RV VERSUS NON-RV

Travel Entirely by RV Other Forms of Travel (Air, etc)

Total Cost from table $_______________ Transportation $____________

Camping Cost _______________ Motel/Hotel ____________

Food _______________ Dining ____________

Total ________________ ____________


Back to the assumptions for the Rving. The cost of ownership is affected by financing or tying up hard earned capital. I have selected the capital method and have used 6% after tax return as the "Cost of Money". The ownership costs will be quite a bit higher for financed rigs, even though in some cases the interest can be considered tax deductible for primary or secondary house. Check with your tax accountant for this information.

Difficulty arises when comparisons are made because ego biases rational thought. I have chosen to look only at values estimated from references like the NADA and Kelley Blue Book references. I think you will find the comparisons interesting and will lead to interesting discussions with your significant other. I have owned three Class A motorhomes, tow truck campers, and several tents. I have also driven many miles behind the wheel of a passenger bus. My actual experience allowed me to perform reasonableness tests for the data presented herein. With that experience and published performance information from Trailer Life Magazines, Motorhome Magazine, manufacturers sales brochures and others, I will attempt to compare operating and ownership costs and then do some summary comparisons.


The Purchase price used is slightly lower than the MSPR to estimate the actual purchase price, since we all know that the asking prices for RV's at least 20% higher than the street price. We all know that you don't very often get the book price when you sell a used coach, but again I used a number that would represent closer to the actual sales price of a used vehicle. I tried similar wholesale new and trade-in prices and they yielded similar numbers. Using this approximate real market value procedure somewhat balances the low cost of money figure that I am using. I have chosen a 6.5% after tax cost of money.


If you don't like the assumptions that I have used, then by all means use your own, but don't email me and tell me I'm wrong because these are my estimates. I respect your right to make you own estimates. You will find an Excel spread sheet attached to this document that you can have your fun with.

COMPARISON OF RVS

I will start with a car/van towing a travel trailer and end up with a luxury Class A motorhome with all the logical steps in between. The assumptions below apply to all type of RV's

Years of Ownership			4
Yearly Mileage			10000
Diesel Fuel Cost			$1.20
Gas Fuel Cost			$1.30
Cost of Money			6.50%

CAR/VAN TOWING A TRAVEL TRAILER

The car/van chosen for the evaluation is a Suburban or Ford E-250 Van and represents a tow rig with 8000 lb. towing capacity with appropriate safety. The travel trailer is a typical 30' unit with one slide out and nice trim. This would be a combination that would provide reasonable comfort driving and camping.

Purchase Price of Car/Van			28000
Selling Price of Car/Van			17000
Purchase Price of Travel Trailer			20000
Selling Price of Travel Trailer			12000
Car/Trailer Depreciation			19000
Cost of Money			4940
Capital Cost			23940
Car/Van License	400		1600
Trailer License	300		1200
Car/Van Insurance	600		2400
Trailer Insurance	400		1600
Basic Service Interval/Cost	3500	30	343
Major Service Interval/Cost	36000	400	444
Fuel Cost MPG Solo/Towing	14	9	4746
Tires Cost/Mileage	1000	40000	1000
Battery Cost/Year	300	5	240
Brakes Cost/Mileage	500	40000	500
Operating Cost			14073
Total Cost			38013
Cost Per Mile			$0.95

PICKUP TOWING A MEDIUM HEAVY FIFTH WHEEL

Here are the results comparing pickup prices listing the difference between the gas and diesel price for each year. Results were averaged for Dodge, Ford and Chevrolet all using a standard one ton, two wheel drive, manual transmission price.

Year Delta $ Diesel $ Gas $
1998 3600 24000 20400
1997 3000 21000 18000
1995 2500 18800 16300
1993 2000 14600 12600
1991 1000 10900 9900

It is clear that there remains a possibility of a price premium for a diesel engine however it reduces insignificant amount after 8 years. There is no attempt to compare performance differences between the brands. I am fully aware of the biases that exist towards individual manufacturers.

For our purposes I have selected a one ton pickup equipped to safely and legally tow a fifth wheel trailer with a Gross Vehicle Weight of 12000 lb. This would be about a 32' fiver with 2 slide outs and fitted out nicely but not luxuriously.

			GAS			Diesel
Purchase Price of Pickup			18400			22000
Selling Price of Pickup			12600			14000
Purchase Price of Fifth Wheel Trailer			71000			71000
Selling Price of Fifth Wheel Trailer			47000			47000
Depreciation			29800			32000
Cost of Money			3874			4160
Capital Cost			33674			36160
Pickup License per year	400		1600	400		1600
Fifth Wheel Trailer License per year	500		2000	500		2000
Pickup Insurance per year	500		2000	500		2000
Fifth Wheel Trailer Insurance per year	600		2400	600		2400
Basic Service Interval--Cost	3500	30	343	5000	65	520
Major Service Interval--Cost	36000	400	444	50000	200	160
Fuel Cost MPG Solo--Towing	14	9	4522	19	13	3000
Tires Cost--Mileage	1000	40000	1000	1000	40000	1000
Battery Cost--Year	300	5	240	300	5	240
Brakes Cost--Mileage	500	40000	500	500	40000	500
Operating Cost			15049			13420
Total Cost			48723			49580
Cost Per Mile			$1.22			$1.24

CLASS C WITHOUT A TOAD


It is more difficult to compare diesel engine Class C motorhomes vs. Gas engine Class C motorhomes since they are not a available in different chassis. By studying the NADA and Kelly Blue Book price guides and sticking with class C manufacturers that offer both engines in the same coach I am able to present the following information. The base for comparison was a 25' basic coach. In this comparison I assumed that there would be no towed vehicle and that the Class C would be used to go to the grocery store, etc.

			Gas			Diesel
Purchase Price of Class C			45300			50200
Selling Price of Class C			27300			29300
Depreciation			18000			20900
Cost of Money			9438			10335
Capital Cost			27438			31235
Class C License per year	850		3400	900		3600
Class C Insurance per year	800		3200	800		3200
Basic Service Interval--Cost	3500	30	343	5000	75	600
Major Service Interval--Cost	36000	400	444	50000	300	240
Fuel Cost MPG	12		4333	18		2667
Tires Cost--Mileage	1000	40000	1000	1000	40000	1000
Battery Cost--Year	300	5	240	300	5	240
Brakes Cost--Mileage	500	40000	500	500	40000	500
Operating Cost			13461			12047
Total Cost			40899			43282
Cost Per Mile			$1.02			$1.08

MEDIUM DUTY TRUCK TOWING A LUXURY FIFTH WHEEL

I choose to place a simple operating cost analysis here for medium duty trucks since they are not available with gas engines. One must realize that MD trucks have the capacity to tow weights greater than the heaviest fifth wheel trailer safely, legally, and morally and with more comfort and driving pleasure. Again we will assume 20,000 miles solo and 20,000 miles towing over a 4 year time frame. The resale market is just establishing the prices for used MD trucks and it appears that there is such a demand for used units, that a four year old truck with 80,000 miles recovers at least 85% of it's purchase price. The Heavy Fifth Wheel chosen in the evaluation is a 38" multiple slide out luxury unit.

Purchase Price of MD Truck			65000
Selling Price of MD Truck			55000
Purchase Price of Fifth Wheel Trailer			78000
Selling Price of Fifth Wheel Trailer			53000
Depreciation on Combination			35000
Cost of Money			4550
Capital Cost			39550
MD Truck License per year	700		2800
Fifth Wheel Trailer License per year	700		2800
MD Truck Insurance per year	700		2800
Fifth Wheel Trailer Insurance per year	600		2400
Basic Service Interval--Cost	5000	75	600
Major Service Interval--Cost	50000	400	320
Fuel Cost MPG Solo--Towing	17	12	3310
Tires Cost--Mileage	1500	60000	1000
Battery Cost--Year	500	5	400
Brake Cost--mileage	500	80000	250
Operating Cost			16680
Total Cost			56230
Cost Per Mile			$1.41

CLASS A WITH A TOAD

Comparing Diesel and Gas Class A Motorhomes is even more difficult since there are very few manufacturers that offer models that are available with both engines. Using NADA and Kelly Blue Book prices and studying Winnebago Vectra, Georgie Boy CruiseAir, Allegro Bus, and NewMar MountainAir, the following information was developed. It is assumed that a new 1993 coach was purchased in 1992, driven 40,000 miles and sold at a retail price in 1998. The Toad was a typical small SUV like a Honda CRV or Susuki Sidekick. The Luxury Coach is included just for fun so we can dream about winning the lottery and tooling around in one. It would be a typical Country Coach, Monaco, Foretravel, or NewMar Londonaire.

A towed car (toad) is added to this comparison because few if any rvers drive their motorhome to the resturant. I have chosen a typical small toad vehicle that can legally and safely be towed behind the coach. I have added the typical cost of toad bar, brake, and lights.

This is not a straight forward comparison since the chassis that these engines are in are not the same. Gas coaches use a 19,500 GVWR Chassis that is pushing its limits of safety, comfort, and pleasure. The Gas engine in this chassis is being pushed to its limits as are the transmission and other components. Gas engines in this application most always require rebuilding at about 50,000 miles. Automatic transmissions may not make it that far. These Gas chassis are short wheel bases and narrow tracks, so they do not handle very well in winds or on windy roads. It is normal to rebuild the front end of a gas coach in this 40,000 mile run. These repair costs are not included in this analysis.

The Diesel Chassis were Spartan or Oshgosh and rated at 22,500 and use medium duty truck components that are designed to go 500,000 miles without significant repair. I have personally driven a Spartan Chassis with Cummins 5.9 liter 230 hp engine with an Allison 3060 transmission for over 70,000 miles in a four year period. I can therefore verify to above costs. The diesel chassis can pull, turn, and stop comparable class A coaches far superior to the equivalent length gas coach. I can not recommend any Gas Coach that is longer than 30 feet, since that is the safe limit of that design in my opinion.

			GAS			DIESEL			LUXURY
Purchase Price of Class A			60000			98000			250000
Selling Price of Class A			40000			64000			160000
Purchase Price of Toad			20000			20000			30000
Selling Price of Toad			12000			12000			20000
Depreciation			28000			42000			100000
Cost of Money			3640			5460			13000
Capital Cost			31640			47460			113000
	Yearly
Class A License per year	900		3600	1000		4000	2000		8000
Toad License per year	500		2000	500		2000	600		2400
Class A Insurance per year	1000		4000	1100		4400	2100		8400
Toad Insurance per year	500		2000	500		2000	600		2400
Basic Service Interval--Cost	3500	30	343	5000	65	520	3500	30	343
Major Service Interval--Cost	36000	600	667	50000	200	160	50000	400	320
Fuel Cost MPG Coach--Toad	7	25	4754	12	25	3040	8	25	4040
Tires Cost--Mileage	1100	40000	1100	1300	60000	867	2400	50000	1920
Battery Cost--Year	300	5	240	400	5	320	700	5	560
Brakes Cost--mileage	500	40000	500	600	70000	343	1000	60000	667
Operating Cost			19204			17650			29050
Total Cost			50844			65110			142050
Cost Per Mile			$1.27			$1.63			$3.55

SUMMARY

Rving is difficult to put a dollar value on because it's a way of life. Vacation, snowbird or full time use of the RV will also effect your conclusion. It is interesting that the two major RV configurations, pickup/fiver vs. Class A, cost about the same. It is also interesting that the gas vs. diesel engine question is not answered definitively with this financial analysis. Therefore you should always chose the rig that you can afford that will be the most safe and comfortable. The other major thought is to think about what kind of other travel method would allow you to cover the ground that we do and still cost less than $12,000 per year. I would not trade the freedom and comfort of my own bed in my RV for 100 days per year for any group of airports, coach seats, rental cars, motels, restaurants, and strange beds. Would you?

			Per Mile		4 year total		Per Year		Per Day
Car/Van towing a travel trailer			$0.95		$38,013		$9,503		$26
Gas Class C with no toad			$1.02		$40,899		$10,225		$28
Diesel Class C with no toad			$1.08		$43,282		$10,820		$30
Gas Pickup towing a medium fifth wheel			$1.22		$48,723		$12,181		$33
Diesel Pickup towing a medium fifth Wheel			$1.24		$49,580		$12,395		$34
Gas Class A with toad			$1.27		$50,844		$12,711		$35
Diesel Class A with toad			$1.63		$65,110		$16,277		$45
Diesel Medium Duty Truck with Heavy Fifth Wheel			$1.41		$56,230		$14,058		$39
Luxury Class A with toad			$3.55		$142,050		$35,512		$97

OK guys, here's where we look at justifying what we want. It is interesting to look at the gas vs. diesel question in contest with cost. My personal preference is towards diesel engines and it is not hard to justify. The type of RV is the most significant factor in a cost of ownership. It is clear that to live in luxury it is less costly to have a Medium Duty Truck towing a highline fifth wheel. It is also clear that if you want to drive a Class A, it is cost justified to have a basic diesel pusher and by the way, this will be significantly safer and more comfortable to drive.

Since completing this article, I have created a spreadsheet which can help any RVer compare the cost of gas versus diesel using various types of RV types. By putting in your own estimates concerning initial cost, fuel price, etc., it provides you with a tool to make a realistic assessment of what the economic impact of various purchase options you might be considering. The spreadsheet is in Excel (Mac) format, and I'd be pleased to send it to you as an email attachment on request. Just drop me a line.

This has been fun to do and I hope you enjoyed reading it.

Drive Safe and Legal. Bob

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