My parents want to buy a used RV for a sight seeing tour across the country. They looked at renting one and it would allegedly cost about $10k to rent for the distance/time they would want it.
So now they are looking at buying a used one for the trip and then selling afterwards thinking it won't depreciate the $10k it would cost to rent. I've got a few questions about RVs since neither them nor I have any clue about them.
- What does it take to get a Class A license? Written test, driving test, etc...?
- What are the financing options like? I've heard RVs can qualify as a "second home" which means they could finance for a longer term if they decided to keep it (say 15-20 years).
- What is the depreciation like on a 3rd hand RV? If they bought for say.... $50k, could they sell it for $48k after putting like 7-10k miles on it?
- I might buy it off them 3rd hand and throw a motorcycle hitch carrier and use that for race weekends. Any disadvantages to that that anyone can think of?
- Any other info that would be helpful?
I'll take a shot at these questions - we've owned RVs since 1978, everything from a micro-mini to travel trailer, cabover camper, fifth wheels, and a Class A:
1. Licensing: for motorhomes less than 40 feet in length your regular Class C license is good. Over 40 feet you should have an endorsement, but most people don't worry about that. If you go up to the maximum 45 foot length then you need a Non-Commercial Class B license, but again few people worry about that.
2. Financing: on new units you can get up to 30 year financing depending on your credit rating. Twenty years is common. On used units most dealers can arrange up to 20 years; for private sales it'll be whatever your lender wants to do. IRS rules state that you can deduct interest payments on a second home - if the motorhome has permanent eating, sleeping,, and pooping facilities then it qualifies as a second home. But if you already are deducting the interest on your cabin at the lake, then the motorhome doesn't qualify - you can only have one second home. But, if you've already paid off your home, or are renting instead of buying your home, then you're good.
3. Depreciation: Mostly it's just like a car (and expensive car!) - you take a big hit when you drive it off the lot. Once that first hit is done it'll depreciate depending on your location, the season, and the economy.
4. Carrying a bike: if you're looking at gas-powered rigs then you might be restricted. Up until about 2005 the manufacturers were installing Class III hitches, with a 350 lb tongue weight rating. After 2005 most went to a Class IV hitch which increased the tongue weight rating to 500 lbs. So, your bike AND carrier would have to weigh less than that ratin for you to be safe. It adds that weight way out at the rear of the frame, and reduces the weight on the front axle. You'll probably experience handling issues if you hang too much weight off the back. If you go with a diesel powered rig then most likely you'll find tongue weight ratings of 1000 lbs - they use a completely different chassis than the gas rigs, but they're generally higher priced both for new AND used units.
If you're wanting to look at different models, both new and used, a good place to start is See Grins down in Gilroy (behind the Outlets off of Leavesley). They carry many different manufacturers of new units, and have a large inventory of used units - both trade-ins and consignments. Their prices are good, and they provide a good "starter pack" of things you'll need. You can use their pricing to get an idea of what the unit will cost, but be aware that list prices generally include about a 35% margin so negotiating is possible.
For new units you'll be getting a Ford chassis, with their V10 engine and 5 speed transmission. For units from the '90s through the 2000's you have a choice of Ford with the V10, or Workhorse with the GM 8.1L V8 and Allison transmission. GM discontinued the 8.1L engine several years ago and Workhorse dropped out of the RV industry as a result, which is why Ford now has the market.
Sorry for the length of this - hope it helps!