RVers CHOICE: GAS VERSUS DIESEL POWER?

by Bob Gummersall

[Ed Note 01/2014: This article was first published many years ago, when the cost of fuel and the cost of money were quite different than in today's economy. However the logic of what's presented here has not changed. Note especially the comments in the "Summary" at the end if you want a clear presentation of the author's view. Incidentally, he is still furnishing a revised spreadsheet to readers that so request as noted at the bottom.]

INTRODUCTIOHave you seen guys wandering around the campground early in the morning with a cup of coffee in their hands? What do you think they are doing? They are checking out each rig and mentally justifying their own personal RV or dreaming about that new rig. These are the major questions to answer:

-- Diesel or Gas?
-- Trailer, Fifth Wheel, Class C, Class B, Class A, Toad, etc.?
-- Wheel Base, Slides, new or used, etc.?

These age old dilemmas can only be evaluated by looking individually at you own situation, means, and desires. Like our lifestyle, RV choices offer the same freedoms that we enjoy pursuing our RV deams This article does not address the EGO factor but does try to look at the choices from a financial point of view. This evaluation requires making some assumptions and I have chosen a scenario of a typical heavy use of an RV. This case assumes that 40,000 miles are driven during 4 years with one half moving the "home" part of the RV and the other half in trips to the grocery store, sightseeing, medical appointments, and like driving. We assume that this is a snowbird, living in the RV about the time and having a home base living in the RV 100 plus days per year and covering a lot of country. Lighter use yields much higher cost per day and per mile, but lower overall cost. Heavier use yields lower cost per day and per mile, but higher cost overall. Full timers can plug in their numbers and get an approximate cost from the model and then add their own campground fees to get a number that will tell you your cost of housing.

The reasonable scenario to compare this snow bird saga would be a situation where a couple, makes several trips in airplanes, boats, trains or cars; live in motels or hotels; use rental cars; and eat out for an equivalent number of days. I leave it up to you to calculate what this alternative scenario might cost. You must also add the cost of groceries and camping to the numbers shown in the charts to complete the comparison. Here is the fill in the blank form to complete your evaluation.

RV VERSUS NON-RVTravel Entirely by RV Other Forms of Travel (Air, etc)

Total Cost from table $_______________ Transportation $____________

Camping Cost _______________ Motel/Hotel ____________

Food _______________ Dining ____________

Total ________________ ____________

Back to the assumptions for the RVing. The cost of ownership is affected by financing or tying up hard earned capital. I have selected the capital method and have used 6% after tax return as the "Cost of Money". The ownership costs will be quite a bit higher for financed rigs, even though in some cases the interest can be considered tax deductible for primary or secondary house. Check with your tax accountant for this information.

Difficulty arises when comparisons are made because ego biases rational thought. I have chosen to look only at values estimated from references like the NADA and Kelley Blue Book references. I think you will find the comparisons interesting and will lead to interesting discussions with your significant other. I have owned three Class A motorhomes, tow truck campers, and several tents. I have also driven many miles behind the wheel of a passenger bus. My actual experience allowed me to perform reasonableness tests for the data presented herein. With that experience and published performance information from Trailer Life Magazines, Motorhome Magazine, manufacturers sales brochures and others, I will attempt to compare operating and ownership costs and then do some summary comparisons.

The Purchase price used is slightly lower than the MSPR to estimate the actual purchase price, since we all know that the asking prices for RV's at least 20% higher than the street price. We all know that you don't very often get the book price when you sell a used coach, but again I used a number that would represent closer to the actual sales price of a used vehicle. I tried similar wholesale new and trade-in prices and they yielded similar numbers. Using this approximate real market value procedure somewhat balances the low cost of money figure that I am using. I have chosen a 6.5% after tax cost of money.

If you don't like the assumptions that I have used, then by all means use your own, but don't email me and tell me I'm wrong because these are my estimates. I respect your right to make you own estimates. You will find an Excel spread sheet attached to this document that you can have your fun with.

COMPARISON OF RVSI will start with a car/van towing a travel trailer and end up with a luxury Class A motorhome with all the logical steps in between. The assumptions below apply to all type of RV's

Since completing this article, I have created a spreadsheet which can help any RVer compare the cost of gas versus diesel using various types of RV types. By putting in your own estimates concerning initial cost, fuel price, etc., it provides you with a tool to make a realistic assessment of what the economic impact of various purchase options you might be considering. The spreadsheet is in Excel (Mac) format, and I'd be pleased to send it to you as an email attachment on request. Just drop me a line.

This has been fun to do and I hope you enjoyed reading it.

Drive Safe and Legal. Bob

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