Recreational Vehicles (RVs) offer the exciting possibility of camping, taking road trips, and discovering fascinating locales. An assortment of RVs is available for rent to fulfill your travel objectives. However, if you find yourself frequently utilizing an RV, ponder over owning one. Wondering about the funding required? Stay tuned for the details.
Owning an RV isn’t a minor investment, and it requires significant planning and careful consideration. Please read on to get a general understanding of the potential expense involved.
HOW MUCH DO YOU NEED TO PURCHASE AN RV?
RV costs have a high variability and could fall anywhere between $10,000 to $400,000. That indeed is a wide range! The reason being the vast number of RV types available in the market. You could procure a basic, pre-owned travel trailer within a range of $5,000 to $15,000.
On the other hand, if being up-to-date with the latest amenities is your expectation, then a brand-new, drivable RV will set you back by nearly as much as buying a house could. Some luxury RV owners, with a wealth of disposable income, invest lavishly into crafting their dream vehicle, as featured on TV.
Yet, as a first-time RV enthusiast, you might want to start small. Considering the factors below can guide you in making an informed choice and planning the requisite savings.
1. RV VARIETIES
Your preferred RV type will influence its price. Five essential RV types include Class A, Class B, Class C, travel trailers, and fifth wheels.
Class A – Resembling a bus, these deluxe RVs start at $100,000 and could possibly escalate to over $1 million.
Class B – Also popular as camper vans, these are more economical than Class A RVs, falling in the range from $50,000 to $150,000.
Class C – Mid-range RVs featuring a cab-over bed, their prices vary anywhere from $50,000 to over $200,000.
Travel Trailers – Towable varieties with pricing between $10,000 to $100,000.
Fifth Wheels – Another towable variant, bigger than travel trailers, pricing fluctuates between $30,000 to over $200,000.
2. NEW VS. USED RVs
While new RVs are pricey, they also suffer from higher depreciation, resulting in a more considerable loss during future resale. Conversely, used RVs are economical but might need additional expenditure for maintenance and repairs. Some even opt for renovation projects involving extensive remodeling. It is crucial to estimate the cost of work and new materials before embarking on such tasks and make sure they are cost-effective.
3. EXTRA COSTS
Budgeting for your RV should also account for additional costs like insurance, registration fees, and maintenance. Factor in the storage costs when the RV is idle, which could range from $50 to $300 monthly, depending upon the location and facilities.
4. FINANCING AN RV
In case you cannot afford to pay the entire amount upfront, you could explore financing options. Interests on RV loans usually fall between 4-7% and are affected by your credit score and loan period. Ensure a good or excellent credit score for loan approval and competitive interest rates. Also, set aside down payment funds to improve your loan terms.
5. DO’s and DON’Ts FOR RV PURCHASES
Remember the following pointers during your RV purchase. Define your requirements and stick to your budget. Start small and upgrade in the future. Rent an RV initially to gather experience. Understand as much as possible about different RVs before deciding. Always scrutinize the RV meticulously before purchase, ideally with a third-party expert. Obtain complete operational guidance from the seller and record it for future reference.
SUMMARY: FINANCIAL PREPARATION IS KEY TO BUYING AN RV
Unless you plan on investing a significant amount of work into the vehicle, expect the RV purchase to be on the expensive side. You want to be financially prepared for this investment, which could mean paying off existing debt, improving your credit, and boosting your savings. Dedicate ample time for research to analyze the various options and determine what suits your needs best.
RV ownership is a fulfilling experience that promises countless precious memories.
