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RV_Lee 05-24-2022 12:09 AM

I am pretty sure the phrase "you can't take it with you" plays a large part. If you're in your 60's and sitting on a few million, why not? I would. It wouldn't be a 40-45' behemoth though, probably 35' max and ideally 30-32' so I can have some privacy and not neighbors on both sides.

Tha_Rooster 05-24-2022 05:20 AM

Quote:

Originally Posted by Ray,IN (Post 6189449)
I was watching a video several years ago of a couple who ordered a new Newell and paid cash. Those are near $2 million dollars.:anyone:



Sure some people can pay cash but we are talking about your average people who live pay check to pay check. Iím sure if you go to your local Rv sales place and ask how many people pay cash they would laugh.

Tha_Rooster 05-24-2022 05:24 AM

Quote:

Originally Posted by jacwjames (Post 6189161)
Didn't buy a $650K motorhome but built our house with cash which is worth at least that much.



And you know what, 10 years from now my house will probably be worth +$800K (or more) and the motorhome will be worth substantially less.



I sure hope so but I think we are going to have another housing collapse. Housing has gone threw the roof and peoples income not keeping up.

Cumminsfan 05-24-2022 08:44 AM

One thing for certain, my house will be worth more than it is now in 10 years. In the 32 years that I've owned it, it has never dropped below the price I paid for it. In fact it's gone up in value by over $340K.

Another thing for certain is after 10 years almost every RV will be worth less than half of what you paid for it.

IndyJim 05-24-2022 09:00 AM

If I understand this thread correctly:
1) Some people have more discretionary income than others.
2) Most people have differing opinions on how they spend their money.
3) Death and taxes are a certainty.

-IndyJim

Kid Gloves 05-24-2022 09:20 AM

Quote:

Originally Posted by Cumminsfan (Post 6191880)
One thing for certain, my house will be worth more than it is now in 10 years. In the 32 years that I've owned it, it has never dropped below the price I paid for it. In fact it's gone up in value by over $340K.

Another thing for certain is after 10 years almost every RV will be worth less than half of what you paid for it.

Nothing is certain except death and taxes. We could probably get today, what we paid for our coach nearly 6 years ago. That could change and it certainly isn’t why we bought the coach. For many an RV is an extravagance. It’s something you buy for fun, when you’re not concerned about putting the kids through college, making a mortgage payment or putting food on the table. It’s something to be paid for with discretionary income, a surplus of savings or some other source of mad money. For some that might be $25K, for others it could be $1.5M. Who cares?

Increased home values is largely irrelevant to the topic. Since it invariably pops up in every conversation about buying an RV, let’s take a moment to think about what happens when our home doubles in value. Every other home in the area doubles in value as well. So, while it might be comforting to say something such as “ My home went from $400K to $800K in the past 10 years”, we need to realize that it will now cost $800K to buy the same or similar home in the same area. Sure, we can pocket some cash and look like a genius if we downsize or relocate to a market with lower housing costs.

As for the “you can’t take it with you” logic. There is a certain amount of risk involved unless you happen to know your exact date of death and manage to leave just enough money for someone to shovel a pile of dirt on a pine box.

On edit: I see IndyJim beat me to the punch.

jimcumminsw 05-24-2022 10:39 AM

Quote:

Originally Posted by Kid Gloves (Post 6191932)
As for the ďyou canít take it with youĒ logic. There is a certain amount of risk involved unless you happen to know your exact date of death and manage to leave just enough money for someone to shovel a pile of dirt on a pine box.

I worked with an engineer who put together an EXCEL spread sheet for retirement. Using the insurance actuarial tables plus his pension and SS benefits, he planned out to spend all of his savings by 85 years of age. He missed this by one year and passed away at 84.

He planned on letting the state take care of him after he turned 85. He said by than he let the state support him, instead of him supporting the state.

If you spend all of your savings than the state can't take your money to support you. For long term health care.

Kid Gloves 05-24-2022 12:12 PM

Quote:

Originally Posted by jimcumminsw (Post 6192006)
I worked with an engineer who put together an EXCEL spread sheet for retirement. Using the insurance actuarial tables plus his pension and SS benefits, he planned out to spend all of his savings by 85 years of age. He missed this by one year and passed away at 84.

He planned on letting the state take care of him after he turned 85. He said by than he let the state support him, instead of him supporting the state.

If you spend all of your savings than the state can't take your money to support you. For long term health care.

When it comes to financials, Iíll take a fiduciary with a spreadsheet over an engineer with a spreadsheet every time.

Thatís a wonderful story. My goal is to not go out as a ward of the state. Iíve seen that plan in action. Having my own funds will allow me to choose how my care is provided. Thatís more important to me than getting back at the state and having someone else determine how Iím cared for.

Ray,IN 05-24-2022 10:07 PM

Quote:

Originally Posted by Tha_Rooster (Post 6191701)
Sure some people can pay cash but we are talking about your average people who live pay check to pay check. Iím sure if you go to your local Rv sales place and ask how many people pay cash they would laugh.


Therein lies the problem, living above ones means. Thirty year's ago only the (what I consider) rich drove DP MH's, now some folks are driving a new DP MH that cost more than their house and land is worth.

Kid Gloves 05-25-2022 08:12 AM

Quote:

Originally Posted by Ray,IN (Post 6192771)
Therein lies the problem, living above ones means. Thirty year's ago only the (what I consider) rich drove DP MH's, now some folks are driving a new DP MH that cost more than their house and land is worth.

Some folks are driving coaches and have no house or land at all. While there are certainly a number of folks who live above their pay grade, how many people do you actually know who donít have the income and/or assets to swing a loan for a $650K+ coach?

Thereís a clear misconception here if anyone thinks the average stiff is going out and buying a half million dollar coach.

Cumminsfan 05-25-2022 09:19 AM

Quote:

Originally Posted by Kid Gloves (Post 6191932)
Nothing is certain except death and taxes. We could probably get today, what we paid for our coach nearly 6 years ago. That could change and it certainly isnít why we bought the coach. For many an RV is an extravagance. Itís something you buy for fun, when youíre not concerned about putting the kids through college, making a mortgage payment or putting food on the table. Itís something to be paid for with discretionary income, a surplus of savings or some other source of mad money. For some that might be $25K, for others it could be $1.5M. Who cares?

Increased home values is largely irrelevant to the topic. Since it invariably pops up in every conversation about buying an RV, letís take a moment to think about what happens when our home doubles in value. Every other home in the area doubles in value as well. So, while it might be comforting to say something such as ď My home went from $400K to $800K in the past 10 yearsĒ, we need to realize that it will now cost $800K to buy the same or similar home in the same area. Sure, we can pocket some cash and look like a genius if we downsize or relocate to a market with lower housing costs.

As for the ďyou canít take it with youĒ logic. There is a certain amount of risk involved unless you happen to know your exact date of death and manage to leave just enough money for someone to shovel a pile of dirt on a pine box.

On edit: I see IndyJim beat me to the punch.

Check back in 4 years and let us know how much your RV is worth.

Kid Gloves 05-25-2022 09:55 AM

Quote:

Originally Posted by Cumminsfan (Post 6193129)
Check back in 4 years and let us know how much your RV is worth.

In our case, it is of absolutely no concern what value anyone puts on the coach, now or at some point in the future. It was paid for with mad money and it will have no impact on our financial situation if we sell it for $5.00 when weíre done enjoying it. We didnít buy it because of what we though it might be worth some day.

wnytaxman 05-25-2022 10:25 AM

The sticker shock is felt pretty much throughout the RV industry. There are a lot of factors involved from the additions made to what used to entry level coaches to the flood of electronics that seem to be on every motorhome out there. Adding to the change in pricing you have the consolidation of the industry with just a few companies owning all of the manufacturers and the consolidations of the small dealers into mega dealers and then couple those factors with a huge increase in demand.

I can give you a pretty good example of the extent of sticker shock. We bought our coach new in ‘18. It listed for $440,000. Our discount was about 38% which was a good number then but not out of reason. Today that same coach, a ‘23 model, is listed for $622,000 and you would have to work to get 25% off the MSRP. Bottom line is that the out the door price on that coach has jumped by almost $200,000 in five years which, by the way, doesn’t count the additional sales tax on that increase.

For those that say the RV asset is a rapidly depreciating asset, be aware that is not necessarily so in today’s market. We sold ours for close to what we paid for it new five model years ago. We certainly didn’t rip off the buyers but got what was fair value considering the cost of a new coach. You might be surprised what your used RV is worth in today’s market. Now how much longer that market will last is another issue with $6 diesel and 5% and more interest on a purchase. My guess is that the shelf life of the RV boom is rapidly approaching its end.

For those who are banking on their homes continuing to increase in value. You may want to hark back to Florida in 2007 and 2008. There are a lot of half million dollar homes that suddenly were worth less than half when it came time to sell. Whether it be sticks and bricks or motorhomes and RV’s, both markets are fluid and subject to changes quickly by outside factors.

Kid Gloves 05-25-2022 02:51 PM

Quote:

Originally Posted by wnytaxman (Post 6193226)
The sticker shock is felt pretty much throughout the RV industry. There are a lot of factors involved from the additions made to what used to entry level coaches to the flood of electronics that seem to be on every motorhome out there. Adding to the change in pricing you have the consolidation of the industry with just a few companies owning all of the manufacturers and the consolidations of the small dealers into mega dealers and then couple those factors with a huge increase in demand.

I can give you a pretty good example of the extent of sticker shock. We bought our coach new in Ď18. It listed for $440,000. Our discount was about 38% which was a good number then but not out of reason. Today that same coach, a Ď23 model, is listed for $622,000 and you would have to work to get 25% off the MSRP. Bottom line is that the out the door price on that coach has jumped by almost $200,000 in five years which, by the way, doesnít count the additional sales tax on that increase.

For those that say the RV asset is a rapidly depreciating asset, be aware that is not necessarily so in todayís market. We sold ours for close to what we paid for it new five model years ago. We certainly didnít rip off the buyers but got what was fair value considering the cost of a new coach. You might be surprised what your used RV is worth in todayís market. Now how much longer that market will last is another issue with $6 diesel and 5% and more interest on a purchase. My guess is that the shelf life of the RV boom is rapidly approaching its end.

For those who are banking on their homes continuing to increase in value. You may want to hark back to Florida in 2007 and 2008. There are a lot of half million dollar homes that suddenly were worth less than half when it came time to sell. Whether it be sticks and bricks or motorhomes and RVís, both markets are fluid and subject to changes quickly by outside factors.

Good info. Of course, home prices fell significantly in other states as well.

Whatís interesting about your story of selling the coach, 5 years later, for the same price you paid, is that you could not buy, what you refer to as the ďsame coach, a Ď23 modelĒ with those proceeds. Obviously, a Ď23 is not truly the same as an Ď18.5. Surely there are even more gadgets that donít work properly on a Ď23 than there were on your 5 year old coach.

What you had was a 5 year old coach that carried a price that would have allowed you to buy a similar 5 year old coach. Itís like for like. You could say that you enjoyed the coach for all those years and got your money back when it was sold. Less any loan interest and sales tax. However, if you want to stay in the game, itíll cost an additional $200K to jump in a new rig. So, while that coach maintained itís original price, did it lose value?


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