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Everyone knows RVs is very expensive. When buying a new RV, you might find an RV costs you more than you paid for your first home! Although this might come as a shocker, it is true. A lot of people feel surprised the first time they visit an RV lot by how much an RV costs. For some people, their payment for a new RV might cost them more than their mortgage. This makes buying an RV an expensive investment, especially for people trying to live life on a fixed retirement income.
Buying Salvage RVs for Sale
Some people will take out a home equity line of credit to buy an RV. This is an awful idea. It places your home in a vulnerable condition. Additionally, RVs always go down in value over time.
In order to save a lot of money buying your next RV, we recommend that you buy a salvaged RV. A salvage RV is basically the same thing as a totaled car. Often these RVs cost more than 60% of their market value to fix them up. Most salvage RVs are sold by insurance companies so they don’t have to spend the money fixing them up. Later these are sold at an auction to a bidder. I have been to dozens of different auctions. I know that prices vary a bit. If you are willing to take the time to learn, and have patience, you can get very good deal from them. If you are handy with home repairs and car repairs, buying a salvage RV for sale is an excellent investment. These are the reasons why:
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1. A salvage RV is only going to cost a fraction as much as a new one. Sometimes, the damage is mostly cosmetic. If you can live with the damage, you may not even need to do much through the RV. If it is a mechanical problem, you can often find someone to fix it and still pay less than you would have buying one from a dealer.
2. When you buy a salvage RV you can avoid outrageous dealer markups. Dealers will often mark up their RVs 30 to 40%. The reason why you lose up to one-third of the value when you drive an RV from a lot, is because it was never there. You can avoid dealer markups when you buy salvaged RVs.
3. If you are handy, you can turn this into sweat equity. Basically, you can get a much nicer RV than what you originally buy, if you’re willing to put in hard work, cleaning and fixing it up.
4. A salvage RV is a great source of parts. A lot of times you can transfer furniture and appliances very easily from one RV to the other fairly easily. If you need a lot of parts, you may find it cheaper to just buy your own salvage RV, than you have to order all parts from a dealership.
5. Because buying a salvage RV is cheaper than a new one, you can typically pay cash for it. This means you don’t have to worry about qualifying for a loan or having great credit. You don’t have to worry about making a monthly payment, larger than your mortgage. When you pay cash for an item, you instantly have equity. Your RV is an asset and not a liability, the moment you buy it.
6. When you buy a salvage RV and fix it up, it will be worth more than you paid for it. You don’t have to worry about being upside down, or owing more on your RV than you could sell for. For the most part, salvage RVs are easier to sell, because their lower price attracts more buyers.
Disadvantages of Buying Salvage RVs for Sale
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One of the biggest disadvantages to buy salvage RV is that you are going to have a clean title. After you get your RV fixed up, it is not worth as much. It is very important to consider this if you are planning and selling your RV later. Another disadvantage is risk. You need careful selection with what you are buying. If you can’t fix it you are out the money you spent for it plus the money you have put into having it repaired. When possible, try to inspect salvaged RVs thoroughly. This helps to cut down on the risk.
RV Salvage Yards Are A Great Place for Parts
A salvage RV yard is a great resource for parts. Most of these yards are a lot like a junkyard. You can just pick the parts you need for your RV. You can get appliance, wheels, furniture and interior parts for less. If you find a salvage RV that is a newer model, you can easily a great interior of your RV. If you can find a similar model, you can find exactly what you need for hundreds of dollars less than buying it new.
The great news about buying from an RV salvage yard is interior parts will be pretty well protected and in good condition. Before you buy parts, you want to make sure that the pieces fit. If you’re looking for parts together, make sure you bring the measurements with you. Try to match the make and model of the RV parts you are looking for. If you need multiple parts, see if the salvage dealer will give you a discount on them.