Thank you for reading our post, please rate this article at the end.
Last Updated on September 5, 2024 by Paul Clayton
Table of Contents
Why RVs Are a Bad Investment – 15 Reasons
Recreational vehicles can entice those seeking the freedom and adventure they offer. However, substantial financial considerations can make RVs a precarious investment. We aim to show why RVs are a terrible investment for some people, providing an in-depth analysis of the associated costs and implications.
- Depreciation: RVs depreciate up to 30% within three years.
- Maintenance Costs: Ongoing expenses for engine, living space, and appliances.
- Storage Expenses: Monthly costs ($50-$200) without home storage.
- Fuel Inefficiency: High fuel costs due to poor efficiency.
- Insurance Expenses: Larger size leads to pricier insurance.
- Initial Investment: Even modest RVs rival small house prices.
- Selling Difficulty: A limited buyer pool makes reselling challenging.
RV living fascinates everyone who looks at a luxurious motorhome. You would have thought of buying an RV for you at some point. But do you know it’s not always as exciting as it seems?
While there are many advantages, owning an RV has its demerits, too. Oh, it bothers me that you didn’t think about that. Well, don’t worry. I have formulated a list of 15 reasons RVs are a terrible investment.
Go through these reasons and find out if you still want to invest in those large recreational vehicles and roam the world.
Why RVs Are a Bad Investment – 15 Reasons
RVing is fun, but several factors hint that owning an RV is a bad investment. Let’s dig in.
1. RVs are Expensive
There has been a tremendous increase in RV enthusiasts in the last couple of years.
Almost everyone is buying or planning to buy a motorhome, a fifth wheel, or a camper trailer, even though these are extremely expensive.
Do you know motorhome prices start from $40k and may reach up to $3M? And these are just the basic estimates without any bells or whistles. Customize your RV, and your bill will skyrocket.
On the other hand, camper trailers, fifth wheels, and pop-up campers are relatively more economical options. They start at around $10k and may top up to $60k.
And the fun part is, these are just the initial payments you make. A series of expenses and costs would follow up throughout the time you use your RV.
2. RVs are Gas Devourers
One of the significant expenditures that follow is gas. RVs are gas guzzlers. Class A motorhomes give you around 8 to 14 mpg, while classes B or C may offer 12 to 22 mpg.
Camper trailers are relatively better fuel efficient but aren’t cheap either. Pulling a massive fifth wheel or trailer reduces the tow truck’s fuel economy by 20% to 50%.
Let’s try to get an idea: if your recreational vehicle gives you ten mpg, a round trip of five hundred miles would only cost you around $150 to $175 for gas.
Imagine taking a 2,000-mile trip across the country in your RV, and it’s no less than $500 to $600 for one way only. Making an asset is easy, but maintaining it and the frills that come with it are often more challenging.
3. RV Accessories
If investing in an RV tempts you, consider it an economical option. Think again.
RV living is in no way frugal. If you live in a compact space, you cannot expect all the essential accessories in their original shapes and sizes.
Thus, you must invest in RV living accessories, such as a tiny microwave, foldable accessories, stackable utensils, a washer, furniture to fit sheets to fit the mattress, and much more.
Do you know there are tissue papers specific to RV usage? Regular tissue rolls take a lot more time and effort to dissolve.
Similarly, while you camp, you need camping gear, grilling and barbeque equipment, lounge chairs, etc.
Other important things to consider are generators and accessories compatible with hookups, like hoses, filters, connectors, cords, adapters, leveling blocks, etc.
4. RV Services
Now that you buy an RV, there are several expenditures that no one told you about. For example, you must pay for parking, hookups, and road assistance.
Some places offer free parking for RVs, but usually, no hookups are available. To avail of hookups like electricity, water, sewage, and more, you can join several RV clubs and book your slot at the campgrounds.
As for road assistance, you can buy subscriptions to several economic road assistance plans that offer numerous benefits such as unlimited towing facility, repair costs, etc.
Do you know that towing your recreational vehicle to the nearest facility may cost you up to $1000 in case of a breakdown? Moreover, you can’t say if you can get any help in a secluded area; you choose to camp for peace unless you have a backup plan in the form of a road assistance subscription.
You may find this detailed article on the ten best RV road assistance plans helpful if you wish to avail one.
5. Another Insurance Bill
Investing in an RV requires another insurance bill. If you want to stay street-legal, it’s the pill you must take. Get your motorhome insured, around $1000 to $2000 a year—the more extensive and expensive the recreational vehicle, the bigger the bill.
Several factors affecting the rate may include your driving history, personal belongings coverage, roadside assistance, and your intended usage. Whether you want to use your RV for occasional trips or plan to switch to full-time RV living,
6. Expensive Maintenance
You need to maintain your RV regularly. Any place you live requires regular upkeep so everything stays in shape and proper working condition. Now, RV maintenance is not cheap.
After all, your recreational vehicle is exposed to severe weather, and the wear and tear caused by it and constant moving on the road requires maintenance.
You encounter maintenance requirements with every vehicle you own, such as tire changes, oil changes, battery upkeep, keeping the brakes entirely operational, and much more.
Then, there are maintenance requirements specific to RVs. Such as broken generators, slide motors, awnings, windows, furniture or accessories, etc. All of these are expensive
7. Depreciation Value
It’s common knowledge that every vehicle you purchase depreciates. Well, RVs depreciate a lot. When you buy a recreational vehicle and hit the road, your motorhome loses 25 percent of its value. Furthermore, the following expenses are another, especially the first year of getting your brand new RV.
The exciting part is how your dealer may try to convince you to consider an RV to replace your house. RVs give a homey feel, but a house appreciates over time while RVs depreciate.
You can’t even expect to get half the introductory price of what you paid in some cases, not to mention the additional accessories and customization expenditure.
You can consider investing in a used RV, as it is preferable. This way, you pay almost half the price while the previous owner makes several adjustments and fixtures to make it work.
8. Used Vehicles May Have Hidden Issues
Everyone, including me, suggests you invest in a used motorhome as it is more affordable. But using RVs leads to another significant disadvantage as well.
There may be several underlying issues with the RV you are interested in, for instance:
- The wiring could be brittle, fragile, or almost damaged.
- There could be a vibration that may lead from one issue to another.
- The gray and black water tanks could be damaged.
You cannot see and check everything yourself, especially the wiring. I recommend hiring a trusted mechanic to inspect the vehicle and get the best possible advice. Take a ride so you know if there is any vibration or any other underlying issue.
On the one hand, buying a brand-new RV is extremely expensive and has its issues. On the other hand, investing in a used RV poses several other risks. You may consider investing in its renovation and repair, but remember that finding spare parts for ancient models becomes harder.
If you find a used RV at a meager price, don’t fall for it. It may have numerous issues that you can’t detect. Never ignore the red flags.
I do recommend investing in a used RV. However, there is no reason for anybody to buy such an old rig that is sure to have severe and costly problems.
9. Must be a Good Driver
It’s a crucial point to add to this list. RVs are a good investment for you only if you are a good driver or have someone who is a good driver.
Driving an RV is nothing like driving a regular car or truck. It requires special skills and in-depth knowledge of handling such massive vehicles.
Driving skills for an RV are incredibly demanding when parking in a relatively congested space. Parking a fifth wheel or a camper trailer is even more difficult.
While you reverse, you must use mirrors and the equipment designed for this purpose. You cannot rely on intuition or guesswork – like looking over your shoulder.
Reversing a camper trailer is even more challenging as the rig moves in the opposite direction of your towing vehicle.
Another crucial aspect is driving on a downhill slope. You must learn to move without hitting your brakes consistently on such roads, as no matter what you do, your RV won’t stop if you mismanage your brakes at a downhill slope.
10. Limitation (Urban Exploration)
While traveling on RVs, you can explore numerous beautiful places nationwide. However, the RV isn’t a perfect choice for urban exploration.
You cannot move around the city in your heavy vehicle. Some cities restrict big vehicles from entering specific areas, while others may be too crowded to let you RV in.
In such situations, you can either stay on the outskirts or hire a car to move around the city comfortably. Just park your motorhome at a shopping mall’s parking area or any other place with ample parking space. Don’t leave your RV unattended at a secluded home to avoid any unfortunate scenario.
11. Overnight Parking Limitations
Overnight RV parking is a huge factor to consider. You cannot park your RV overnight without local authorities’ permission. Unless it is designed for RVers, like campgrounds, etc., staying overnight at campgrounds requires payments.
Some places offer accessible overnight parking facilities for RVs in their parking lots as well. Some examples are Walmart, Costco, Cabela’s, Cracker Barrel, etc. However, you must call the manager of the place you intend to park overnight beforehand to avoid any confusion or hassle at a later stage.
Sometimes, the permission is at the company’s manager’s discretion, while other times, it is due to the state orders. Several states do not allow overnight RV parking due to security issues. For example, Wal-Mart allows overnight parking in some of its outlets and doesn’t permit it in others.
Several apps assist the growing number of RVers looking for an overnight RV parking facility.
12. You Can’t Escape Housework
There is no escape from house chores in a motorhome because it’s still “home.”
Being in a recreational vehicle won’t exempt you from house chores.
You still have to do the dishes yourself—Cook food for yourself and your family. Keep everything in its proper place.
When there is limited space, even a minor mess dramatically impacts things. Everyone moving inside the RV with dirty shoes after a trip from outside makes you mad. But you need to clean and mop so everything is in order.
How about doing the laundry? You cannot leave all the dirty laundry to pile up when there is constant movement in and out of the RV. Washing the load in that tiny machine, then drying it and storing it in that minimal space, requires some patience.
RV living is not for you if you like getting clean linen and cooked food like in a hotel while traveling.
13. Storage and Parking Issues
RV storage is an essential factor to deal with. You do not spend thousands of dollars only to get your RV damaged while staying idle. If you intend on full-time RV living, you may skip this part, but it is a matter of concern if you plan occasional trips.
You cannot park your RV in your driveway as it’s not allowed by the authorities. Or a neighbor might report you for parking your RV in your driveway, considering it an eyesore. Having a massive garage to store your vehicle safely would be best, or you must look for a storage facility nearby.
There are several types of storage areas. Some offer concrete ground and a shed, but the RV is not fully covered, thus exposed to severe weather conditions and rodent attacks.
Check out these excellent tips to rodent-proof your camper.
On the other hand, some facilities do offer fully covered storage spaces for RVs. However, these facilities are comparatively more expensive.
Yet another critical reason why RVs are a terrible investment is that there is no time when you are not spending on your recreational vehicle, even when you are at your home while your RV is parked.
14. Nature Can be Unpredictable
Although RVs are generally safe to use, extreme weather conditions may become a point of concern sometimes. After all, it’s still a vehicle. You cannot expect it to be safe from tornadoes, wind storms, or severe snowstorms.
Your awnings, outdoor furniture, and other stuff are vulnerable to being tossed around if strong wind hits. Any flying object can plug your vehicle and damage the exterior. Here are a few tips to stay safe in such unpredictable situations.
Firstly, I recommend always staying updated with the weather in the areas you plan to visit.
Secondly, always have a list of places where you might find shelter in extreme weather conditions.
Lastly, I strongly suggest you always keep a weather radio with you so you can call for help even if your phone’s battery dies.
15. Sewage Issues
Everything fascinates about RV living, but when you experience it, you may not find it as appealing afterward. One of the reasons that may cause such a change of mind is sewage in RVs.
Two types of tanks hold water. These are the black water tank and gray water tank.
For a gray water tank, you must be very careful while consuming the water so it lasts until you reach your next destination. This tank holds water for kitchen use.
The black water tank holds water coming from the toilet. The reservoir can usually last for about a week’s usage by two persons. That means you have to stop by a dump station pretty frequently.
It would be best to keep the tank in better condition by flushing frequently and using RV-specific toilet cleaners and toilet paper, as it helps the toxins break down quickly.
How Long Do Most RVs Last?
The longevity of most RVs hinges significantly on the level of care and maintenance they receive. On average, properly maintained RVs can last 10 to 30 years or approximately 200,000 to 300,000 miles.
However, neglect, improper use, and lack of regular maintenance can significantly shorten this lifespan.
To ensure your RV lasts as long as possible, it is crucial to adhere to the manufacturer’s maintenance schedule, promptly repair any damages, and protect it from harsh weather conditions.
Understanding how long most RVs last and taking the necessary precautions can help you maximize your investment and enjoy your RV for many years.
Summary
In conclusion, “Why RVs Are a Bad Investment” can be answered by examining the significant financial burdens associated with RV ownership.
Foremost, the rapid depreciation of RVs, which can reach up to 30% within the first three years, significantly reduces the value of this asset. Moreover, ongoing maintenance costs for the engine, living space, and appliances add to the cost of ownership.
Additionally, if home storage is unavailable, RV owners can incur monthly storage expenses ranging from $50 to $200. The larger size of RVs also leads to high fuel costs due to poor efficiency and pricier insurance premiums.
Furthermore, the initial investment for even modest RVs can rival tiny houses, making it a substantial financial commitment.
Finally, selling an RV can be daunting due to a limited buyer pool, making it difficult for owners to recoup their initial investment. Thus, considering these factors, it is apparent why RVs may not be a wise financial investment.
Home page
Back to the top of the page
