Buying an RV for the First Time

Choosing your new home-away-from-home begins with the wide range of RV types from which to choose – and the considerable price differences among them. A small folding camping trailer can cost as little as $5,000, while the price of a Class A motor home can easily exceed $100,000.

Then there are the additional expenses and lifestyle considerations of your purchase. Here’s what you need to know and consider before heading to an RV dealership.

Understanding the types of RVs

The first consideration is finding the type of RV that works best for your needs. The decision largely depends on how often you plan to use your RV, how far you intend to drive it and your budget.

There are two main categories: motor homes and towable RVs. A motor home combines both a living space and a vehicle in one unit. A towable RV is housing on a trailer that you pull with a truck or SUV.

Each RV type has its advantages and drawbacks:

Motor homes

Generally, motor homes are more expensive to buy than towable RVs, and more costly to repair and maintain. Motor homes tend to have more comfortable and spacious living areas. They are classified as Class A (large and buslike), Class B (camper vans) or Class C (mid-sized, and with an over-cab extension). A new motor home usually costs around $80,000 to $140,000.

Towable RVs

A towable RV offers flexibility. You can drop the unit off at a campsite, then use your tow vehicle to go sightseeing or head to the grocery store. Costs vary by type. A basic folding camper or travel trailer typically costs around $5,000 to $25,000. A fifth-wheel travel trailer, which has a raised front section that extends over and connects to a special hitch in the bed of a pickup truck, can cost at least $60,000.

How to choose an RV type for your needs

Knowing what to look for when buying an RV is important. Besides their comparative purchase prices, other features and considerations to keep in mind when choosing among the different RV configurations include:

• Intended use: If you plan on taking weekend camping trips, you may find that a small towable pop-up camper will suffice. But if you intend to go on long-distance journeys, or live in your RV for any length of time, you’ll probably want a motor home or large towable RV.
• Number of passengers: If you plan on traveling solo or with just one other person, a small towable RV could do the trick. But if you'll have several friends or kids along for the ride, you may need a larger unit with more living space.
• Driving comfort: If you're new to RVs, driving or towing one can be challenging. Small and mid-sized motor homes will seem more familiar and be relatively easy to drive. Larger motor homes and towable RVs, though, take some time to get used to.
• Storage: Think about where you'll park or store your RV. If you lack the space to park it at home, you’ll face the expense and inconvenience of renting an off-site storage space.
• Layout and sleeping space: Pay attention to where people will actually sleep, eat and store essentials. Floor plans can feel very different in person than they do online.
• Towing and setup needs: If you’re considering a camper, confirm that your current vehicle can safely tow it and that you’re comfortable with hitching, backing up and campsite setup.

Quick tip: One common first-time buyer myth is that bigger automatically means better. In reality, the right RV is the one you can drive or tow confidently, store conveniently and afford comfortably.

Budgeting and financing your RV

When it comes to buying an RV, the sticker price of a new towable RV or motor home varies widely. And that expense is only part of the total cost of ownership. Here are some questions you should ask before you buy an RV.

Should you buy an old vs. new RV?

Buying brand new means you'll get an RV that’s pristine and sporting the latest features (and most likely a manufacturer’s warranty). Yet, as with a car, you pay a premium for being an RV’s first owner. RVs depreciate quickly, especially in their early years.

A used RV can be a better choice for first-time buyers, since it can save you thousands over buying new. But, if you go this route, you may want to hire an RV inspector, who will conduct a professional walk-through to flag needed repairs or other condition issues.

What are the financing options when buying an RV?

RVs can be a major investment, and relatively few people pay for a new or used model in cash. RV loans are often available through dealerships, but you can also secure financing (potentially with better rates and terms) on your own through a bank or credit union.

As with any loan, you'll have to repay the principal with interest, which can add to your overall ownership cost.

What ongoing and maintenance costs should I consider?

Besides the initial purchase price, you should also account for the following ongoing expenses:

• Insurance: As with a car, you'll need to insure your RV before you hit the road. A towable RV might be covered under your auto insurance for the towing vehicle, but you should check your vehicle policy or consult with your insurance representative to confirm the coverage. A motor home will require its own policy, which can be purchased from many auto insurers or from companies that specialize in insuring RVs.
• Driver’s licenses: As a rule, smaller RVs, towable or not, can be driven with a regular driver’s license. In some states, though, very large motor homes require a special license. Depending on the state, the same can apply for a towable RV if its weight, combined with that of the towing vehicle, exceeds a certain figure.
• Registration fees: Registration rules vary by state, and some towable RVs may also need to be registered. But motor homes, like any vehicle, must be registered with your state’s department of motor vehicles. The cost varies by state and RV size.
• Campground fees: While boondocking (camping on public land) is an option, it's not for everyone. If you want your RV to hook up to water, sewer or energy, you need to budget for campsite rental fees at RV parks, public parks or private campgrounds. Depending on the location, expect to pay between $25 and $100 per night.
• Storage fees: If you need a place to store your RV when you’re not using it, you may need to rent a storage space. Outdoor storage can be inexpensive, in the two-figure range per month, but a covered or indoor garage space may cost you hundreds.
• Supplies: Take into account additional supplies and expenses, like gasoline, propane and camping gear.
• Maintenance fees: Because RVs combine a vehicle with the comforts of home, they need a lot of maintenance. Besides keeping up with the vehicle's oil changes, tire changes and brakes, you may also need regular servicing for the RV's air conditioning, appliances and other amenities. Setting aside some money every month in an RV fund can help cover maintenance costs (and any unexpected repairs that pop up).

Planning for RV life

Becoming an RV owner can involve acquiring new skills and adjusting your priorities in life. Here’s what you should consider in making the transition to an RV lifestyle:

• Downsize: If you're planning to spend significant time on the road – whether full-time or for extended trips – you'll likely need to reduce or relocate some of your belongings. Consider selling items you won't need while traveling to simplify your setup. Alternatively, you could rent a storage unit for things you want to keep but won't need in your RV. Many experienced RVers, whether full-time or seasonal, say they wish they'd pared down their possessions more before hitting the road.
• Take a class: Unless your RV is small, you'll need to get comfortable driving your motor home or pulling your full-sized towable. It pays to safely practice maneuvers such as backing into a camping space or navigating a tight corner before your first big trip. You might even consider taking a course with an RV instructor. The teacher will help you learn how to handle your rig, and school you in basics like emptying and flushing tanks and, with a towable RV, hooking and unhooking to a trailer.
• Consider a membership: Through programs such as Harvest Hosts, KOA, Passport America and Thousand Trails, you can rent campsites at a discount, making it more affordable to live in your RV.
• Build community: Online forums, social media groups and local meetups can help you connect with and learn from other RV owners.

Still deciding what to look for when buying a camper? A campground walk-through can help. Touring different setups in person may give you a better feel for size, storage and livability than photos alone.

The RV transition

Buying an RV is exciting, but it's also a big commitment. The perfect RV for you will depend on your lifestyle, goals and budget. Understanding the different types and the typical costs of ownership will make you a more informed buyer, and better prepared to start shopping at the dealership.

Beyond buying your RV, it’s worth investing time, and perhaps some money, to best set yourself up for success. That should increase the odds of enjoying RVing, especially at the start.

Don’t forget about insurance. Learn more about the importance of insuring your RV all year