Good morning forum people. For Today's exercise, let's just play make-believe and head down the rabbit hole that is Rob Singer's Newell RV fantasy. There is absolutely no evidence that Rob purchased a Newell RV back in 2011, nor sold it to an mysterious Israeli in 2021. Well no evidence other than pictures Rob took in an RV that wasn't his on the showroom floor.But let's just take Rob at his word for it (what could go wrong), for this exercise.
So Rob claims he purchased this Newell RV in 2011 for 1.6 million dollars. He claims he sold it in 2021 for $495k. Right off the top that is depreciation of $1,100,000 or $110, 000 a year. So let's start with sales tax. All but 5 states require sales tax on such a purchase. And guess what, South Dakota, Arizona, where Rob lives, nor Oregon where he claims to have purchased this rig are on that list. So, @ a very liberal 6%, lets add $66,000.
Storage: Rob claims he stored this Rv away from his home in Glendale. Googling cost of storage for an RV, I come up with $75-$200 per month. Again, I will be generous to Rob and say $100 a month. 120 months over 10 years is another $12,000 added to expenses.
Maintenance. I have no idea. Surely if you drive these things, all that weight will eat through the tires at a quick rate. And brakes to stop all that tonnage. And general maintenance and repairs. $1000 a year? is that fair? Probably way on the lite side but ring up another $10,000 over 10 years.
Fuel: Oh boy!!! What do these things get....6, 8 miles per gallon? I guess we are now into how much you actually drive it, but lets just say $100 a day for 50 days a year. Is that fair? Another $5000 a year in fuel or $50,000 to the total.
Cost to stay in RV park. Again google to the rescue, says average of $50 a night x 50 nights a year, is $2500 a year or $25,000 over 10 years.
What am I forgetting? sheets and towels and all the little extras. We will be generous and let that go for now.
So let me add this up for the 10 years Rob owned this RV in his fantasyland tale.
depreciation: $1,100,000
storage: $12,000
maintenance: $10,000
Fuel: $50,000
RV park cost $25,000
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Grand Total $1,197,000 that it cost Rob to own this RV in his fantasy story or roughly $120,000 a year.
Now using the same 50 days of travel a year, Suppose a person paid an average of $150 a night for a decent hotel? That would be $7500 a year or $75,000 over 10 years.
So you have $1,197,000 cost over 10 years vs $75,000 over 10 years for the same 500 days of travel. Shrewd investment Rob.
Of course none of it is/was real. But if it was, Rob would have proven yet again, what an idiot and fool he would be.
And now I am off to bed for a few hours.
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