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Motor home values

Yahoo Message Number: 16215
Just a note of interest on the depreciation of motor homes. Someone just stated that motor homes depreciate at the same rate, regardless of brand, etc.
The problem with reading NADA as a value guide is that they publish depreciation values, not actual values.
In the car business, to insure we were paying proper prices for trade-in's or when purchasing, we had to use market reports that are actual sales figures for specific vehicles.
Alas, to my knowledge there is no market report published for motor homes. Therefore, actual values are determined by the market. Quality brands always do better than price leaders. The purchase price is higher and they have farther to fall which makes the dollar loss higher.
This only serves to make the process more complicated. The fact remains that Country Coach and similar high-end coaches tend to hold their values better than the price leader diesel units.

One retired old Coot's opinion.

Larry
Intrigue
10762

Re: Motor home values

Reply #1 –
Yahoo Message Number: 16216
Quote from: LARRY A HANSON"
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Larry,

We appreciate input from one in the know. However, reading and re-reading your post I can't assimilate what you were saying in paragraph 3 and the apparent conflict with paragraph four. There is no market report ....therefore values are determined by the market.
While car actual sales numbers are determined by the market. While your post confused me a bit let me offer that we the public are all nuts to be led to the slaughter by the NADA. The list price of the new Intrigue is almost double what I paid one year ago for an 04 Intrigue. And, the NADA value for my 04 as opposed to about 75% of list of a new Intrigue is even worse. If there is any sense to what a dollar will buy in terms of REAL value it is not evident in the motor home market. In other words, NADA sets market, it does not reflect real product value. A computer somewhere in the deep dark recesses of NADA cranks out numbers and we glibly get led to the slaughter. BTW, in defense of my point of view, a couple of years ago I sold our personal vehicle (town car) for more than two grand over NADA retail book. My buyer wasn't dumb, he had shopped and recognized value for the buck. The town car obviously was pristine. There seems to be no cure for what NADA does to us and I sure don't have a solution. I will get led to the slaughter just like everyone else.

Lyle Wetherholt
04 Intrigue 11740

Quote
Just a note of interest on the depreciation of motor homes.
Someone just stated that motor homes depreciate at the same rate, regardless of brand, etc.

Quote
>

The problem with reading NADA as a value guide is that they publish
depreciation values, not actual values.

Quote
>

In the car business, to insure we were paying proper prices for
trade-in's or when purchasing, we had to use market reports that are actual sales figures for specific vehicles.

Quote
>

Alas, to my knowledge there is no market report published for motor
homes. Therefore, actual values are determined by the market. Quality brands always do better than price leaders. The purchase price is higher and they have farther to fall which makes the dollar loss higher.

Quote
>

This only serves to make the process more complicated. The fact
remains that Country Coach and similar high-end coaches tend to hold their values better than the price leader diesel units.

motor home values

Reply #2 –
Yahoo Message Number: 16222
Sorry about stirring up the water on values, but here is what I meant to say. (should have)
In this technology age we live in, automotive dealers can now access literally thousand of sales (wholesale) of specific vehicles via the internet.
As soon as one of the hundred of auto auctions closes it's books, it publishes the sales for the day. As an example, if you want to know what a 2002 Honda CRV with 28,000 miles is worth, you simply key in that vehicle and you will see the list of sales showing color, miles and an estimate of condition.
You then know exactly what you should be paying for one, whether buying it wholesale or taking it in as a trade.
It takes a lot of guess work out of establishing a market value for that specific vehicle.
As to motor homes, however, there is no such market report published, to my knowledge. I've been out of the business for a few years and it may have changed.
With motor homes, we have no where else to go other than NADA. They have some actuarial tables and depreciation charts that they have used for years. That's apparently all they want to work with.
In the past I have had more than one conversation with NADA personnel concerning market-vs-book. Apparently they are comfortable with what they publish and don't care to get into the market reporting business.
We can look at comparables on the web, but remember we only see asking prices, not actual sales figures.
I take some comfort in knowing that my 99 Intrigue, that had a MSRP of $245,000, has held it's value pretty well considering the rapid rate of depreciation in these beasts. One factor is the replacement cost nearly twice that much for a 2005 or 2006 model.

Larry
Intrigue
10762

Re: motor home values

Reply #3 –
Yahoo Message Number: 16223
I am likely the culprit who simulated this thread, with the statement that motorhome depreciation rates are independent of manufacturer, model, and even powerplant.

From the research I've done {the public link, a summary with links to more detailed posts is,

http://www.rv.net/forum/index.cfm/fuseaction/thread/tid/15272942.cfm},
it is apparent that there are too few Rvs sold each year for the NADA to determine 'actual' market values, as they do for cars. This, acutally, should not be surprising -- next time you're on an interstate count the cars you see in between RVs. As an apparent result of the relatively scarcity, the used RV values listed in the NADA Guide follow what appears to be a predetermined rate, regardless of manufacturer, model, or powerplant.

Now, I agree, these are values that are only published in a book or on-line; acutal market values may differ significantly. However, dealers offering trade in values, bankers, insurance agents and adjusters, and the like, will all use the NADA RV Guide to determine market value. Additionally, it is very difficult to find published values for RVs -- the only public source I'm aware of is the list published by PPL Motorhomes, which I regard as remarkable act for a company to do! (see post above for an anlaysis). Hence, IMHO, CC motorcoaches, as great as they ARE, are not likely to 'hold their value' any better than any other motorhome, whether it be a luxury DP or an entry gas-powered model.

Now please don't get me wrong: I'd be absolutely delighted to see evidence to the contrary!

CW (Bill) Davis
Chapel Hill, NC
1995 CC Intrigue