New programs with leaseback, timeshare and consignment arrangements are offering RV enthusiasts options for outright ownership or rental, according to the Wall Street Journal.
Rental company Bates International Motor Home Systems Inc. is among the firms offering the consignment option, the Wall Street Journal reported on Sept. 30.
Under the program, RV owners can turn their rigs over to Las Vegas-based Bates, which then markets the units as if they were part of Bates’ 400-unit fleet, which is available at 18 franchises across the U.S.
The Wall Street Journal interviewed one RV owner who said his motorhome gets rented once every three to four weeks for a week to 10 days at a time, and he gets 50% of the proceeds, which ranges from $1,200 to $1,450 a week, minus maintenance and insurance.
Thus, in some cases the consignment option
reduces the cost of RV ownership and some months can make money for the owner.
Others who find they can no longer afford the RV lifestyle, are using Bates’ consignment program as an alternative to selling their rigs on the used market at a loss, the newspaper reported.
Roadshare America Inc., West Bend, Wis., is offering timeshares. Under its program, for example, 10 households invest $20,000 each in a $200,000 motorhome. Then, each household can use the motorhome for up to 36 days a year for three years.
At the end of the third year, the motorhome is sold and the timeshare investors get some of their money back.
The Leaseback is another option that has grown in popularity during the last 10 years as the costs of motorhomes have increased, according to Larry Lenamond, president of American Dream RVs Inc., Austin, Texas, who was interviewed by the Wall Street Journal.
Many RV dealers also offer leaseback programs, under which households buy RVs, then have dealers or rental companies find rental customers for their rigs.
The amount of the fee the dealer or rental company collects through a leaseback program varies, although 50% of the rental proceeds is most common, according the Wall Street Journal.
Upkeep and repair expenses are the responsibility of the RV owners.
All About Fun RV Rental in San Diego lets leaseback customers keep 70% of their rental proceeds, but it doesn’t provide storage for the units.
Those who want to participate in the leaseback program at Adventure RV Cos. of Indianapolis must purchase the units from the company, although at a discount.
The Wall Street Journal interviewed one Adventure RV customer who has three motorhomes in the leaseback program, which he views as an alternative to investing in the stock market or real estate. Plus, he always has a motorhome available for his own use.