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New Motorhome through Leaseback Program what you think?


usacamper

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We are had an offer they call this RV Rental Investment Program the RV is brand new and almost $10.000 cheaper from any dealer.

We research this well and could not find a better price.

The only request was we had have to placed into are rental fleet for a minimum of 6 months to 1-year - we could used if it is not rented.

We talked to other owner the was very happy so that a good way to go? And the company made us an guarantie a minimum extra income of $5000 each year.

Would be great to get some feedback.

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Few things to think about, that income would more than likely be taxable? if it is rented most of the time you would have little time to enjoy it or make plans at all. Who pays for any excessive wear and tear. any mileage restrictions? just too many unknowns for me. just my two cents

 

bob

Retired Army Bob & Sherry, Border Collie Misty. Cincinnati, OH 2014 Tour 42QD. 2015 GMC Canyon, Blue Ox Aventa Tow Bar, 2001 Honda Gold Wing, SMI Air Force Onesmile.gif

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First, let me welcome you to the Escapee forums! We love to have new folks join us here and look forward to ongoing discussions in the future. I notice that you are from Yucaipa, CA and so we have some connection. Pam (my wife) grew up in Redlands and still has a lot of family there and we will be in Yucaipa Regional Park for a week in March! :)

 

On the lease back contract, I think that it is worth consideration, especially in view of the 6 month minimum as it does mean that you could drop out after that time if you are not satisfied. The issues that others have brought up are important to consider and good questions to bring up to the dealer before you commit. There are a few other questions that I would have, such as can you choose your own lender and if so you need to discuss the arrangement with that lender. I suspect that many RV financing contracts may prohibit any commercial use of the RV, which this is bound to be. I suspect that the dealer does provide insurance for the rental, but discuss that also to be sure that if he does so, will that same insurance cover it when you use it, or must you also have a policy?

 

I think that if this were me and I were still interested after these questions have been covered, I would still want to take the lease & purchase contracts to an attorney to get his opinion as well. I don't know of anyone presently on the forums who has ever done this, but there was a contributor who had done this with more than one RV over an extended period of years who was part of the forums and he was very much an advocate of this type of purchase. Most of us here have not done this sort of purchase nor would we be willing to do so, but that does not mean that it won't work for you. Just be careful in examining things and treat it as you would any business investment.

Good travelin !...............Kirk

Full-time 11+ years...... Now seasonal travelers.
Kirk & Pam's Great RV Adventure

            images?q=tbn:ANd9GcQqFswi_bvvojaMvanTWAI

 

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hello thanks for all you question - wow

to the first question

income would more than likely be taxable? yes it is but i deduct Intrest - Deprecitaion - Reparis - Storage we have to show the income on Scheudel E

here one example, if we began renting it on July 1st, and your yearly Storage cost ( smile ) is $1200, then $600 would be our deduction for rental purposes.

Who pays for any excessive wear and tear? there is no excessive wear and tear we looked tow other Motorhomes form the Company and they are in mint condition they dont rent local only oversea customer - the only ware we could see is Tire. If some thing gets damage the renter have to pay for this and the Comany will replace any damage and put this back in original condition.

Renter have to pay a credit card depostit.

any mileage restrictions? they told us not to rent over 25k if we want to sell this after 2 Years.

 

aunut question:

It's in your name and it's leased? yes

 

Insurance? MBA

What if a renter damages it? he have to pay for the damage

 

Phaeton10 question

Some one set up a meth lab and get caught, - they only rent to peopel oversea Europe and the have trakking divice. - silly coment from you

 

Kirk Question

World is small Kirk - we love Redlands - we could use our own lender they told us and insurance wise they use MBA Insurance so we could travel aslo and are corvered. We feel in the moment good about this - we asked the other owner and they very very happy.

We will look at the contracts- our son is an lawyer so he will tell us if something off or not ok.

 

we will know in coupel days.

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Not wanting to be snotty, but you need to buy an RV that you can afford on your own. From the way we have seen rental folks treating a rental, no way would we consider renting out our RV.

 

Why not look at a higher quality 3 to 5 year old used RV. Less depreciation and the bugs are worked out.

 

Another point to ponder is if the leasing is such a great deal, why doesn't the delaer just lease the RV directly and he can own them and deal with the depreciation write off and such.

 

Ken

Amateur radio operator, 2023 Cougar 22MLS, 2022 F150 Lariat 4x4 Off Road, Sport trim <br />Travel with 1 miniature schnauzer, 1 standard schnauzer and one African Gray parrot

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- we could use our own lender they told us and insurance wise they use MBA Insurance so we could travel aslo and are corvered. We feel in the moment good about this - we asked the other owner and they very very happy.

We will look at the contracts- our son is an lawyer so he will tell us if something off or not ok.

It does sound as though you have pretty much decided to do this transaction so please do keep folks here informed of how things go over the next year or so. Be sure that the lender you finance the RV with is aware of the lease-back arrangement as they could recall the loan, forcing you to pay the loan off early if they have a prohibition of commercial use. I do know that this has worked well for some people so am very interested to hear how this works out.

Good travelin !...............Kirk

Full-time 11+ years...... Now seasonal travelers.
Kirk & Pam's Great RV Adventure

            images?q=tbn:ANd9GcQqFswi_bvvojaMvanTWAI

 

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also make sure of the dealer that is doing all the work for you. what happens if they go out of business overnight? how is their business rating? You have your vehicle invested, what do they have invested?

Retired Army Bob & Sherry, Border Collie Misty. Cincinnati, OH 2014 Tour 42QD. 2015 GMC Canyon, Blue Ox Aventa Tow Bar, 2001 Honda Gold Wing, SMI Air Force Onesmile.gif

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They've been doing this for decades in the Virgin Islands and other areas with yachts. Most of the bareboat charters are owned by people who have put the yacht into the rental pool. In general, the charter company pays for maintenance and give you a cut of the rental plus you get a tax write-off (it *is* a business, after all... but you have to follow the rules for rentals and not use it too often). We knew a lot of yachties who had paid for their boats this way.

 

But it's better if you're not quite ready to use the boat (or RV). If you're 3 or 4 years away from cutting loose, on the other hand, this might be worth looking into.

 

WDR

1993 Foretravel U225 with Pacbrake and 5.9 Cummins with Banks

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WDR is correct. If you do a search you will find many places which offer this lease back arrangement. While I don't personally know anyone who is doing it, there must be someone who does so to keep them in business. a few examples:

Consign/Rent RV Dallas Great RV Outdoors B&B RV

Good travelin !...............Kirk

Full-time 11+ years...... Now seasonal travelers.
Kirk & Pam's Great RV Adventure

            images?q=tbn:ANd9GcQqFswi_bvvojaMvanTWAI

 

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It does sound as though you have pretty much decided to do this transaction so please do keep folks here informed of how things go over the next year or so. Be sure that the lender you finance the RV with is aware of the lease-back arrangement as they could recall the loan, forcing you to pay the loan off early if they have a prohibition of commercial use. I do know that this has worked well for some people so am very interested to hear how this works out.

the lender know this they are fine with this

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Not wanting to be snotty, but you need to buy an RV that you can afford on your own. From the way we have seen rental folks treating a rental, no way would we consider renting out our RV.

 

Why not look at a higher quality 3 to 5 year old used RV. Less depreciation and the bugs are worked out.

 

Another point to ponder is if the leasing is such a great deal, why doesn't the delaer just lease the RV directly and he can own them and deal with the depreciation write off and such.

 

Ken

but if we buy higher quality I pay way more and we looked different motorhomes they are almost build the same - with leasing we could not rent out

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also make sure of the dealer that is doing all the work for you. what happens if they go out of business overnight? how is their business rating? You have your vehicle invested, what do they have invested?

we dont buy this form a dealer is a rental company they over 12 years in business and the rental company get this direct from the manufacture

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Everyone needs to keep in mind that 'rented' RV's are not just for tourists hell bent on seeing as much as they can in a short period of time. For example many entertainers or sports folks rent motorhomes for short periods. Some of the large rental/lease companies have nothing but Prevosts and a whos who list that would make you blush. Even NASCAR folks rent/lease their RVs.

 

We need to be careful about 'generalising'.

 

regards

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