Understanding the Rules of Depreciation and Warranties

2003 Vision 29 (2)

I’m sure by now that you’ve been doing some shopping online and have a good idea of how much you’re going to pay for an RV, used and new. But knowing how much you’ll pay and knowing how much it’ll be worth later are two different things. Such research requires a bit of homework, or help from a professional. Here are two things to consider when purchasing an RV…

Depreciation:

An RV is really no different from a car. The moment that you drive it off the lot, its value depreciates. For any of us who own a vehicle, we know that brand new cars have a higher resale value. Cars that have already been through one owner before you have a significantly lower resale value. These resale values plunge faster in the RV industry than in any other. This means that you shouldn’t enter into an RV purchase lightly. Be sure you know exactly what you want in your RV, because trading it back in for an upgrade will hold a hefty penalty.

This shouldn’t deter you from a used RV investment, however, as many used RV’s last for a long time with owners who are quite pleased with their choice. Instead, this information should make you carefully consider whether a used RV or new RV will best suit your needs. If you’re uncertain, give us a call and we’ll help you determine what your desires and budget can procure for you.

Warranty:

Even if an RV is only a few months out of the factory, many manufacturers refuse to continue the warranty on for the second owner. If your seller insists that there was an extended warranty purchase, give the RV provider a call first to ensure that the warranty is transferable. If you ask, they may be willing to sell you an extended warranty as well for a moderate fee. Ensure that you have copies of the warranty purchase, however, so if something unforeseen pops up, you have proof. Never assume that just because your used RV is brand new, that it’s covered.

Using caution when you are purchasing a used RV will keep you out of a lot of trouble. Read our other posts on knowing how to look for water damage, and how to spot broken appliances to ensure that you are well prepared to go used RV hunting!

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