Real Cost of Conversion Van Ownership
Conversion van buyers often fall into two extreme categories: one, are the van customers who do virtually no homework before going out to negotiate a price on a new conversion van. Two, are are those who have done so much research that they think they know exactly how much they should pay, and have set so many other parameters on their purchase of a new conversion van that they've boxed themselves into a position where no dealer can fully satisfy them.
Most conversion van buyers fall somewhere in the middle—and all too often they base their van purchase decision solely on how large a down payment is required and how high the monthly payments are. In effect, they've narrowed their focus to just three factors: the profit the dealer will make, the value of their current van or vehicle as a trade-in, and the interest rate on the conversion van loan.
While monthly payments are certainly important in any family budget, they're a poor reflection of the true cost of owning a new conversion van. You can't know how much your conversion van or truck really costs until you finally sell it. Only then can you look back on your purchase and accurately determine the full cost of conversion ownership. But you can get a reasonable idea of that cost if you remember to factor in your van buying decision the following costs.
DEPRECIATION
See if this sounds familiar: "I love my new conversion van, and I'm going to own it for the next decade, so depreciation doesn't really matter to me. " Although many people say they intend to own their new vans until the earth is depleted of fossil fuels, the reality is that most of us trade more frequently than we initially intend to. The average new conversion van sold today is going to be on a used conversion van lot in less than five years.
It's true that if you keep your conversion van for 10 years, depreciation isn't critical. But if you keep the van for less time, how much it depreciates is likely to be the most important cost factor when you buy your next van or vehicle. That's because it's usually the resale value of one van that ends up as the down payment for the next one. A conversion van that retains much of its value will thus reduce your future costs.
How can you tell if the conversion van you're thinking of buying will really have the outstanding resale value claimed by your dealer? A good rule of thumb: If the conversion van is a hot seller new, it will likely be a hot seller used. The Internet offers many sources of information on conversion van trade-in values, but a better way of assessing the market for a given used conversion van is to check the classified pages of your local newspaper. And then don't be surprised if you find that most of the conversion vans listed there don't sell at the prices their owners are asking for them.
INTEREST RATES
This one should be a no-brainer, but it's amazing how many van buyers jump over dollars to pick up pennies. Sure, saving half a percentage point of even a whole point of interest can add up to hundreds of dollars in the bank. However, "subvented" interest rates from a van manufacturer's finance arm can save you so much money that you may be able to afford a vehicle you thought was out of your price range. Subvented interest means the conversion vanmaker is spending its own money to reduce interest rates, thus making its conversion vans more affordable.
INSURANCE
Whenever you purchase a new conversion van, shop around for rv van insurance at no fewer than four reputable companies. Premiums for identical coverage for a given vehicle commonly vary by $100 a year. Often your savings can run as high as $300 to $400 a year. Figuring those savings over five years of van adds up to real money. Who knows? Maybe your present insurance company is already the lowest-cost provider. But you have to shop around to be sure.
FUEL ECONOMY
Buyers of bigger conversion vans might not care, but keep this in mind: a vehicle that gets 25mpg will cost you $2,125 less over five years than a vehicle that gets 20mpg, assuming you drive 15,000 miles a year and gas costs $1.50 a gallon. Consider the price of fuel when calculating the true cost of conversion cvan ownership.
PAYING THE DEALER
Any conversion van sales person will tell you that among the most depressing experiences is spending four or five hours negotiating a deal, only to have the potential client walk out the door because a competitor beat the deal by $50. Sure, $50 is real money, but there are other factors to consider. A van dealer with a sterling reputation likely earned it by taking good care of its customers down the road, and that costs money. Well-trained mechanics cost more than rookies. A well-stocked parts department costs more than a bare-bones inventory. A van dealer that will sell you a vehicle for $50 less but requires you to drive to the next county to get your vehicle serviced isn't saving you anything overall. Price is important, but don't let it be your only consideration.