July 2014
Volume 39 - Number 12


Contents


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Buyers Advocate
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Buyers Advocate Column
Factoring in the De-Valuation Curve into Your Purchase Valuation
Comparing a 3 year old Luxury Coach to a 6 year old luxury coach

by Joe Bruno

2008 Newmar Essex

Ask yourself this question! Should I get a almost new motorhome or the same model older coach?

Every Buyer asks the same question, How much is it? or uses the same statement, I don't want to spend more than ?.

The true cost of a motorhome or any RV is the difference in what you purchased it for and what you sell it for. You can look at it in many different ways. My favorite way to gauge the cost of a unit is to take the total out of pocket expense and divide it by the months or years you own it.

If I purchase a 3 year old motorhome and own it for 5 years, I will ultimately own a 8 year old motorhome when I am selling it. What if I purchase a 6 Year old motorhome, What will the cost be to me for the same model.

Simple Calculation: *Calculations are based from the results of my research using average low prices a a guide for buying a motorhome.

2011 Newmar Essex at todays market price:$350,000 2008 Newmar Essex at todays Market Price $250,000

If I own the 2011 for 6 years, the value should drop to about $200,000 when it is 9 years old. The 2008 in 3 years should drop to about $200,000 also.

The annual cost for the 2011 will be $150,000 in devaluation divided by 6 or $25,000 per year or $150,000.

The annual cost of the 2008 will be $50,000 divided by 3 years or $16,700. In the end, you will own a 6 year old coach of the same quality. The difference is that you can save over $8,000 per year owning the older coach for less time.

If you are interested in learning more about this or would like assistance purchasing a coach like this or any other model, please contact me at 941-926-8335 for more information about how I can help save tens of thousands on your next Luxury motorhome purchase!


Click Illustration for Larger Image
2011 Newmar Essex

 

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About the Author


Click Illustration for Larger Image
Joe Bruno

Joe Bruno's situation is very rare. He has a financial planning and investment banking background followed by a tour with the most extreme RV lifestyle, Touring the US approximately 100,000 miles in 2 years with the "Ringling Brothers and Barnum & Bailey Circus Band" in three larger diesel motorhomes and a Jeep Liberty.

After his tour with the circus ended, he went to work for the dealer who sold him his current coach--Lazy Days RV Super Center. After more than a year of 75-hour-work weeks and little time with his family, Joe moved to another high-end RV dealer.

With the market collapsing and new motorhomes not selling. he decided to go on his own and share his experience and expertise with other RV buyers and established his present company: RV Buyers Advocate.



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