Costs of Owning an RV

The purchase price of your home-on-wheels is not the only monetary output you have to consider. There are other important considerations you must figure into the cost of RV ownership, including insurance, monthly storage, and maintenance. It is far wiser to be well-informed up front than to splurge on an expensive model and find that the additional costs are causing so much financial burden on your family that you can’t afford to use and enjoy your RV.

Here are some of the important costs you should consider before you purchase your dream RV, so you can create a budget that meets the needs of you and your family:

»        Financing Costs – If you finance your RV, there will be financing costs, including interest and up-front fees. There will also be a down payment. There is plenty of room to play with these figures and make it easy for you to buy your RV. I will go into these in complete detail in the bonus report, “The Right Way To Finance Your RV.”

»        Depreciation – Just like a car, the moment you drive your new RV home, the value depreciates, and it continues to do so over the life of the vehicle. There is no possibility that it will increase in value. However, depreciation doesn’t have to make a big impact; in Chapters 8 and 10, you'll learn tricks to avoid taking large depreciation hits.

»        Maintenance Costs – The cost of owning an RV must include the cost of service/maintenance, repair, and refurbishing. These costs vary depending on the type of RV, how it is used, how well it is maintained, and perhaps how your luck goes in a given year. Also remember that these costs will increase as the RV gets older.

One of the best ways you can get an idea of maintenance costs for the particular brand of RV you are considering is to go to one of the owner forums on the Internet and look up maintenance. Whether their opinions are positive or negative, RV owners are very happy to share their experiences and do so freely in these forums, so it’s pretty easy to get an unbiased picture.,

»        Insurance and Licensing Costs – Like gas, insurance premiums are skyrocketing, but there are things you can do to limit your costs. Shop around for the best deals, and don’t forget to check the group rates at some of the big RV clubs.

Also, remember that liability insurance costs are proportional to the mileage and the driver's record. Casualty and comprehensive costs are proportional to the price of the RV. Licensing cost is usually a flat fee, except in states where RVs are taxed as property through the licensing process; then the license is proportional to the value of the RV.

You can learn much more about finding the best RV insurance in the bonus report, "What You Need To Know About RV Insurance."

»        Storage Costs – If you don’t have space where you are living to park and store your RV, you will have to rent storage space. Maybe you can park your RV on your property, but you live in an area with extreme winter weather, so you need a place where your RV will be protected from the elements during the winter months. This means you will have to find a place to store your RV for part of the year.

Storage can cost anywhere from $30 up to $100 or more a month, depending on where you live and what features you will pay for along with your storage. (For example, in some states you might want continuous, thermostat-controlled storage.)

»        Costs Incurred When Using Your Vacation Home on Wheels – You should also figure the costs to use your RV. With the price of gas skyrocketing and the average Class A getting 5-10 miles per gallon (diesel gets slightly higher gas mileage, averaging 7 – 12 mpg), the fuel for a cross-country trip can be quite expensive. For towables, take into consideration that your tow vehicle will be getting less miles per gallon when it is towing your trailer or Fifth Wheel.

When selecting an RV, keep in mind that a lightweight rig won't consume as much fuel as a heavier one. And you only use fuel when you're traveling. Look for campgrounds, attractions, and activities that are located close to home. You'll spend less money on fuel and less time on the road, and you'll have more time to enjoy your destination.

»        Campground Fees – There are also overnight fees to park your RV. Many campgrounds charge an optional amount for sewer, cable, and telephone connections, in addition to a basic nightly rate. You can control overnight costs by only paying for the hookups you’ll actually use. Ask about weekly and monthly rates, as there often are discounts for extended stays, especially in private parks. You also will find that rates are cheaper in some campgrounds during the "off-season" periods.

There are two methods for figuring how much it costs to use your RV. One approach, particularly if you are a part-time RVer, is to calculate RV costs for an average trip, including campground expenses, fuel, food, and activities. Armed with your average trip calculation, compare the cost of RVing to other vacation or travel options.

The other method is to estimate your RV expenses on an annual basis. This method can be utilized for the occasional RVer as well as frequent travelers. Calculate the cost per trip, and multiply it by the average number of vacations you will take in a year.

Considering the cost to own the RV, when I compared the numbers for me, the savings wasn’t there (especially when I was not using the RV). However, I did not necessarily buy the RV to save money on my vacations; I bought it for the richness of the experience.

Jeff Radich is a professional research writer and active RV enthusiast.