What would you do? Bought RV because of Harvey.

Question

We got flooded from Harvey and bought a brand new 2018 RV to live in for 9 months. They are like cars and lose value the minute you take them off the lot but we were desperate. We owe $27k on it. We could put it on a consignment lot but they won't even give us an estimate of how much it could bring unless we haul it down there. We don't really have means to do this without paying someone to move it. I know that route we will lose money and have to pay the difference in the loan.

Second idea. There are some lots down in Galveston right across from the beach and on a canal that you can buy so I thought about purchasing on of those and putting the RV there and then selling the whole thing lot and RV. But some of those have been on the market for a while. I was told they don't really allow STR in that subdivision so I wouldn't be comfortable doing that while I wait for a buyer so it might just sit for a while til we could sell it outright.

Other option is to take a big down payment and owner finance the RV and lot. We are getting some money from a building we had owner financed to someone that the county is purchasing for roadway. At the very least break even?

My concern is tying that money up on that property but having had a taste of the interest we were getting on the previous building was sweet.

I am open to any other ideas or finessing of these.

Thanks,

Brenda

Brenda Logan · Answer

Belinda Lopez, yes I believe it's Gilchrist the lot I was looking at. We actually bought a golf cart from someone out there that had a trailer (older one) set up on a lot with a screen room, carport etc and they were selling owner finance for $99k. They sold it within a week or two. There is a lot there that is ready to go for $62k with concrete pad, bulkhed, rock driveway, utilities etc. It's been on the market for I believe 146 days so they may take a lot less during winter. All it would need is an RV cover which wouldn't cost us too much as that's what we do.

The RV is on our property here in Baytown. We have 2 acres. I'm interested in your park and sell, where is that going to be? I'm not sure my loan will allow a wrap note, I don't really know much about those. I thought I would have to have the lot and the RV paid off to be able to sell it owner finance?

We did pay someone to move it for us to get it here when we bought it. It's a 2018 Sportsman 3221k. We bought the extended warranty (60 months) also.

We're so ready for the RV and the loan to be gone. Any more ideas?

Thank you everyone for you replies.

Nik Moushon · Answer

Sorry but I agree with Matthew. You're going to take a big hit on re-sale. They just dont hold value, even worse than cars really. That why I would never buy one new. You could try renting it out as a STR but you are risking investing more just to loose it later.

One way to look at is how much would you have had to pay for renting somewhere and see how that compare to what you sell it for. It might make the lose not seem so bad.

Belinda Lopez · Answer

Galveston won't let you live in RVs so you might be talking about Crystal Beach, Bolivar and Gilchrist on peninsula. Those lots are going from anywhere from $12k - $24k. There are tons of them available and they don't seem to move very fast.

Where is the RV located now? How big is it? Is there any warranty left? I am buying an RV Park and plan on having an area where folks can park and sell. Do you know what the book value is? You could easily do a wrap note and sell on terms since so many folks can't get financing. You can also pay someone to move it for you. I was looking at this option for a friend of mine as it's not too expensive. You can also rent a truck uHaul that you can pull it with. What is the make and model?

I think you'll be able to find an option that will work for you.

Matthew Paul · Answer

@Brenda Logan I hate to give you some bad news , you are going to take a big loss on the RV . Once someone figures out you lived in it for 9 months the price drops more . You can buy a new RV at a lower interest rate and get a full warranty for the same or lower monthly payment as a used one . When I bought my camper , the guy paid $24 grand , had it for 5 years and owed $19K on it And thats what he was asking .( He put $1000 down ) . Book value was $ 11grand . I had a copy with me and I told him thats what a dealer would sell it for on a lot . I offered him $8000. And gave him my number and said offer was good for a week . He called 3 days later and accepted . ( Dealer offered him $7000)

My suggestion to you is go buy a truck that can pull it and go enjoy camping . Its fun .

What would you do? Bought RV because of Harvey.

4 Replies