This chapter is aimed at retirees who have time on their hands to travel a lot. It’s a cost comparison I did between traveling in a motorhome, a travel trailer, or using a timeshare. I haven’t included details about the results, because your analysis based on your situation will be much different. Nonetheless, it will give you an idea of what you might consider. It is not a total cost for each. It is simply a daily comparative cost based on essential expenses.
Using a motorhome is like living in a manufactured home. Motorhomes are large, well-finished, and self-contained.
Travel trailers are at the opposite end of the scale. They’re much smaller but livable for those who like a traveling lifestyle but are willing to sacrifice comfort to save money. You need a vehicle to tow them.
Timeshares are typically one or two bedroom condominiums with full kitchens ranging in size from 400 square feet to 1,500 square feet.
The following assumptions I made:
- The use is for half of each year (6 months) for a total of 5 years.
- The motorhome or trailer is about two years old in good condition and purchased about 30% under MSRP (when new).
- The amortization cost was 10%/year for motorhomes and trailers. It’s 0% for timeshares because you can usually sell at a price that you bought. This assumes you buy on the resale market, not from a resort developer.
- Figure a yearly vehicle maintenance expense for motorhomes and trailers. For timeshares the expense is the yearly maintenance fee.
- For motorhomes and trailers, there is a daily RV park fee. There is no comparable fee for timeshare owners.
- No adjustment was made for the difference in gasoline consumption for different vehicles.
Habitation
It’s difficult to reduce your habitation expense using timeshares. The best you can do is buy timeshares for a low price up front (on the resale market). Then you have to make annual maintenance payments over which you have no control. Timeshare resorts tend to be in places with a high cost of living.
With a motorhome or travel trailer you can reduce your expenses somewhat by changing the places you stay. For instance, you can stay more often and longer at places that are free rather than at places that have a high daily fee. In addition, you have more choices of places to go and can visit places with a lower cost of living.
Note that if you include financing for the motorhome, travel trailer, and timeshare, the outcome is different. The motorhome is going to cost a huge amount of interest and the travel trailer much less. The interest cost for the timeshares depends on the purchase price. For expensive timeshares it will be like the motorhome. For inexpensive timeshares, it could be less than a travel trailer.
The typical cost of a timeshare from a timeshare developer-manager is $15,000 to $35,000 per week. At that price, the minimum 13 timeshares needed for 6 months would be off the scale compared to motorhomes or travel trailers. In normal times, however, when you can buy timeshares for a lesser price in the timeshare resale market, the timeshare alternative may be attractive.
Other Factors
Cost is not the only factor in deciding a means of recreation away from home. The RV life style is distinct and may not appeal to everyone. Likewise, the timeshare lifestyle is distinctly different and may not appeal to everyone.
Bottom Line
In my calculations, the travel trailer and the timeshares cost about the same per day. The motorhome was about twice as much per day as either the travel trailer or the timeshares. Nonetheless, your calculations may be different. And in any case, cost may not be your most important consideration.
Calculations I haven’t included my calculations, as yours will be different. But the considerations above will help you reach your own more accurate conclusions regarding costs.
Habitation
Timeshare units are the most comfortable. They are condominium units, just like living at home. In many places they are quasi-luxurious or even luxurious. They are seldom substandard.
Motorhomes are comfortable too. Although constricted in size, they come nicely finished and have generous space for a moveable home.
Travel trailers can be as large as motorhomes. However, this comparison is based on a small size (20 feet) and cannot be considered as comfortable as a motorhome or timeshare unit.
Settings
Timeshares typically have very nice (often luxurious) amenities and attractive surroundings.
RV parks are less often luxurious and typically provide just a slot of space in a facility that is considered substandard compared to most timeshare resorts
Locations
Timeshares are mostly located in desirable resort locations. However, timeshare resorts are numbered in the hundreds, and the variety of places you can visit is limited. Some states have no timeshare resorts. Others states have only one or two. Orlando, Florida allegedly has one-third of the timeshare resorts in the world leaving the remainder of the country more sparsely populated.
Although timeshares are usually well-located, well-located often means located in a resort area rather than located on a lake, river, beach, or other natural attraction.
RV parks are ubiquitous. You can find RV parks anywhere and everywhere. They number in the thousands. There are RV slots at many camping grounds. And there are RV parks and camping grounds in some spectacular locations such as state and national parks. It is not unusual to find RV parks on lakes, rivers, beaches or next to other natural attractions.
All in all, the number of spectacular places available to motorhomes and travel trailers is far greater than those available to timeshare users. However, the quality/luxury in RV locations is often substandard.
The Final Word
Although your calculations based no your situation may be different, it seems clear that a motorhome is significantly more expensive than a travel trailer or a timeshare (purchased on the resale market). But cost may not be your primary consideration. Lifestyle, variety of locations, mobility, and other factors may be more important to you.
