What you don’t know can hurt you when it comes to the purchase of your new RV, especially concerning the shocking RV expense statistics that will hit you where it hurts the most: your wallet! There are some easy steps you must take to make sure that you are considering all inevitable costs when creating your RV lifestyle budget. The goal of this article is to help potential RVers avoid some of the common mistakes that first-time buyers have made when purchasing their recreational vehicle.
1. Your RV Budget has holes — do you know what they are? – Investing in a motorhome, travel trailer, or 5th wheel can be a large financial undertaking, so it is important to understand the types of additional costs that come along with RV ownership. There are, of course, the obvious expenses, such as the vehicle price, insurance and regular maintenance. However, it is important to include the costs of mechanical breakdowns into your budget. We never know when we will need to pay for a repair on our motorhome or towable RV, but it is inevitable that the complex mechanical components on your rig will suffer some type of breakdown, and the costs of these repairs can average $300+ per hour. For more information on RV repair costs, skip to #2, Repair Expenses.
Fortunately, there are ways to protect yourself from these costly repair bills. Many RVers choose to self-insure, or set aside a certain amount of money each month to use for RV breakdown costs. Most experts recommend that you take the price of a comprehensive RV Warranty and triple it to determine the amount you should set aside for RV repairs. While this still won’t cover major repairs, such as a blown engine at a whopping $30,000, it will be helpful in the event that your rig suffers more minor failures. Another option is to invest in an RV Extended Service Contract, more commonly referred to as an RV Extended Warranty, which can be a welcome safeguard against the high costs of major breakdowns. This can typically be purchased through your dealership, however we suggest you do your homework before signing on with the first program they offer you. You’ll want to read through several programs and do some shopping around before you make a decision, and one way to do that is to request a free quote for a comprehensive RV Warranty. This will allow you to assess the financial risk and/or gain of maintaining an extended service contract for your motorhome, travel trailer or 5th wheel.
2. Repair Expenses: The Shocking Numbers – Now that we know breakdowns are inevitable, it’s time to get down to the numbers. How much will the average RV repair cost? Some of the most common repairs are for surprisingly high dollar items, such as refrigerators, generators, transmission and drive axle. Luckily, these are items that would be covered under a comprehensive RV Extended Service Contract.
We mentioned $300 per hour above, but how do we arrive at this figure? It might surprise you to learn that the average labor costs across the country can often climb up over $120 per hour, especially in heavily traveled areas, and that’s before the expense of parts comes into play! For buyers looking to gauge how much a part would be, consider that the average cost of parts is about double what you’re paying in labor. That means that if you are paying $100 per hour in labor, you can expect to pay about $200 for the part. Add that up to $300 per hour for a given repair and you’ve got quite an expense on your hands. Ouch!
3. New or used, the probability of RV breakdowns are surprisingly high – So we know that the cost to repair your RV can be very expensive, but how likely is it that your coach will even suffer a breakdown? The numbers might surprise you. Recent industry findings show that over 3 out of every 10 RV’s will need some type of major repair in only their second year in service. By their fifth year, 8 out of every 10 RV’s will suffer a major breakdown, and nearly every RV will need major mechanical repairs by just their eighth year on the road!
4. One road hazard can destroy 3 or more tires–are you prepared for these costs? RV Repairs can range from over $1,000 for a fridge to over $30,000 for a blown engine, but how about the tires that keep it all rolling? Picture this: you’re driving along the road on an exciting RV trip when you hit a road hazard and blow one or more tires. Not only is this an incredibly stressful event, it can also be very expensive. A single RV tire can cost over $300, and it’s rare that only one will blow. Not to mention the cost of rim damage! The average tire and/or wheel blowout claim that we see is over $950. This is another cost that many RV buyers leave out of their budget.
Luckily there are a few steps you can take to eliminate the shock of hefty tire and wheel repair bills. First, it is very important to perform proper maintenance on your tires. This includes checking tire pressure and making sure that they are properly inflated. Also, be sure not to weigh down your RV to a point that is damaging to your tires! Do not surpass your GVWR, or Gross Vehicle Weight Rating. Another safeguard is to purchase Tire and Wheel Protection, which will pay FULL parts and labor to repair or replace your tires or wheels if they are damaged by a road hazard. Get more information on Tire and Wheel Coverage by clicking here!
5. Stop the repair bills! Safeguard your investment with an RV Extended Warranty. Budgeting for the unexpected costs that accompany purchasing an RV can be difficult, but there are steps you can take to ensure that you don’t end up paying for those pricey repair bills! RV Warranties come in a variety of coverage levels, terms and deductible options, so you are able to purchase one that suits your lifestyle. In the event that the major components on your motorhome, travel trailer or 5th wheel suffer a breakdown and need to be repaired or replaced, your RV Extended Warranty would step in to pay the bill! You would only be responsible for your deductible. This is a great way to alleviate unknown stresses on your budget, and we would be happy to provide you with a FREE RV Warranty Quote.
One of our Warranty Specialists will speak with you, the RV Buyer, to determine if an RV Warranty is right for you. Then we will move onto providing pricing on comprehensive coverage. These policies allow you to pay in one lump sum for a set amount of time, during which most mechanical breakdowns would be covered under your RV Extended Warranty, leaving you to pay nothing but one low deductible. This eliminates the fear of inevitable repair bills, and offers peace of mind from the unknown expenses that put pressure on your RV budget. Don’t let repair bills turn your RV dreams into RV nightmares–protect yourself by requesting more information on a cost-effective RV Extended Warranty by clicking here, or providing your information below: