Yesterday, after reading a PR release outlining the costs of renting Recreational Vehicles (RVs) for vacations or lengthy travel, I had another of my hindsight-based “blinding glimpses of the obvious.”
During the COVID freak-out last year, I had (yet again) applied a long-term solution to what was a temporary problem.
With all the uncertainty over the pandemic, and amidst growing indications that travel was going to get difficult, if not impossible, I decided to take the plunge and buy a vehicle that would allow me to travel with very limited contact with others; an RV.
It was a significant expense, but one I thought essential to allow me to cover the industry and its events without having unnecessary contact with people. At that point, there were no real indications that everything for which I made this significant investment would be cancelled; sometimes twice.
When that happened, I found myself with a great mode of transportation and very little reason to travel. There were no events to attend.
Don’t get me wrong, I really like it. There’s nothing awful about a comfortable ride, “reasonable” economy (for a fuel-guzzling big vehicle) and the ability to bring anything I please without concerns about weight or other travel regulations.
It perfectly fits the bill for unencumbered, unhurried travel. It enabled me to get out and experience the real outdoors during the pandemic. Those trips reconnected me with the recreational aspects of the outdoors.
In the height of the pandemic’s travel shutdowns, I traveled more than two-thirds of the way across the country and back - safely.
Travel in an RV doesn’t really require much. Power, water and sewer hookups are nice, but not essential. “Boondocking” like this, really only requires space enough to put out slides and an awning. OWDN photo.
During the outbound part of my trip, I had minimal contact with others. Stopping only for fuel (I had my own food and bathroom onboard) represented the best travel option possible.
Surprisingly, I arrived in South Dakota energized, not drained from driving. There, I simply unfurled the awning, put out a couple of camp chairs, and enjoyed my time with friends. Outside in the open air.
On the way home, I didn’t use campgrounds, I “boondocked.” No campgrounds or external hookups needed. On the way out, I realized that traveling solo put considerably less demand on the RV’s self-contained sanitary facilities. So, no campground; no problem.
It was a great trip.
Every trip I took last year was enjoyable. Even when I had to visit the manufacturer to get a broken water heater repaired. I learned a lot about the manufacturing process - and my own unit.
Last week, I took the RV in for the annual checkup required to keep its “warranty for life” in force. The $200+ checkup turned up no issues, although I’ll need to have the membrane roof cleaned and reseal before too long. A job measured in “maintenance units.”
Dealers and service facilities use that term because they seem to believe it’s more palatable than saying “we’re going to charge you $155/hour (for an “estimated” five hours) to wash your roof and put some really expensive sealant on its seams.”
Fortunately, RV “maintenance units” don’t begin to approach “maintenance units” for airplanes or on-the-water boats.
Regardless, I’ve spent $1000 in preventative maintenance this year. Plus monthly storage, the loan repayment, and insurance charges that come along with owning an expensive vehicle.
And I’ve yet to spend a night in the RV. Consequently, my now-pristine RV hasn’t done much in 2022 except depreciate. All vehicles depreciate. Some depreciate faster than ice cubes on a July beach. Thankfully, the RV doesn’t fall like some other rides.
That’s why the summary of a new Go RV Rentals report was eye-opening.
According to Go RV Rentals’ 2022 RV Rental Price Index Report, rental RV prices range from $35/night (pop-up camper) to more than $725/night for a full-blown, Class-A motorhome.
A Class C motorhome, my business rig falls between those two extremes. Class C’s rentals range between $115 and $215/night. The report points out that’s a 3.6% increase over last year. Not really much of a bump when you consider the 8.5% inflation reflected in the Consumer Price Index.
That, however, doesn’t paint the full cost picture. Quoted rental rates are “dry rates” -they don’t include insurance, service charges, optional equipment or sales tax.
According to the report, a “full” nightly rate will likely add a minimum of fifty percent to those base prices. Meaning that $35/night popup is really closer to $54/night. The $725/night motor coach will run well over a thousand bucks when you’re all-in and done.
That’s without fuel.
And nothing demonstrates the true impact of $1/gallon (or more) fuel price hikes more vividly than an RV fuel gauge. They’re all thirsty.
The point? I violated television productions’ “3-Fs Rule.” It’s a simple rule to help you project the cost of video production: “If it flies, floats or films- don’t buy it, rent it.”
Learning the 3F rule transformed me from a stressed-out studio owner to a (comparatively) relaxed TV producer. I have no heartburn when renting top-end production gear. I “only pay for what I need” - someone else pays the rest of the time.
According to Go RV Rentals’ founder and online marketing director David Korofsky, “..new and used RV purchase prices have exceeded CPI lately. Yet, what many may find counter-intuitive is that RV rental rate growth has significantly lagged CPI”
With nearly all government restrictions on travel lifted, there’s less reason to need RVs for non-discretionary travel. Consequently, demand has softened.
With more units available than renters, pricing hasn’t risen to match purchase/resale hikes.
Today, the costs of renting RVs, even the most expensive ones, are a bargain when compared to the costs of ownership.
“Most RV owners only use theirs about 20 days per year,” Korosky explains, “so their rig sits idle about 345 days. All the while, the owner is making a monthly note payment, and/or suffering depreciation. Also, there is the cost burden of storage, insurance, property taxes, maintenance and repairs.”
Based on a hypothetical $80,000 Class C purchase, the cost for those 20 days of annual usage is $900/day. Compare that to the $325/day rental fee (including that 50% boost for “additional charges”) and you begin to see just how expensive RV ownership really is - if you aren’t using it at every opportunity.
To help offset ongoing costs, some RV owners put their units in rental fleets. Unfortunately, they’re either ignoring or unaware that IRS regulations say putting your unit into a rental fleet turns it into a business. Income is reportable and expenses need to be carefully documented. And your insurance likely wasn’t written to cover a “for hire” vehicle -or the added liability of others driving your rig.
When you rent any vehicle, your obligations end when you surrender the keys. Not if you own it. The purchase price- of any vehicle- is only your first hint at the cost of ownership.
I knew it going in -but only because I’ve learned with other far less practical vehicles. I still heartily recommend RVs for family recreation and reconnection. But I’m equally adamant that you should try before you buy.
If you’re interested, here’s a link to Go RV Rentals primer “Everything to Know About RV Rental Prices”- can’t vouch for the “everything” but it certainly gives you the numbers to quickly determine if an RV excursion -or two- makes sense for you.
We’ll keep you posted.
— JIm Shepherd
