Fractional Ownership Right Fit for Some RVers

Come vacation time, Tai and Theresa Quan used to take their teenage son and daughter to five-star resorts. But not this past year, according to a report in the summer issue of MoneySense magazine.

Tai Quan, an engineering executive from San Jose, Calif., packed up his family and spent five weeks traveling the U.S. in a luxurious 40-foot recreational vehicle that included a gourmet kitchen, 42-inch plasma TV and a king-sized bed.

“We loved everything about it — from the fine china in the kitchen all the way down to the monogrammed towels,” he said.

As over the top as these luxurious RVs may be, they can be surprisingly affordable thanks to a new concept known as fractional ownership. A group of people agree to rotate the use of the RV while sharing expenses such as depreciation, maintenance, storage and insurance. After three to five years, the RV is sold and the proceeds are distributed to the fractional owners.

“We were about to buy an RV two years ago,” says Quan, “but after watching a TV special on fractional RV ownership, my wife and I decided this was a better way for us to go. RVs depreciate quickly and we couldn’t use one much throughout the year because we’re not retired.”

CoachShare offers a fly-and-drive program that lets you fly to an airport in the U.S. and pick up your RV there, but it limits your RV travels to inside the U.S. Another fractional ownership company, Carefree RV of Houston, will deliver the RV to your doorstep in Canada and you’re free to travel in both Canada and the U.S.

The Quans paid CoachShare $36,000 for a one-eighth share in a $350,000 Monaco Diplomat 40 PDQ. Their package entitles them to use the coach for five weeks annually for three years. The Quans can then sell their share back to CoachShare — for about 40% of their initial investment, if projections pan out — or renew for another three-year term.

“Before we bought our RV, we took about four family vacations a year to places like Florida and Hawaii at $10,000 or so each,” says Tai. “I have to say that luxury coach travel has been as good as some of those trips.”

The companies that arrange the fractional RV deals also store, clean, repair and maintain the RVs. They even include basic training. “When you simply rent an RV,” says Brian Tucker, president of Carefree RV, “most places just hand you the keys and say ‘good luck, and have a good time.’ We try to empower people so that they feel confident driving it.”

MoneySense reported that consumers should talk to a lawyer before signing any fractional ownership deal. Be sure to check out the company that is arranging the deal. Ensure that creditors can’t put a lien on your portion of the RV if the firm gets into financial trouble.

The Quans say they’re delighted with their fractional RV. Last year they spent their weeks in California, the Grand Canyon, Bryce Canyon and Las Vegas. “This year we’re thinking of including Colorado and Idaho on our trip as well,” says Tai Quan. “We can’t wait to get rolling again.”

 This article brought to you courtesy www.RVBusiness.com