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Newell Gurus
Does anyone spend 225k just to drive 6 mos - Printable Version

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Does anyone spend 225k just to drive 6 mos - rundlc - 12-09-2020

I have spoken to a "lets say dealer"  who told me some people buy these coaches just to drive them for six months and then try to resale them at a higher price???? Ok Ive never heard that one before! Sounds like a line of BS. I call BS


RE: Does anyone spend 225k just to drive 6 mos - Richard - 12-09-2020

Anything is possible, but I would say that unless one gets wholesale buys, the selling any RV for a profit is all that common.

More likely the six month owners sell because they 1. found the lifestyle was not what they thought it would be, 2. the coach maintenance was way beyond what they were prepared for, 3. their situation changed.


RE: Does anyone spend 225k just to drive 6 mos - lelievre12 - 01-31-2021

The main reason folks would sell quickly is for tax purposes. If the coach is used as a business tool then it can be mostly depreciated in Year 1 under Section 179 expensing.  So if you are trying to shelter lots of income (nice problem) then buying and selling RV's makes sense.  

If works like this:

[Image: 2021-Section-179-deduction-example.jpg]

So your $1.15M coach only 'costs' you $747.5K.   And if you can sell that coach again after 1 year for $1 million you just made a $250K profit. All care of Uncle Sam.


RE: Does anyone spend 225k just to drive 6 mos - smagown - 01-31-2021

The big "if" is getting $1M after a year. The depreciation curve is steep on these toys. The best part is getting the tax relief and having the coach, win- win.


RE: Does anyone spend 225k just to drive 6 mos - Chester Stone - 01-31-2021

You forgot the tax on the gain which will not be at capital gains rates. Cash loss, tax on the sale, one year write-off and proving it was used only for business is a steep hill to climb.