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FRACTIONAL OWNERSHIP OF RVs:
GREAT NEWS FOR THE RV INDUSTRY
As RV prices have skyrocketed over time, the ability for buyers
to rationalize their purchase has diminished. If an RV costs
$150,000 to buy, and the buyer predicts he can use it for maybe
only two weeks a year, then the interest carry alone for those
two weeks is (assuming an 8% interest rate) $12,000 - or almost
$1,000 per day. When you throw in the cost of insurance and gas
it's much worse. And that does not include depreciation on the
RV. At $1,000 per day, can anyone possibly explain to their
spouse, or themselves, how it makes any sense to buy one. Even
if you change the math significantly to one month per year, it's
still $500 per day in interest alone. I don't know about you,
but I can stay at the Presidential Suite of most 5-star hotels
for that price.
A new company, CoachShare, has introduced the concept of
fractional ownership of an RV. Under this program, you would buy
only a portion of the RV, and use every bit of your portion.
This idea is not new - it has been gaining market share in
private aircraft for a decade, and used in vacation condos for
four decades. But it's new to RVs, and it makes a lot of sense.
Let's look at that math. Assume that the RV share for 2 weeks of
each year costs $6,000, plus upkeep and insurance on the RV.
That works out to $35 per day in carrying costs ($6,000 at 8%),
which is less than a Microtel, not counting gas and insurance.
And if you want more time, you can buy more weeks. To me, it's a
win/win concept for RV park owners. The more folks get on the
road, the more nightly rentals, or park memberships, you have.
Of course, the big loser here, as always, are RV manufacturers.
Most of them are either broke, or nearly broke. And this concept
is not going to help pull them out of the toilet - more like
plunge them further down. But hopefully, that's not the business
you're in. As RV park owners, we want to see a vibrant RV
market, but the manufacturing side just doesn't correlate that
much to park performance. If fractional ownership gets more RVs
on the road, but closes the doors on a marginal factory, I guess
I can live with that.
Obviously, there are kinks in the fractional ownership concept
to work out. The top one, I imagine, is who gets the key weeks
of summer and winter vacations. The line for February will be
short. But fractional shares of vacation condos have worked out
these kinks satisfactorily, so I image it's possible in the near
term.
Personally, I hope this concept flourishes. I think it will
produce more overnight stays, and allow many people who might be
RV users but have been unable to rationalize the purchase, to
finally get out on the road. And into an RV park. I think I'll
go dust off the sign out front.
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If you are
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I look
forward to hearing from you.
Sincerely,
Frank Rolfe
RV
Parkstore.com |
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It was a nice experience using your service to sell our
membership. I have sent a line to your web page to a good friend
or ours that is talking about selling their membership. So
perhaps I generated more business for your service.
Thanks again, your help make it easy to sell the membership.
Dave
RV Park
and Campground Memberships For Sale:
This section of RVParkStore.com is growing quickly. Memberships are being listed and sold quickly. With about
200
memberships currently for sale, this continues to be the prime outlet
to buy and sell campground memberships.
Best of all, when you are selling your membership,
we do not charge you up front to do so. You only pay us if you are
successful in finding a buyer from RVParkStore.com.
Find out more about
Selling your Campground or RV Park Membership
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