Retiring soon and have been looking at new fivers. Our purchase budget for a new trailer will be in the range of 25K to 30K. Budget also allows us to put 5K to 6K as a down payment. We would like to avoid being upside down on the loan should we decide to move up to a larger trailer in the next three or four years..or less. Here is my question....how quickly and how much do new fivers depreciate? With 5K down on a 30K trailer and after making payments for a couple or a few short years, can we come out flush, perhaps build some small equity, or stand to take a loss. We could wait and save more money but, we are anxious to get on the road....and join you all! Thanks for your input.
I should add that I don't have enough TV to go too big to begin with. We're looking at fivers with GVWR around 9,500 to 10,200lbs. We have found new Jayco and Keystones within that weight rating and in the $25K to $30K new price range. We have to start out modestly. We are not ruling out used as well but would like to get some input on how new fivers depreciate. Thanks.
I've sold 3 cars that I bought new for MORE than I paid for them over the past few years. That will never happen on any RV. You drive it off the lot and immediately take a depreciation of 25-30%.
That's why someone who is new to the RV world, or not sure if it's right for them should almost always shop for a good used unit. Start by going to RVTrader.com. enter how much you want to pay, and what kind of RV you are interested in, what State..and you'll find many, many choices!
Even choosing a fiver has many criteria...do you want a ligher unit, full timing RV, well insulated for 3 or 4 season use, where will you be camping...this determines how long of a 5er you should ger...as some National Parks limit size. Low profile or High?
And feel free to pick our brains for any questions you have. Good luck!
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unfortunately imo living in Indiana with all the rv wholesalers will always make your trailer unattractive. With myself on the east coast of Canada I can drive to where you are and get a wholesale unit and sell it here in 2 years for the same as what I paid for it.2 year old units here are selling for more than a new unit in Indiana. The terms come out flush and equity are words that don't describe an RV loan. Taking a loss is the only term. The second you sign the papers you have lost a few thousand.
buy used if you plan on trading in a short time or take your time and research the options and floorplans and get the trailer that you want to keep forever.
We could wait and save more money but, we are anxious to get on the road! Thanks for your input.
Congratulations on your upcoming retirement. My DW retired 2 years ago and I have 1 year and 8 months to go. Hopefully we'll be joining you out there on the road in the future.
As others have said, buying used is one way to save some initial cash outlay. But since you asked for opinions, here's mine.
Take your time, study all of the floor plans, read all you can regarding the manufacturers and models you're interested in, subscribe to as many RV magazines as posible and READ THEM, attend as many RV show's as possible in and out of your area, buy a notebook and keep notes of anything and everything you see, then get out there and kick some tires on the sales lot's. MOST OF ALL...DO NOT GET IN A HURRY!!! The search to narrow down your selection could take a year or more; it alway's seemed to take closer to 2 years for us. RV's, like boats, are not an investment, they're a financial liability that start depreciating the day you drive or pull'em off the lot. We love our 5'er & boat but sound financial investments they were not!!! It's the price we pay to have fun. The goal is to reduce the amount of depreciation you have to absord. Take the time to buy the CORRECT 5'er for your needs and likes and you won't have to sell it and buy another anytime soon. Rushing into an RV purchase can be a financially devastating decision.
I'm a fan of buying new RV's when possible unless you're intimately familiar with the unit you're buying or you have a thorough knowledge of what to look for in a used RV. I've seen the way some people neglect and mistreat their RV's and although they can still look good on the outside, most used RV's I wouldn't touch if they were being given away. With a new RV you know how it's been cared for from day one and you have a warranty. JMHO.
For the price range you're looking at spending, the manufacturers MSRP will be in the range of around $47K to $50K. A manufacturers MSRP, or list price, on a 5'er in the price range you're interested in less 35% buyers discount (essentially you're paying near wholesale price) that anyone can get, will net yourself a 5'er of about $30K cash outlay. Deduct another $5K for your down payment (and pay the sales tax outright in addition to your down payment, don't finance the sales tax) and you'll be looking to finance approximately $25K for a 5'er that lists for approximately $47K to $50K. You can get quite a bit of 5'er in the weight and price range you're talking about for a list price of $47K to $50K.
Where you'll benefit IMHO by buying new vs. used is you're only looking to finance roughly $25K for your new 5'er. Finance that for 5 years and you'll certainly be in a position in 5 years when your 5'er is paid for to either keep what you have if it's working for you or sell it outright for the retail price and buy your next 5'er near wholesale again.
The two key things to remember is to buy near wholesale price, finance for no more than 5 years, and pay the sales tax outright without rolling the tax into your RV loan. Only then will you be in a position to be able to afford to move up in 5 years to a newer larger unit or enjoy the paid off 5'er you have. We've only purchased 3 RV's in our lifetime so I don't claim to have all the answers. But we've always received between 35% & 38% off the manufacturers MSRP build sheet when we 've ordered our RV's and buying new has always worked for us. Good luck.
Another couple of things. Look at the pin weights on the fivers as well as the gvwr. We were looking online at them and even though our truck can tow a 14000 lb fiver, it's pin weight is around 2000 lbs. there are a lot less chooses of fivers with low pin weights than there are with higher pin weights.
Also, it will determine how you are paying on it. Are you financing it for 10 years? 20 years? The lower your payments,the longer it will take and more interest you will be paying. If doing say 10 years, you can expect to have only paid off a few thousand after a couple years. In 4-5 years, you might have reached 6000-7000 paid off. But the value of your trailer willbe less than what you started off with as well. You just gotta play around with the numbers.