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Old 02-28-2010, 08:40 AM   #1
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Depreciation of SMB's ?

Greetings,
I have been shopping SMB's for over a year now and have decided to buy one that is near me. I am wondering what current owners think the general rate of depreciation is on a 2005 EB 50 4x4 etc...
I did get numbers from SMB themselves, but I would like to compare what they tell me with some real world experience. Anyone have any educated input? I am looking for loss percentages.
Thanks,
Ripper
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Old 02-28-2010, 09:46 PM   #2
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Re: Depreciation of SMB's ?

Ripper,

If I had to guess, you will be hard pressed to get a solid answer here. The population you need the input from are those that have actually sold theirs. Most of them are no longer active here.

The rest of us tend to spend our time figuring out how to spend, I mean "invest" more on our vans. I can't speak for anyone else, but I justify it to myself be assuming I will keep it forever and never realize the "loss".

Of course I've never owned a car for longer than six years. But that doesn't stop me from convincing myself that this time will be different...
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Old 03-01-2010, 07:36 AM   #3
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Re: Depreciation of SMB's ?

If you are looking for the value of a unit for the bank. I can tell you that they will only value the van as a van not an SMB. That means a huge depreciation as far as the Bank value for a loan goes.
Most time people are always up grading there SMB so they have alot of owner value. if your trying to sell one its only worth what you can get for it. I don't believe there is any set pricing what so ever. For example A guy walks in and buys a new SMB from Sportsmobile West and he spends $90K he owns it a year you go and try to buy it but need to finance. Banks don't care what he paid for it or what you think its worth you would need to finance only what the Van is worth and pay the rest in cash as a down payment to get it in to a finance able structure, and that amount could be large.
I could be wrong.

I hope that helps

Ron
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Old 03-01-2010, 08:57 AM   #4
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Re: Depreciation of SMB's ?

Guy buys an SMB for $116K and sells it 6 months later with 6K for $95K... that's the only real world example I know of.

I cringe whenever I see a 2005 for less than 60K and smile whenever I see one for more than 80K. They are so all over the board and it is often difficult to determine what the new price was anyway.

If you're doing it for tax purposes I'd start by comparing the depreciation of one of those giant luxury Class As, a second home, and a normal vehicle. I would like to know the answer as well.
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Old 03-01-2010, 05:29 PM   #5
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Re: Depreciation of SMB's ?

Ya, it is frustrating. USAA goes by this NADA site, and they value a 2005 EB50 with all the bells and whistles at 45k, and that is all they will make a loan for.
To let you know, I was told by SMB that as far as depreciation goes, figure on a 15% hit for each of the first 2 years and then a 6 to 8% hit for each of the next 3 years. They went on to say, and this is a quote...
An average Sportsmobile will be worth 50 to 55% of original value after 5 years. Hope this helps.

I was surprised to see those figures. I thought it would look a little better on paper than that.
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Old 03-01-2010, 06:13 PM   #6
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Re: Depreciation of SMB's ?

Interesting. If USAA goes by NADA for the value for a loan, I wonder what happens if you then try to insure it with USAA for the full value? (i.e. Vehicle Value + Custom Parts Value)
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Old 03-01-2010, 06:38 PM   #7
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Re: Depreciation of SMB's ?

Quote:
Originally Posted by LiveFreeOrTDI
Interesting. If USAA goes by NADA for the value for a loan, I wonder what happens if you then try to insure it with USAA for the full value? (i.e. Vehicle Value + Custom Parts Value)
NADA in my experience is totally wrong about SMBs. Sure, great they value it at 45K, but it's for sale for $85 and others just like it are selling for similar prices... it just doesn't fit the real world.
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Old 03-01-2010, 06:56 PM   #8
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Re: Depreciation of SMB's ?

This is something that I will have to look at this year for my 06. I was told I could only get full replacement value on a new vehicle. I would think you can insure it for a fraction of full value but the premium might be high. For that matter, I have yet to hear of anybody that has totaled a SMB that was insured as full replacement value and got the full replacement. I'm sure it happens in the RV world, just that I've never seen it action on a Sportsmobile. I'm paying extra for that kind of insurance and hope I haven't just thrown my money away, but glad I'm not the one putting it to the test.
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Old 03-01-2010, 08:31 PM   #9
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Re: Depreciation of SMB's ?

Ripper,
I, too have USAA for my bank and am in the process of purchasing a SMB. With the same concerns, I called USAA and asked to speak with an underwriter. Instead one of the bank reps acted as a "middle man" and spoke with the underwriters for me. I walked them through the original value step by step (I had the original price sheet) and was approved. It was an 02' EB50 4x4 with 70K+ miles and the purchase price I used was $60K. They will loan 80% of the value and assured me that everything was in order. I ended up not purchasing it for for other reasons, but felt solid on the process. I'll keep you posted on my end as I'm close to a deal on one and how smooth the process is. Let me know if you hear anything different.
Jeff
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Old 03-07-2010, 08:52 PM   #10
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Re: Depreciation of SMB's ?

Quote:
Originally Posted by Ripper
Ya, it is frustrating. USAA goes by this NADA site, and they value a 2005 EB50 with all the bells and whistles at 45k, and that is all they will make a loan for.
To let you know, I was told by SMB that as far as depreciation goes, figure on a 15% hit for each of the first 2 years and then a 6 to 8% hit for each of the next 3 years. They went on to say, and this is a quote...
An average Sportsmobile will be worth 50 to 55% of original value after 5 years. Hope this helps.

I was surprised to see those figures. I thought it would look a little better on paper than that.
USAA Financed ours... The problem with USAA was that the NADA (which they do use) does not take into consideration the 4x4 conversion. We sat with USAA on the phone.. The KBB website, NADA website and Sportsmobile website... walked the underwriter through the valuation (pointing out EVERY option/add) and they valued our 2002 for about that.

Not sure if they can cross reference values/loans in their system but is should be in there
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