Question Does an online RV forum cause you to buy more often?

[Neal]

We buy cars and I would venture to guess we keep them longer than what I read on forums like this of people rotating RV's for something different. I keep my cars probably 10-15 years. I know some I've met in the past rotated cars such as corvettes every two years. But it seems to me that people rotate RV's faster than cars. Why is this?

Do you think this is from you reading forums like this and seeing others trading up after 2-3 years? (be honest!!) Are you not making the right decision the first time and learning from it to make a better decision next time (floor plan?). Are you newing up because of problems with the former that you want to just start over with a fresh start?

Just curious as I see a lot more turnover in RV's than cars, in my small world at least. What are your observations and/or answers to the above or add reasons if something I didn't list.

RVForums.com is not responsible for your financial decisions.

 

[Akdare]

Just my personal experience...I too, keep my cars a really long time. I got a new Mini Cooper Clubman in 2018. It replaced a 2008 Mini Cooper; that replaced a 1994 Volvo 850. We just replaced my DW’s 2013 Chevy Avalanche with a 2020 Jeep Gladiator (so happy she wanted something that could be flat towed easily).

The motorhome...we have a 2018, and have a 2020 NADP on order. When we bought the 2018, I didn’t really want to spend the upfront $$$ on a DP as it was our first coach, and we wanted to make sure we liked traveling/camping with it. Also, we wanted a shorter coach for maneuverability, and for getting into national/state parks. Enter the 35’ NADP with the bigger engine. I now have 2 years of experience driving, servicing and modding a coach, and know what I like and don’t like in a coach. The ability to add specials to fine tune it to our needs was the icing on the cake.

One final thought about trading sooner. I financed both coaches. I make far more with my investments than the interest rate, plus, the interest is tax deductible as a second home. Automobile loan interest is not tax deductible.

 

[TJ&LadyDi]

One final thought about trading sooner. I financed both coaches. I make far more with my investments than the interest rate, plus, the interest is tax deductible as a second home. Automobile loan interest is not tax deductible.

One caution about comparing tax deductibility to investment income; interest deductions on home mortgages are not dollar-for-dollar tax savings. We walked through this scenario with our CPA/tax advisor and financial advisor, and found that at current rates, we would get about $0.35 per dollar of interest paid in savings on taxes. The other $0.65 in interest paid would be an unreimbursed cost. YMMV

TJ

 

[Akdare]

I’m a retired Certified Financial Planner/Financial advisor. The real comparison is between the interest rate on the coach loan, and the rate of return on your investments. No need to cash out $3-400k to pay cash when that same money can be making more than the loan interest. And, yes Jim, you’re correct; it’s only a tax deduction, not a tax credit.

 

[TJ&LadyDi]

Didn't mean to be preaching to the choir.

TJ

 

[Stuart W]

It really helps if you live in a sales tax friendly state that only charges sales tax on the difference in value. Here in the increasingly more lovely state of California we pay sales tax at almost 10% on the entire purchase every time. So on a Dutch Star your looking at north of $30,000 sales to each time. That combined with loan payments paid and depreciation it’s better then $100,000 to upgrade in 12-24 months.

 

[Neal]

Seemingly some here are in denial of owning up to the topic of this thread and instead want to feel better about financial chat. Jus'sayin...

 

[TJ&LadyDi]

Really, Neal? Who might that be?

 

[Stuart W]

No I’m not in denial ? isn’t going to happen again until we change states

 

[deaton]

Do you think this is from you reading forums like this and seeing others trading up after 2-3 years?

Yes, and it’s all the fault of @Neal.

 

[deaton]

We just replaced my DW’s 2013 Chevy Avalanche with a 2020 Jeep Gladiator (so happy she wanted something that could be flat towed easily.

@Akdare

Off topic, but once you have some experience with the Gladiator, I’d appreciate some feedback on the pros and cons. We will likely be replacing our toad next year and that one is on our list.

 

[Akdare]

I‘ll write up something when we’re back from Nappanee...only have towed it once with the current motorhome, did great. I did get to drive it for an extended period when we went to New Braunfels (small world) to pick up a large piece of equipment my wife bought. Drove & handled great; love the size. Small enough to handle well & park easily, yet this woodworker can haul a 4 x 8 sheet of plywood when I need to.

 

[Joe Hogan]

There is a case to be made regarding trading a RV on a more frequent 2 or 3 year schedule. Once a RV reaches 5 years old the deprecation curve flattens. The difference in price between an 8 year old and a 10 year old RV is condition not age.

If you flip a RV every two or three years, not necessarily every two or three model years, and buy 'Right' you can spend less than you might think. Once you hit 5 years, you might as well hold on to it until it no longer fits your use.

The other determining factor is transaction cost. If you live in a 10+% sales tax area or high initial registration tax state, the math changes for the worse. If you are registered in Montana, it is easier to flip than if you register in Florida. The drag of transaction cost makes flipping very expensive. If you can trade in to offset the sales tax, the math improves some.

My practise over the years is to hold on to a vehicle until it no longer fits my needs. Rarely do we change vehicles before 100K miles. We have held several vehicles to 200K. Currently my wife drives a 2005 VW Passat with 130k. This vehicle was purchased new in 2005. We are only now considering selling it. VWs are notorious maintenance hogs, but if you keep them maintained they will run reliably for a very long time. Good old German engineering.

The RV is the same. Until it no longer fits our purpose, we will continue to use it. Over our last cross country trip we found the CanyonStar to be a very good fit for our purposes. From 9000' to -261', 97F to 10F, over 6,000 miles, the RV operated well.
Not sure a DP would fit as well. Would a DP be more comfortable, undoubtedly. Would I learn to squeeze a DP in the spots I can get the CS, clearly. Would 450-500-600 HP be welcome, yes.

 

[Neal]

If I could bring myself to by used it would make a big difference. The deals are amazing if you can stand to not buy new and I am admittedly one that typically buys new.

 

[TJ&LadyDi]

My practise over the years is to hold on to a vehicle until it no longer fits my needs. <snip> The RV is the same. Until it no longer fits our purpose, we will continue to use it.

We're with Joe!

TJ

 

[deaton]

I think many of you may have heard that old saw about how an RV’er gets a new rig on average every four years or so.

Well the DW and I have a good friend who is partly responsible for getting us into RV’ing. A few years ago, I made that claim and he vehemently denied it. “That can’t be true!” he claimed. So I preceded to remind him of the five coaches he had acquired and disposed of in the past fifteen years, after which, he sheepishly acknowledged the average may be correct.

We bought our first coach in 2007. Number four is on order.

(2020 - 2007) = 13 / 4 = 3.25

I guess we’re beating the average.


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