TCO: why we deciced not to get a Sportsmobile (yet :-)

[haven]

There's no need to pick on Sportsmobile here. All new vehicles (with the possible exceptions of MINI, Wrangler and BMW) will depreciate to less than half their original purchase price in 5 years. If you can't afford the loss, look at less expensive alternatives, including used vehicles. N'est ce pas?

[billwilson]

There's no need to pick on Sportsmobile here. All new vehicles (with the possible exceptions of MINI, Wrangler and BMW) will depreciate to less than half their original purchase price in 5 years. If you can't afford the loss, look at less expensive alternatives, including used vehicles. N'est ce pas?

Holds true for all autos, but me thinks they lose starting when you leave the lot

[cwsqbm]

There's no need to pick on Sportsmobile here. All new vehicles (with the possible exceptions of MINI, Wrangler and BMW) will depreciate to less than half their original purchase price in 5 years. If you can't afford the loss, look at less expensive alternatives, including used vehicles. N'est ce pas?

BMW, Wranglers and MINIs depreciate, just slightly slower than other cars. The only things that don't go down in value much are desirable vehicles that halted production before demand was satisfied, like Land Rover Defender 110.

[superjunkman]

We took another pass at getting a Sportsmobile. This time is was more serious than ever. But when I ran the numbers, we just could not justify it.

I ran some rough Total Cost of Ownership (TCO) numbers on both new and lightly used. They came in much higher than expected and scared us away, for now. One day, when we are not working full-time and we can take a couple of years to play in the Sportsmobile, it might make sense, but not now.

I thought others might find the calculations interesting. I made a lot of assumptions and took quite a few short-cuts, so one could easily argue with the approach, but I think that regardless of the details, the overall picture is sound.

Overall cost: $110K new, $77K used, includes WA state sales tax. (E350 V10, RB50, penthouse, 4x4, plus some extras but not too many)

New:
Depreciation: $5,500/yr $458/mo
Interest/LOC: $4,400/yr $367/mo
Fuel: $2,333/yr $194/mo
Other: $1,167/yr $97/mo
Insurance: $632/yr $53/mo
Registration: $300/yr $25/mo
Total: $14,332/yr $1,194/mo

Used:
Depreciation: $5,133/yr $428/mo
Interest/LOC: $3,080/yr $257/mo
Fuel: $2,333/yr $194/mo
Other: $1,167/yr $97/mo
Insurance: $608/yr $51/mo
Registration: $300/yr $25/mo
Total: $12,621/yr $1,027/mo

Depreciation: I assumed 20 years for new, 15 years for used, value $0 at end.
Interest/Lost opportunity cost: Some money may come from loan, some from savings. I either pay interest on the loan or I miss out on earnings from savings. Assume 4%/year (non-depreciated). This is a real SWAG but I think it is fair.
Fuel: 7K miles/year @ 12mpg & $4/gallon
Other: assume repairs and maintenance cost half the fuel cost
Insurance: I got quotes from my insurance company

Things that jumped out for me:
* Overall, not a huge savings for used - might as well get exactly what we want new.
* The yearly cost is way too high for casual use. Whether you calculate cost/mile or cost/day spent in the Sportsmobile, it just does not cut it. For that kind of money we could take luxury treks in Bhutan or a cruise to Antarctica.
* The biggest costs by far are depreciation/LOC -the bottom line is that dumping $100K+ into a vehicle is seriously expensive.

We are now looking for a hard-sided pop-up trailer for the Pacific Northwest monsoon season and will tent camp otherwise. One day maybe, we'll just say screw the TCO numbers, but not yet.

Cheers,
Chris.

I mean this in the most unoffensive way I can. If this is how you think about things I don't know that you would be the type of person that would be capable of enjoying a SMB to the fullest. I didn't have a 100k super rig like you're derscribing but I did beat the brakes of mine in Baja on a regular basis. If you can afford it get it if not don't, but don't get to deep into things that are supposed to be fun if they require that much pre-meditation.

[southpier]

and that 60$ meal you had last night ...

[UHAULER]

and that 60$ meal you had last night ...

You have to pay to get rid of today.....

[JRhetts]

Edit:
...
The point i am trying to get across is
waiting to save a few bucks or keeping the comfort level lower
by having a older or more cost effective rig, may NOT be worth it in the long haul.....

...
ALL these are a non issue if you cant make the trip

Just my Two Satang

bw

Well put, Bill. And I also very much liked Edroids addition.

I calculated and posted the actual 4-year useage costs of our first EarthRoamer elsewhere on this Forum; came out to be about $40/day, a period of heavy and regular travel for us [living in it for as much a 2-3 mo at a time]. This eventually led to purchasing a Fuso-FM based rig.

The challenge and anxiety about significantly redesigning and rebuilding the house [+ minor mods to the truck itself] has turned into one of the most satisfying accomplishments of my adult life. Put a price on a 3-month solo trip in the Yukon this spring and summer to the most remote places a 23,000# 4WD vehicle can go, with only the exhaust brake falling off the truck [quickly and easily bolted back in place before anything broke] and having 3 cabinet latches break and have to be replaced by spares I was carrying with me. I loved the trip and was deeply rewarded by the pleasure of my design and build out.

The total cost of the rig may not be "rational", but then enjoyment and adventure aren't either! Different folks are satisfied by different things. One of my best friends is most satisfied with a cheap acquisition, I more by the quality and functionality of something.

John

[mudmony]

I am suprise at the scrutiny of how people spend thier own $$$$

[haven]

Just wait, mudmony, you could be next to go under the microscope...

[mudmony]

We took another pass at getting a Sportsmobile. This time is was more serious than ever. But when I ran the numbers, we just could not justify it.

I ran some rough Total Cost of Ownership (TCO) numbers on both new and lightly used. They came in much higher than expected and scared us away, for now. One day, when we are not working full-time and we can take a couple of years to play in the Sportsmobile, it might make sense, but not now.

I thought others might find the calculations interesting. I made a lot of assumptions and took quite a few short-cuts, so one could easily argue with the approach, but I think that regardless of the details, the overall picture is sound.

Overall cost: $110K new, $77K used, includes WA state sales tax. (E350 V10, RB50, penthouse, 4x4, plus some extras but not too many)

New:
Depreciation: $5,500/yr $458/mo
Interest/LOC: $4,400/yr $367/mo
Fuel: $2,333/yr $194/mo
Other: $1,167/yr $97/mo
Insurance: $632/yr $53/mo
Registration: $300/yr $25/mo
Total: $14,332/yr $1,194/mo

Used:
Depreciation: $5,133/yr $428/mo
Interest/LOC: $3,080/yr $257/mo
Fuel: $2,333/yr $194/mo
Other: $1,167/yr $97/mo
Insurance: $608/yr $51/mo
Registration: $300/yr $25/mo
Total: $12,621/yr $1,027/mo

Depreciation: I assumed 20 years for new, 15 years for used, value $0 at end.
Interest/Lost opportunity cost: Some money may come from loan, some from savings. I either pay interest on the loan or I miss out on earnings from savings. Assume 4%/year (non-depreciated). This is a real SWAG but I think it is fair.
Fuel: 7K miles/year @ 12mpg & $4/gallon
Other: assume repairs and maintenance cost half the fuel cost
Insurance: I got quotes from my insurance company

Things that jumped out for me:
* Overall, not a huge savings for used - might as well get exactly what we want new.
* The yearly cost is way too high for casual use. Whether you calculate cost/mile or cost/day spent in the Sportsmobile, it just does not cut it. For that kind of money we could take luxury treks in Bhutan or a cruise to Antarctica.
* The biggest costs by far are depreciation/LOC -the bottom line is that dumping $100K+ into a vehicle is seriously expensive.

We are now looking for a hard-sided pop-up trailer for the Pacific Northwest monsoon season and will tent camp otherwise. One day maybe, we'll just say screw the TCO numbers, but not yet.

Cheers,
Chris.

sorry had to comment again, with this process of thought, one will be stuck on the couch crunching ###s, until its to late,,life depreciates