The Hidden Costs of RV Ownership: What You Need to Know First

As the weather warms and summer approaches, many dream of hitting the open road in a shiny new RV. The freedom and adventure of RV travel can be incredibly appealing. However, before you apply for an RV loan with Envision Credit Union, it's important to understand the travel expenses of RV ownership.

While the purchase price of the RV itself plays a major role, many people often overlook the other ongoing costs. This blog post will look at the hidden costs of owning an RV. This will help you decide if an RV is a good investment for you.


 

Depreciation

One of the biggest financial considerations with an RV is depreciation. Similar to automobiles, the value of RVs depreciates significantly the moment they exit the dealership. On average, a new RV can drop in value by 20-30% in the first year. This means that if you buy a $50,000 RV, it may only be worth $35,000-$40,000 after just 12 months.

This rapid depreciation is important to factor in, especially if you plan to sell the RV in the future. It can make it difficult to recoup your initial investment.

Several RV proprietors attempt to economize by purchasing pre-owned RVs. These RVs have already lost the most value. However, used RVs come with their own set of maintenance and repair costs to consider.
 

Insurance and Registration Fees

In addition to the purchase price, you'll need to budget for ongoing insurance and registration fees for your RV. RV insurance usually costs more than regular car insurance. The average yearly premiums range from $1,000 to $3,000 or more. This cost depends on the size and value of your RV.

RV registration fees are usually higher than regular vehicle fees. The charges frequently rely on the weight and size of the RV. These fees can vary significantly by state, but you can generally expect to pay several hundred dollars per year.
 

Fuel and Maintenance Costs

One of the most significant ongoing costs of RV ownership is fuel. Larger RVs can get as little as 8-10 miles per gallon, which can add up quickly, especially during long road trips. Additionally, RVs require more frequent oil changes, tire rotations, and other maintenance compared to a standard passenger vehicle.

Depending on the size and type of your RV, you could be looking at fuel costs of $0.50 to $1.00 per mile or more. Regular maintenance, like oil changes, tire rotations, and inspections, can cost hundreds or even thousands of dollars each year.


 

Storage and Campground Fees

When your RV is not in use, it requires a secure location for storage. Storing an RV at home may be an option, but many neighborhoods have restrictions on RV parking. Dedicated RV storage facilities can cost $50 to $200 per month or more, depending on the location and amenities.

Utilizing your RV will require you to cover camping site charges. These costs can fluctuate between $30 and $100 or even higher per night. The cost depends on the campground's location and the amenities it provides. These fees can add up quickly, especially if you plan to travel extensively.


 

Upgrades and Repairs

As with any vehicle, RVs may require unexpected repairs and upgrades over time. Whether it's a leaky roof, a broken appliance, or replacing old parts, these costs can increase fast. It's fairly typical for those owning RVs to shell out thousands annually on upkeep and fixing issues.

To help cover these costs, it's smart to create an RV maintenance and repair fund. You might also think about buying an extended warranty or service plan when you purchase your RV.
 

Budgeting for the Hidden Costs

When applying for an RV loan with Envision Credit Union, it's crucial to carefully consider all the hidden costs of RV ownership. To understand your finances, you need to look at your entire financial situation. This will help you decide if an RV is a good investment for your lifestyle and budget.



Firstly, establish a well-defined budget. Include the purchase price, insurance, registration fees, fuel, maintenance, storage, and campground costs. This will help you determine if the monthly payments on an RV loan are realistic for your financial situation.

If the hidden costs feel too high, you might think about other options. You could rent an RV for certain trips or look into different types of recreational travel. In the end, you should decide to buy an RV with a clear understanding of the long-term costs.

At Envision Credit Union, we're here to help you navigate the process of financing and becoming an RV owner. Our team of loan specialists can help you understand your needs and help save you money.

We will find the best financing solution for your budget. Contact us today to learn more about our RV loan options and get the financial guidance you need to make an informed decision about RV ownership.