rvquestions.net 40+ years Rving, 36 years in the RV Biz, 8 years full-time RVers all crammed into one page!

New or Used II

For today’s lesson I have enlisted the help of my two friends “Darryl and my other friend Darryl” (Wasn’t that a neat show?) As you know my name is Larry. In this skit I’m the RV salesperson, Darryl is going to buy a new coach, other Darryl is going to buy a similar motorhome, 5 years old, low miles, good condition. These 2 motorhomes actually exist but from here on in we are going to wing it a bit. there are just too many variables to be specific. I got the insurance quotes from the Wayfarer website.

Darryl buys his new 37′ triple slide gorgeous motorhome, gets a great deal and winds up only paying 149,900 plus tax (assuming 10%) for a total of about $165,000. He insures it for another $1800, heads out for his first trip.

Other Darryl also gets a really nice 37′ coach, only about 25,000 miles, 2 slides, all the right equipment. Other than the full body paint and the flat screen tv’s, not unlike Darryl’s. He writes a check for $77,000 including tax and another one for insurance, about $950. There he goes for his first trip now, right behind Darryl.

They both travel the same highways, stay in the same parks (side by side), visit the same happy hours, even drink the same brand of beer. Life is good!

5 years go by and both Darryl and other Darryl decide it’s time to hang up their keys.

Darryl sells his 5 year old triple slide coach in great shape and gets exactly what NADA says he will. $75,000.

On exactly the same day other Darryl looks at NADA and sells now 10 year old, well looked after, in great shape coach for $40,000. Mathematician that he is, using nothing more than his fingers other Darryl adds it all up. He bought it for 77,000, insured it for 5 years at $950 per year and averaged about $2,000 per year for maintenance. His 5 years of seeing the world including the purchase price, taxes, insurance and maintenance adds up to about $94,000 less the $40,000 he gets for his coach equals 54,000 or about $11,000 per year. Worth every penny!

Darryl gets out his calculator to see how he made out: Including tax the first check was $165,000, then insurance, and maintenance times 5 years (less because he started with full warranty new) $9,000 and $6,000 comes to about $180,000 less 75,000 equals $105,000 or about $21,000 a year. Great Value!

DARRYL

OTHER DARRYL

Purchase Price

150,000

70,000

Tax (10%)

15,000

7,000

Insurance ( 5Years)

9,000

5,000

Maintenance (5 Years)

6,000

12,000

TOTAL

180,000

94,000

Less Selling Price

-75,000

-40,000

105,000

54,000

Cost per year (Divide by 5)

21,000

11,000

Remember I’ve been watching this skit for close to 30 years and I can tell you that when its all done both Darryl’s will be equally happy. Both will have many fond memories and loads of friends they’ve met all over North America.

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