "bank" smiles and good times long before you ever buy one.

Somebody once said - The Journey is the Destination!

Peralko · 12-27-2014, 09:32 AM

I just checked the NADAguides for our coach, and the retail listed is actually slightly higher than when I checked earlier this year. It has not changed much in the last two years.

DMTTRANSPORT · 12-27-2014, 09:39 AM

Yep, upside down leaving the lot......

palehorse89 · 12-27-2014, 09:42 AM

Quote:

Originally Posted by DMTTRANSPORT

Yep, upside down leaving the lot......

Not when I bring my best friend with me to the lot, maybe you know him? ........"Cashis King"?

DMTTRANSPORT · 12-27-2014, 09:48 AM

Quote:

Originally Posted by palehorse89

Not when I bring my best friend with me to the lot, maybe you know him? ........"Cashis King"?

know him/her well

baraff · 12-27-2014, 09:57 AM

Quote:

Originally Posted by palehorse89

Not when I bring my best friend with me to the lot, maybe you know him? ........"Cashis King"?

Maybe it's different in the RV world, but when I bought my new car with cash a few years ago they wouldn't budge on the price for a cash sale. With the instant financing dealers have at their hand these days, there is little incentive left for cash sales. They get their money just as fast.
Perhaps it's a bit different with RV sales, but I doubt it.

palehorse89 · 12-27-2014, 10:03 AM

Hi Burns, I agree, to some extent, the "upside" down comes from owing to much money for a long time on anything in the "Motorized" world............A home or land is about the only things that can gain if "over financed".........in time.
There are folks on here that have a 20-30 year loan on their Coach's!.....

flaggship1 · 12-27-2014, 10:04 AM

Quote:

Originally Posted by baraff

Maybe it's different in the RV world, but when I bought my new car with cash a few years ago they wouldn't budge on the price for a cash sale. With the instant financing dealers have at their hand these days, there is little incentive left for cash sales. They get their money just as fast.
Perhaps it's a bit different with RV sales, but I doubt it.

I suspect there is some difference - for instance - new RVs often sell 20 to 25% off the MSRP sticker. I did not find anything close to that possible in buy new CR-V in September or shopping Jeeps - GMC and other 4 down toads. Cash is King in the used market for RVs - but when folks are under water - they can't sell at cash offer without bringing their own money to the table on the way out the door.

deandec · 12-27-2014, 12:16 PM

My opinion is that NADA prices on 20 year old rigs do not reflect issues of condition of the vehicle and its true value.

At NADA values for my current rig ($13,700), there is not another motor home made (Prevost or Bounder) that I would take that price on sale and apply it to a newer rig to obtain its possible additional features.