By Chuck Woodbury
To start, here’s a very quick bit of fiction: John just bought a new car to travel to and from work. He paid $38,000 for it. His daily commute to and from his rural home is 85 miles. “It costs me a lot less to drive in my own car than take a taxi or Uber,” he says.
Bear with me for a minute: I will get to the point of the headline shortly.
The day after John picked up his new car, he drove to and from work. He loved it, especially the freedom to go where he wanted, when he wanted. No waiting for a taxi or Uber to show up. None of his neighbors commuted, so no luck with carpooling.
Then, at the end of three weeks, he parked the car in his garage, shut the door, locked it and left it there for the next 49 weeks. The following year, he did the same thing.
For those three weeks of driving to work, paying for gas and a parking space in town, John saved $20 a day over taking a taxi or Uber, his only realistic alternatives to driving. No bus or commuter train service was available.
And so…
And so it could be said that for John, “Driving was the most affordable way to commute,” just as the RV industry constantly boasts that RVing is the most affordable way to travel. If you only figure the costs of the three weeks the average RVer uses his rig each year RVing (the actual statistic is 20 days), yes, it can be a very affordable way to travel.
But wait! What about the additional, year-round cost of owning the RV when it’s not being used—licensing it, insuring it, and maintaining it for the other 49 weeks of the year, all the while watching it depreciate. Don’t you believe those costs should be included in the cost of a vacation? The RV industry doesn’t.
I have observed many times about how the RV industry lies with statistics with its annual press release that RVing is the most affordable way to travel. I asked the PR person in charge of delivering that message about camping with a tent. Wouldn’t that be more affordable? “Oh, that’s not comparable,” she said. Not comparable? How can camping with a tent not be comparable?
I asked her how the RV Industry Association could boast that RVing with a Class A motorhome was more affordable than other forms of travel. I asked “What other forms of travel?” She said the costs in the study were compared to “flying by first class and staying in a luxury hotel.” Now, I ask all you Class A owners, do you fly first class and stay in luxury hotels when not traveling with your RV? Come on! This message from the RV industry is 100% stinky cow poo.
And never does the industry remind you that a three-week vacation staying in a hotel, or cabin at a campground, or taking a cruise, only costs you money when you are actually on the trip. With the RV, there’s the rest of year of RV ownership, and in many cases, finance payments that stretch to 20 years. (Let’s see. That’s about a quarter of an average person’s life.)
So, how to save half on your RVing expenses
It so simple. Split the cost of buying a new RV with a friend or relative. Share the expenses. If either of you want to use the RV three weeks, or even two months, there will be plenty of time for each to use it by shuffling schedules. Or buy the RV with two other parties and cut your expenses by two-thirds.
Think of it like a timeshare. It’s common with private pilots who share a plane. Flying clubs often have dozens of members who share the cost of a single aircraft.
Yes, RVs are a very personal thing
I realize that an RV is a very personal thing; we love to modify our RVs just the way we want, and decorate them just the way we want, and stock them with our favorite stuff. But is it worth the huge expense of maintaining our RV just for ourselves when it’s sitting most of the year in our back yard or at a storage facility? Invest the money you spend on that RV sitting idle into your kids’ or grandkids’ college fund or your own retirement.
Options to cutting your cost of ownership, of course, are to make your RV available to rent through Outdoorsy or RV Share. You can make a profit on your RV each year doing that, and still have plenty of opportunities to use it yourself. Or, why not just rent an RV for a few weeks a year and not deal with the costs of ownership?
If you only use your RV three weeks a year, or even twice that, and then store it, you’re likely not being financially wise. Any CPA will tell you that. On the other hand, if you have lots of money, then enjoy the luxury of the RV without worry about finances. You worked hard. You can afford it. Good for you. But for others less fortunate, an RV can be a financial black hole.
If you never read my article about the perils of financing an RV for 15 or 20 years, you might want to check it out.
Please leave a comment.
P.S. If you appreciate our honest journalism (whether you agree or not with this particular essay), please consider subscribing to RVtravel.com. Virtually no other RV publication, online or in print, dares publish articles like this on important matters that may not please the RV industry, whose mission is to serve the industry, not RVers themselves. Subscribe once or on a monthly basis, and you’ll help ensure we can continue with our mission to inform, not cheerlead. As a subscriber, you will receive the paid ad-free edition of this newsletter with its special features. Your subscription will remain current unless you choose otherwise. No renewal notices are mailed.
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Get out and use the RV. They make lousy lawn ornaments.
Don’t forget to include the loss of investment gains on the money you invest into an RV. I was surprised when our dealer made sure we understood the less obvious costs of owning an RV like storage, registrations, insurance, maintenance, the cost of all of the ‘stuff’ needed to outfit an RV, expect less than 10 mpg, and so on. He told us that it makes no sense to buy an RV if you cannot afford to enjoy it. Not many dealers will tell you that.
Wow! An honest dealer! Good for him. He’s a keeper.
We never considered buying an RV before retirement to use 3 weeks a year. Only after retirement did we buy our 5th wheel that we use about 5 – 6 months/year.
The least expensive vacation/travel option was never considered as I wanted to travel in my own “home”. Is it cheaper than staying in hotels? Probably not, but again cost was not my main concern, lifestyle was.
Another factor to consider when buying an RV outright is the “lost opportunity cost”. The money that you used to buy an RV could generate 6-9% if invested in a balanced portfolio, so I needed to add $6,000 to our yearly expenses in addition to R&M, fuel, park fees, etc.
Worth it? You bet!
Bought our first RV in 1974 and are now on our 3rd last RV. Just can’t seem to get away from it. Since we no longer full time, our rule of thumb is to have it on the road at least once a month…or not worth letting it sit and pay all the extras.
You’re absolutely right about the RVIA’s misleading and downright false propaganda about vacation costs. As a former DoD cost analyst, the first time I saw that claim, I knew it couldn’t be true. It’s just completely unethical that they continue to lie to their customers year after year. It’s a crying shame that, apparently, the lies continue to work on their gullible customer base.
As for sharing my RV, I understand the idea, but there is absolutely no way I would ever do that. We’ve invested too much time, effort and money including massive modification to make it absolutely perfect for us. I would have never bought it if I couldn’t afford the total cost of ownership.
I would rather stay in a hotel than share my RV with somebody else. Eeewh, gross!
Thank you, Chuck! 🙂 I have given passing thought to renting our RV, but my concern is how it will affect our insurance. Similarly, if we buy an extended service contract, how would renting our RV affect it? Would it void the service contract? I do like the idea of buying an RV with a friend. Unfortunately, I haven’t any nearby friends who RV. However, at its core, this is a great idea. Thank you for sharing it! Have a great day and SAFE travels! 🙂
This is the logic that prevented our household from getting an RV decades ago; we thought we could buy a lot of motel nights for the cost of an RV. In reality, we didn’t take very many of those trips, and as we accumulated pets, stopped traveling much at all.
We would have done better to comb our neck of the woods for a small and affordable used RV, and carefully planned several outings a year. It would have given us a lot of great times and a better quality of life.
Well he passed on, and then I got an RV. My biggest regret is we fell for the motels-are-cheaper bull when we were young.
There are lots of people who can advise you on the most frugal way to live, but there is more to living than its cost. I have always felt that when the time comes to look back on my life I will think about the things I did, not how much it cost.
True enough. But a lot of things you remember you did cost and you had to think about economics at the time. I’ve always enjoyed getting the best value for the least amount, so being frugal brings me joy. I only wish the government felt the same way.
Renting out your RV doesn’t reduce expenses, it increases them. A lot.
You’re not there to fix the simple stuff so any issue that spooks your renter is a repair bill to you. You understand the perils of condensation and the consequences of improper and/or overloading, your renter doesn’t. You know how to reset the convertor or hot water heater, your renter doesn’t.
Renting *might* increase revenue so if you’re okay with renting something when it’s vacant, rent your house.
It doesn’t move, is in higher demand, less likely to get stolen, more tolerant to abuse and has better odds for not accidentally striking a low overpass……..
One thing regarding RV travel versus car/motel was not discussed. If one’s only home is an RV, then might not traveling via RV be somewhat cheaper than via car/motel? Whether one is traveling or not, RV ownership costs stay basically the same. One major difference is the cost of fuel and other “wear and tear” costs. Any thoughts, anyone?
its mid june, and we’ve already used our camp trailer 17 or 18 weeks this year (sure, that 4 month Mexico caravan tour Jan-Apr started us off with a bang). We bought this trailer (barely) used 8 years ago. being a trailer means the only ‘mechanical’ maintenance is tires, brakes, and wheel bearings. We boondock far more than we stay in $$$ RV parks.
Will this is a moot point. Nobody here buys an RV to use 3 weeks a year. Whether you pay cash or finance (better to buy used and pay cash) we buy them to enjoy the lifestyle. Do you really think anybody here needs reminding of the daily and annual costs involved? As for renting it out while we’re not using it, are you kidding me? If you want or need to cut costs then learn how to boondock, install (yourself) some upgraded solar and batteries and enjoy the gorgeous scenery and not paying $50 or more to be in a parking lot 10 feet from your neighbors.
Do you know the mindset of every RV owner who reads this newsletter? I’m sure there are many reading this who are only able to use their RV for 2-3 weeks a year. Many new owners don’t realize that there are “hidden” expenses to RV ownership. My recommendation to you, chill out, not everyone is in your position in life.
Studies have shown, and I believe them that the average RV buyer uses his or her RV 20 days a year. RVtravel.com readers on average spend much more time. Anyone who uses their RVs much of the year — then it’s a no-brainer that traveling with an RV is more affordable that just about any other form of travel. But for the many, many RVers who only use their RVs for a few weeks a year, or even a couple of months, there is no way when you factor in all the yearly costs of ownership, that an RV is the most affordable way to go. It’s not.
We are in our RV for 6 months every winter. So it’s not a yard ornament. We don’t need to fight the crowds during the summer season. I use the time at home for maintenance and projects, on a leisurely schedule. Reinforced the pantry shelves this year and installed LED lighting inside with magnetic door switches, among other items.
As for RV sharing, I have only one friend that I would trust our rig with, who is also pretty handy and could fix most things that might pop up. Might consider that in the future.
We bought a small lot in AZ, calculated the cost of the lot against the cost of RV parks. Break even point was 7 years, but with higher park rates now, that point will come sooner.
Comparing cost of an rv or motel was never a discussion. We had no desire to live out of a suitcase on our vacations,(motel). The main reason though for choosing the rv vacations is the Freedom to go wherever, whenever, without having to plan weeks or months in advance. We mostly stay at FS campgrounds, BLM campgrounds, and city, county, and state parks and have most always found available sites. We refuse to pay the greedy high priced private park prices, so our costs are reasonable. Besides, can’t put a price tag on the freedom that the rv gives us.
It truly depends. You have to compare rving to roadtripping with motel stats stay in the same areas in the same destination areas.
The average motel cost per night as of 2022 is$150 per night.
The average RV campsite as of 2023 is $50 per night. So 3wks motel is $3150 3 wks RV spot $1050.
You still have vehicle purchase, depreciation, maintenance, insurance and licensing to factor in for both ways to road trip And RV.
MPG will favor road tripping. Meal costs will favor rving.
We have found it to be a cost savings the way we travel and for our use style.
Rv’s are a money pit and there is no denying that. The question is how much or how bad or how deep is the pit? Do-it-yourself and mechanic types save considerable on repair and modification costs both minor and major. It isn’t possible to comparably compare ho-motels or private home ownership to an Rv. Each has it’s merits. Homes generally are an asset. Invested money hopefully is an asset. However each has it’s down side as well, insurance for example is needed on everything we do! Taxes and license fees, etc., etc.. Rv’s and cars are a liabilities, however a car is necessary. Enjoy the pleasures of our lives?
(Cont’d): What makes you happy, proud, comfortable? We each need to decide how much time, effort and money we are willing to put in the pot – be it a home, a car, an Rv, a hobby or whatever! Hopefully, we will be able to enjoy the fruits of our labors and do everything we wish to do, the way we wish to do it!
Amen to that !!
Lots of people go together to buy ski condos, beach houses, boats, or airplanes. An RV shouldn’t be all that different. Good idea, but wouldn’t work for us full-timers.
It’s cow poop not poo. 😉
Our Class B is my daily driver. Have had 2 VW campers and 2 Ford vans that we camped out of. All have been the second car. Now we are fancy campers, still with two vehicles. If we ever get down to one vehicle it will be the Class B. No mall restrooms for us and I can nap while she shops. Just gotta think it thru and consider your options.
We bought ours for $2700 and renovated. No regrets and we are comfortable. I can’t imagine having payments every month. That would be unreal.
Buy used, the first owner has the major depreciation, has to deal with the initial repairs and recalls. I’ve even made money by buying used.
Surely people can think a little about figuring expenses. Common sense? Mine was paid for in two years. I don’t share or rent my trailer nor my toothbrush. I just wanted something to camp with in my retirement. I don’t need to impress anyone. In the last nine years, I’ve paid approximately $50 a year for license. I pay next to nothing for insurance. I stay in campgrounds I like with no hookups 90% of my camp time. It doesn’t cause any additional gas usage that I can notice. A mechanic nephew changed brake shoes for me and two nephews check my wheel bearings and grease. It is parked in my garage on my never-mortgaged property. Can’t complain about expense, it’s just my choices.
Continued–full disclosure, I’ve purchased some fun and expensive things like an outdoor stove, comfy chair, things for cooking outside, miscellaneous stuff for the dog child, etc., but try to be a minimalist, it’s fun figuring out everything without needing electricity and excess weight.
Sage advice! For us being retired we use our RV year around so the cost is low per use.
Being someone who travels in my RV 6 months of the year or more I feel sorry for the RVs that are purchased and sit parked in yards and storage facilities for years…they thought they were in for adventure and they are stuck in nowhere land.
I bought my TT for my 60th birthday so I could travel with my dogs. When we went to Australia for a cruise a friend traveled from Montana to Nevada to stay with them for the 21 days we were gone…can’t afford to board them.
No one would take care of our trailer the way we do. Ours is a 2010 Nash and looks new. Camped by a 2016 Arctic Fox yesterday that looked horrible, delimitation, faded, dirty and beat to crap. No thanks~
For those readers interested in viewing the full Vacation Cost Comparison report, which was completed by the outside, independent research firm CBRE Hotels Advisory Group, it is available on the RVIA(.org) website under the Reports & Trends tab. The full 125-page report and methodology is available and open for anyone to read.
Particularly of note, it was very important that the total cost of ownership was included. Total cost of ownership was based on: published data regarding average ownership periods, residual values, annual days of utilization, insurance, and other costs of ownership, as well as any applicable tax benefits.