SJ-Chris
San Jose, Ca
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Joined: 09/24/2017
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Deb and Ed M wrote:OK - I was one of those "I'd never buy a rental" folks - and now I'm buying one.....LOL! We went to a somewhat local dealer who has a BUNCH of small Cs for sale - come to find out, they are actually a rental company and their contract stipulates the unit needs to have more than 6,000 miles before it can be sold. I got to see a rental that was waiting to be cleaned and re-rented - it was spotless. My salesman said their hefty damage deposit helps convince renters to be careful. So we put a deposit on a 2023 Chateau 22E and will probably pick it up next month when it gathers enough mileage to go to a permanent home :-) For the money we saved compared to a "virgin" unit from other dealers - I'm OK that ours will have been used a bit :-)
Can you share how much money you saved vs buying the same unit brand new? I'm just curious.
Seems like a strange business model that company has...They buy it new and THEY eat the immediate depreciation when they turn around and sell it with 6000 miles. Hard to believe the rental income from 6000 miles worth of rentals would be worth it to them.
-Chris
San Jose, CA
Own two 2015 Thor Majestic 28a Class C RVs
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Deb and Ed M
SW MI & Space Coast, FL USA
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Joined: 06/07/2004
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SJ-Chris wrote:
Can you share how much money you saved vs buying the same unit brand new? I'm just curious.
Seems like a strange business model that company has...They buy it new and THEY eat the immediate depreciation when they turn around and sell it with 6000 miles. Hard to believe the rental income from 6000 miles worth of rentals would be worth it to them.
-Chris
I have no idea how they manage it, but we saved about $20k compared to our local "Big Box" dealer on the same unit. And it's not too stripped down: has dual coach batteries and a 100W solar panel and the "pretty" interior. Downside: no power driver's seat.
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IAMICHABOD
Sunny So Cal
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Joined: 12/12/2011
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Deb and Ed,Welcome to the Former Rental Owners Club great to hear you are no longer one of those "I'd never buy a rental" folks.
I will add you to the long list of owners,you will be #143 ![[image]](https://www.picgifs.com/emoticons/smileys-and-emoticons/thumbs/smileys-thumbs-951446.gif)
I hope this RV will be of great help to you and Ed and also hope he is doing well and will be feeling better soon.
Be well and have a great camping season with this new to you RV.
2006 TIOGA 26Q CHEVY 6.0 WORKHORSE VORTEC
Former El Monte RV Rental
Retired Teamster Local 692
Buying A Rental Class C
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IAMICHABOD
Sunny So Cal
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Joined: 12/12/2011
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SJ-Chris wrote:
Seems like a strange business model that company has...They buy it new and THEY eat the immediate depreciation when they turn around and sell it with 6000 miles. Hard to believe the rental income from 6000 miles worth of rentals would be worth it to them.
-Chris
To touch on this a bit,this business model was in use back in 2012 by Road Bear. They were selling 1 to 2 year old RVs with low mileage.They were acquired by a New Zealand company, Tourism Holdings Limited.
Here is an example
Their business model was what they call flex fleet they buy in large lots across a peak season then are sold in 9-18 month period opposed to the 5-6 year traditional model.
They went on to buy up many other RV rental Companies in New Zealand and Australia UK and Europe. Most recently in 2017 El Monte RV then Sept of this year Apollo/Canada Dream an Australia company,They also had been using this model for some time.
Apollo had a lot near me and in 2017 I visited their lot they had about 100 units and about half were for sale I was amazed that the were all about 1-2 years old and low mileage.
Here is a picture of that lot
I don't know what company that Deb and Ed bought from but they may be affiliated with one of these. We may find out.
From my recent research it seem that Cruise America follows the old model,buying purpose built RVs and selling them with high mileage and 4 or more years old.
Where the others buy production models,like mine is,and selling them newer and with low mileage.
It seems to be working, they are just getting bigger.
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Lwiddis
Southern California :(
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I talk to those I see that bought them. Most are very happy.
Winnebago 2101DS TT & 2022 Chevy Silverado 1500 LTZ Z71, WindyNation 300 watt solar-Lossigy 200 AH Lithium battery. Prefer boondocking, USFS, COE, BLM, NPS, TVA, state camps. Bicyclist. 14 yr. Army -11B40 then 11A - (MOS 1542 & 1560) IOBC & IOAC grad
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SJ-Chris
San Jose, Ca
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Joined: 09/24/2017
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Deb and Ed M wrote:SJ-Chris wrote:
Can you share how much money you saved vs buying the same unit brand new? I'm just curious.
Seems like a strange business model that company has...They buy it new and THEY eat the immediate depreciation when they turn around and sell it with 6000 miles. Hard to believe the rental income from 6000 miles worth of rentals would be worth it to them.
-Chris
I have no idea how they manage it, but we saved about $20k compared to our local "Big Box" dealer on the same unit. And it's not too stripped down: has dual coach batteries and a 100W solar panel and the "pretty" interior. Downside: no power driver's seat.
Nice work Deb & Ed...sounds like you got a good deal (saving ~20k). I hope your RV gives you years of trouble free travel. Happy Camping! -Chris
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Grit dog
Black Diamond, WA
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Joined: 05/06/2013
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Deb and Ed M wrote:SJ-Chris wrote:
Can you share how much money you saved vs buying the same unit brand new? I'm just curious.
Seems like a strange business model that company has...They buy it new and THEY eat the immediate depreciation when they turn around and sell it with 6000 miles. Hard to believe the rental income from 6000 miles worth of rentals would be worth it to them.
-Chris
I have no idea how they manage it, but we saved about $20k compared to our local "Big Box" dealer on the same unit. And it's not too stripped down: has dual coach batteries and a 100W solar panel and the "pretty" interior. Downside: no power driver's seat.
You guys have a used car lot, right? I could see a couple reasons they do this.
Either, A. This is in anticipation of a declining market and they're trying to off load a bunch they can get cheaper next year (although RV season is just ramping up in the F L A).
Or B. They're a used RV dealer doing a similar thing as Ichabod showed. Great prices to buy new in bulk. Can't re-sell as a new car dealer for the Brand. Rentals are more local or lower miles (guessing most F L A vacation renters aren't driving the RV to California, but rather for a loop around the area and a week parked at Disney with the kids). They get more $ per mile revenue than what one may consider a typical rental, like take the family to Mt. Rushmore and Yellowstone from, wherever. So they make great $ per mile and then dump 'em quick while they're still literally "like new."
(Very similar to what I used to do with our personal vehicles when I had time, the economy wasn't weird and the internet didn't exist so every seller didn't "know what they got" and every buyer wasn't a wannabe Richard Rawlins. For years, my wife drove a new ish truck basically for free. Buy used low mile truck, only for a good deal, put it up for sale shortly thereafter for more money. Sell in 6 months or so before the miles went up much and no value lost, repeat as soon as another vehicle was found. Note this partly only worked due to the State's cheap title and tags and no sales tax implications on private party used vehicle purchases.)
2016 Ram 2500, MotorOps.ca EFIlive tuned, 5” turbo back, 6" lift on 37s
2017 Heartland Torque T29 - Sold.
Couple of Arctic Fox TCs - Sold
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Deb and Ed M
SW MI & Space Coast, FL USA
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Joined: 06/07/2004
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IAMICHABOD wrote:
I don't know what company that Deb and Ed bought from but they may be affiliated with one of these. We may find out.
I didn't know if I was allowed to say who we bought from (although we have no affiliation other than "customer") but we went to Krenek RV in Coloma, MI (tell C.J. that Deb and Ed say "Hi!"). I suspect their relatively close proximity to Chicago gives them plenty of rental business!
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Deb and Ed M
SW MI & Space Coast, FL USA
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Joined: 06/07/2004
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Grit dog wrote:
Or B. They're a used RV dealer doing a similar thing as Ichabod showed. Great prices to buy new in bulk. Can't re-sell as a new car dealer for the Brand. Rentals are more local or lower miles (guessing most F L A vacation renters aren't driving the RV to California, but rather for a loop around the area and a week parked at Disney with the kids). They get more $ per mile revenue than what one may consider a typical rental, like take the family to Mt. Rushmore and Yellowstone from, wherever. So they make great $ per mile and then dump 'em quick while they're still literally "like new."
^^^ This^^^
Our salesman C.J. explained that folks who want to purchase, put down a deposit, then grab the first unit (they are all identical) that either "ages out" or racks up 6,000+ miles. They had a nice 23U model on the Chevy chassis at a great price, but Ed is just a Ford guy :-) and I don't care because the floorplans were almost identical.
And yes, we own a small mom/pop used car lot, so we "get" how buying at wholesale is a blessing :-)
The best part - Krenek RV is in the middle of nowhere, next to I-94. No fancy parking lot - the RV are out in a nicely-mowed field. The folks are friendly, there was NO pressure; they know their products. They explained how the program works openly - mass buying results in lower prices, which is what all the big dealers plan on - but Krenek doesn't have a dozen+ dealership locations to support
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IAMICHABOD
Sunny So Cal
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Well it seems that you have it all dialed in. It is too bad you did not go with the one on Chevy Chassis that would give you a much smoother ride and a quieter and more spacious cockpit area making it much easier to access the house area,bathroom etc while there.
If you get a chance try both and see the difference when getting from the cockpit area to the house part.
As you can see I am a bit biased on this but I am a happy camper ![[emoticon]](http://www.coastresorts.com/sharedcontent/cfb/images/biggrin.gif "biggrin")
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