As you get more disposable income, you may be grappling with a personal finance decision of whether or not to invest in an RV. There are lots of similar financial decisions people are faced with, such as whether to buy a second home.
It can be a tough decision when you’re considering the purchase of something you don’t necessarily need, but that you’d like to buy.
The following are some things to consider from an investment and personal finance perspective if you’re thinking about an RV.
What Will You Do When You’re Not Using the RV?
For a lot of people considering the purchase of an RV, the first thing they think about from an investment perspective is how much they’ll use it, but there’s another way to look at it.
Think about the options you have to rent out the RV when you’re not using it. Do some research into how much RVs comparable to what you’re thinking about buying rent for and do the math as to how much you think you would be able to rent yours out for.
You may find that you can create an RV business that will more than pay for the payments you make. A lot of RV owners have discovered they can not only cover their costs of ownership but even make a profit from their rentals.
If you think of it from this financial perspective, it can also help you choose an RV with the features that renters tend to find most desirable. Do a little market research before going any further with your purchasing decision.
How Often Will You Use It?
Once you cover the opportunities you can have to create a business with an RV, then you can think about your personal use.
Do you think you’ll use it every weekend, for extended trips, or just occasionally? These are considerations to keep in mind as you select your must-haves.
It’s also a good idea to take your time and look at as many different options, floor plans, and features as you can.
This is supposed to be an enjoyable luxury purchase for you, so you want to make sure that you find something that you are really going to enjoy.
Along with the purchase of the actual RV, there are other costs you should think about. The costs that come with an RV often include maintenance (and the bigger the RV the higher these costs will usually be), towing, the cost of gas, camping costs and insurance.
Of course, this doesn’t take into account the cost of your other expenses you’ll incur while traveling, such as meals.
Don’t Be Afraid to Buy Used
If it’s your first time buying an RV or you’re really watching your budget, you may think about going with a used model. It will give you the opportunity to save money and get a feel for the RV life and make sure it’s something you like.
The decision of whether or not to invest in an RV is a personal one that works well for some people and not for others, but if you are thinking about, the above list gives you things to consider beforehand.
Are you considering the idea of investing in an RV? Share your thoughts and comments below.