A growing number of American retirees are using RVs to explore, escape, and enjoy themselves. But is buying one the right financial move for you?

As more Americans approach retirement, many are embracing the recreational vehicle (RV) to make the most of their newfound freedom. You can find anything from a small pop-up tow-behind to something as luxurious as a rock band tour bus to satisfy your desire to roam. With a large range of options and prices, there could be something for everyone in the RV market. Whether you plan to use an RV for short trips or live in it for several months at a time, you should keep some important considerations in mind. Here are the pros and cons of buying an RV in retirement.

5 Pros to the RVing Lifestyle

There are plenty of good reasons to dream about the RV lifestyle. Here are many of the positive aspects of owning an RV:

1. Cheaper Than Living in a House
   If retirement for you means freedom from mortgage payments and lawn maintenance, an RV could be the right move. You will still have living expenses if you sell your house and move into an RV, but they may be smaller. You can forget about paying property taxes, although you may pay a personal property tax depending on in which state you register your vehicle. The cost of campground fees will likely be much less than your current mortgage or rent payments, and you won’t have to pay anyone to cut your grass. Also, utilities are usually included in campground fees, and some include cable and Wi-Fi.

2. Mobility and Flexibility
   An RV gives you the flexibility to go where you want when you want and stay as long as you like. All your personal possessions are packed in and ready to go. You can even take your furry friend along with no hassle. If you want a change of scenery, you can just head out on the open road, no tickets or reservations required. You just need to buy food, fill up on gas, and bring your pet. For retirees who are tired of the constraints of the work-week schedule, RVing can be the perfect solution.

3. Freedom to Explore
   For a retiree, the RV can be more than a vehicle or a place to live. It’s a symbol of freedom. You can travel anywhere in the country, explore national parks, meet new people, and escape from the everyday routine. You can also use RVing as a way to explore a passion that you couldn’t indulge while you were working and raising a family. You could create a travel plan that lets you focus on experiencing different styles of music, follow your favorite baseball team for a season, explore U.S. history, or volunteer across America.

4. Spend Time in Nature
   RVing takes you places you can’t go any other way. It allows you to explore park land without carrying your stuff on your back. Time spent outdoors in the sunshine and away from your electronic devices can be good for your physical and mental health. You can find a rustic campground or remote campsite where you can park and sit out under the stars. Or take short hikes from your RV and return to the comforts of your temporary home. An RV allows you to explore natural surroundings and still shower indoors.

5. Meet People
   Campgrounds are usually friendly places where people come together to share the amenities and tell their travel stories around a campfire. People tend to frequent certain campgrounds and become friends. They might even travel a set circuit from one area to the other, like a mobile community. If you set out in your RV, you will definitely meet other retirees embracing the same lifestyle.

5 Cons to RVing in Retirement

Nothing is perfect, not even the dream of owning an RV in your retirement years. Here are some issues to consider when deciding if the RVing lifestyle is right for you.

1. Maintenance Costs
   RVs are a combination of vehicle and living space, so maintenance will encompass both. Just like your car, your RV will need periodic oil changes and fluid checks, transmission service, brakes, and tire work. The cost for these services is higher on an RV than a car. In addition, an RV has more moving parts than a car, including plumbing, a cooktop, and slide-outs. You’ll need to plan for maintenance costs on items such as these, as well as for fuel; RVs can be notorious gas (or diesel) guzzlers. If you don’t plan to live in your RV year-round, you may also need to consider storage fees during the off season.

2. Depreciation
   RVs depreciate faster than most motor vehicles, with some depreciating by 25% after three years and 50% in five years. Buying an RV is not an investment the way buying a house can be. When you sell your RV, you will not get your money back. If you plan to live in the RV full time and sell your house, you may need to budget for the cost of replacing the RV after 20 years or 200,000 miles.

3. Not as Much Space
   One of the trade-offs of taking your life mobile in an RV is that you won’t have as much living space. For empty nesters or single people, this might not be a problem unless you want to invite your grandchildren for an extended visit. An RV also will not accommodate your heirloom furniture or other prized possessions. All the available living space in an RV is usually accounted for with the built-in furniture and fixtures you’ll need for living comfortably and traveling safely.

4. Temperature and Humidity
   The inside of an RV is not insulated, heated, and cooled the way a house is. You’ll have heat and air-conditioning, but you will not keep all parts of the RV at a constant temperature and humidity level, especially as you travel around in different climates. You should be prepared to be too hot on the hottest days and too cold in the winter. The inability to control humidity can result in mold and mildew growth. It is important to monitor your RV for mold and clean it up when you find it. If left unchecked, mold can present health issues and require professional cleaning to irradicate.

5. Life on the Road
   The RV lifestyle has many benefits, but it can also be physically and emotionally taxing. Driving a vehicle that large is a big responsibility, and travel days can be stressful. RVing can also be lonely. You may have trouble adapting to the loss of a routine and not having familiar faces nearby. Even with the most luxurious motor home, you may start to miss creature comforts like hot baths, regular Wi-Fi or cable service, and a full kitchen. Setting up and packing up a trailer or motor home also requires extra effort, and that’s before you have to worry about pumping out your own toilet.

Plan Ahead

If you’re thinking about adopting the RV lifestyle, talk to your financial planner and financial institution before you purchase a vehicle. Your planner can help you determine if RV financing can work for you, and your financial institution can help you with loan preapproval and smart budgeting tips to help you save money toward a down payment. Then, when you are ready for the open road, rely on mobile banking to make payments and track your accounts, no matter where you choose to roam.