I have a 2010 Class A, and I just ran the numbers to see the current value, and I have a question about future years. Is there any general rule for depreciation in the early years of an RV. From my quick numbers the depreciation looks like it follows what I had in mind for a car, 50% value after 2 years. What can I expect after 3, 4, or 5 years for a RV? I know there is a lot of variables but looking for a general feel for what I can expect down the road.
well, back in 2000 we bought a new Itasca Suncruiser 35U, dual slide, ford F53 chassis. list price was about $104,350. as near as i can figure it's now worth about $30K. that's an average between the NADA guide and actual *asking* prices i've seen. but that's also a rough number. depending on your market conditions a dealer may (likely will since they need to make a profit) give you less in trade but an eager buyer may give you more in a private sale. but ours has long been paid for and that is priceless.
rich, n9dko www.bananaboatbytes.com
I know a guy who's addicted to brake fulid. He says he can stop anytime.
2000 Itasca Suncruiser 35U
'46 Willys CJ2A
'03 Jeep Wrangler TJ
'10 Jeep Liberty KK
That is a very difficult question to answer becuase the list prices are very inflated when compared to cost. Roughly a unit that lists for $200k is costing the dealer between $130k and $140k. If we go back to your example of the Itasca with a list of $104,000, the cost to the dealer would be about $67,000. That unit is now 12 years old and if the price is $30,000, it averages out to depreciation of a little more than $3,000 per year from the dealer's cost, but double that from the list price.
Also higher end ones seem to hold their valve more.
That's another good point. Some brands don't hold their value well and others do very well at holding their value. If you have an orphan brand like Alfa, your resale will probably be lower than with an Entegra or some other brand that appears to be solid and would appear to be around in the future. This is almost along the lines of "All generalities, including this one, are untrue!"
It seems to depend on variables, not the least of which is the state of the economy and the availability of RV's in the area you're trying to sell. After all, no matter the blue book value it's really only worth what people will pay for it or, fair market value. I have seen very similar units in different markets bring very different prices.
I got some numbers somewhere when we were looking for our coach. I had 18% for year 1, 10% for year 2, 7% for year 3, 6% for years 4 and 5, 5% for years 6 and 7, 4% for years 8 and 9, 3% for year 10 and 2% for years 11 and 12.
Some make the mistake of taking those percentages off the LIST PRICE. WRONG. You depreciate from 25% off the list and then the depreciation. Otherwise a unit would show a higher value at the end of year one than what you originally paid. But in the end a unit is only worth what someone is willing to pay. Not NADA, not your upside down balance or some fairy tale number. Even the price of fuel will affect the value.