September 2014
Volume 39 - Number 2


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Buyers Advocate
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Buyers Advocate Column
Depreciation VS Maintenance
Make Sure A New Coach is What You Really Want!

by Joe Bruno

2009 $140,000 Monarch Coach valued at $75,000

On any given day, I will see a few dozen "Brand New" Diesel Pushers that are the same model for sale online. In 2003-2006, production levels of high end Diesel Pushers was much higher than todays numbers. I can't seem to find more than a few of any one model year available online today.

Remember to keep your head when looking for your first "Luxury Coach" Just because it has a sticker price of $300,000 doesn't mean it will hold that value.


Click Illustration for Larger Image
2003 $440,000 Monaco Executive Valued at $135,000 and For Sale for $110,000

A coach that listed for $400,000 to $600,000 and was at the top end of what could be bought 9-12 years ago, have book values between $125,000 and $200,000 today. these values are very stable because the depreciation has slowed and for the past 4 years has been fluctuating up and down.

The coach shown in the photo was a $440,000 in 2002. by January 2009, the average retail value plummeted to about $140,000. Today is more than 5 years later and this same coach has an average retail of about $135,000. This coach, if purchased at Average Retail of $140,000 would have dropped $5,000 in value and had maintenance costs of $2,000 to $5,000 per year on average.

Case in Point:

If you had purchased a new motorhome that retailed for $140,000 in January of 2009, today it would have a used retail value of $75,000

So, When thinking about purchasing a coach, please consider the real cost, not the sticker price. An older coach will have higher maintenance costs, but still cost less per year to own and give a very high return of quality for your investment.

You can compare this scenario to buying a 12 year old German Luxury Sedan for the same price as a brand new Korean sedan! 5 years from now, the new car (5 years old) will be worth much less than the Luxury car (17 Years Old)

If you would like assistance in making the best decision on purchasing a Luxury Motorhome (New or Pre-owned) at a fair price and most suitable for your needs, Please Call Me at 888-334-8216

 

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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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