How much are you willing to spend?
There are a lot of costs you need to keep in mind when trying to decide motorhome or trailer.
At the front of the line is the purchase price. As mentioned earlier, a nice Class A motorhome can cost as much as some real homes. Even so, there might not be a huge difference between the price tag of the motorhome and a new pickup truck and a travel trailer.
Other cost areas include:
- Maintenance
Rule of thumb: trailers have fewer things that break. And the bigger the RV, the more that can go wrong--because motorhomes have engines, and transmissions, and pumps and sophisticated electronics. So unless you're handy with a screwdriver and a wrench, repairs are generally more expensive.
And don't forget: if your motorhome has to go into the shop, your living accommodations go with it. On the other hand, with a trailer, should your truck or SUV need repair you'll still have a place to live while waiting for the mechanic to work his magic.
- Miles Per Gallon
Except perhaps for the pop-up, pulling a trailer is like pulling a small building. And buildings are not usually noted for being fuel efficient. This means that, depending on your tow vehicle and trailer, you might see a sobering 8 to 12 mpg on a good day.
For motorhomes, again, depending on the size of the rig and its equipment, 6 to 8 miles per gallon is about the norm.
- Campground Fees
Fees for campgrounds are all over the map. Some federal, state and county agencies offer free camping in primitive sites or a very reasonable $10 to $20 per night. (Keep in mind that luxuries like water, sewer and electricity, if available, will add to the cost.
At the other end of the spectrum, privately run campgrounds that offer heated swimming pools and hot tubs, laundries, rec rooms, restaurants, landscaping, cable TV and hefty 50-amp electric service charge equally hefty fees--some exceeding $50 a night.
And because most government-run campgrounds were built w-a-a-y back in the early days, the size of many sites can be on the tiny side (think two-door car and a tent). With today's increasingly larger trailers and motorhomes, fitting into many campsites can be a challenge if not downright impossible. So when you're deciding on a motorhome or a trailer, keep this in mind, as bigger is not always better.
- Insurance
Same as with maintenance: the bigger the rig the larger your insurance bill. You should check several insurance companies for the best rate and service before you buy, and figure that a motorhome is always going to cost more than a trailer.
- Financing
Due to the cost, most RVers finance a large part of their purchase (for 10 to 15 years on average). This makes it worth your time to check bank and credit union rates and see what type of loan you can obtain before you go shopping. Then there's no pressure for you to use the dealer's bank.
TAX TIP: Because virtually every motorhome and many trailers feature beds, kitchens, sinks, and bathrooms, the IRS considers them to be homes. And that means that the interest on your loan may be tax deductible as a home mortgage.
And keep in mind that if you decide on the trailer route and you also plan to purchase a new tow vehicle, car or truck financing is seldom longer than seven years.
- Depreciation
It's a sad fact that just about any major purchase you make depreciates the moment you hand over your money. And while trailers aren't immune to such declines in value, they still have the advantage over motorhomes. Because motorhomes have odometers, and the more miles on the clock the lower the resale value.