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What is in the Prevost Market?
Anyone that has been watching the market for Prevost coaches is beginning to see the impact of the greatly reduced production from around 2007 / 2008. What used to be a robust market for relatively new, lightly used coaches has all but disappeared.
There is a recovery but the total production of today doesn’t come close to the production levels of 10 years ago. Buyers no longer have the opportunity to purchase relatively new coaches that require little or no heavy maintenance costs except in limited numbers. And to get those coaches the price is substantial.
So buyers are forced to purchase coaches 10 years old or older. Since our coaches are built to last, a 10 year old coach has hundreds and hundreds of thousands of miles of life remaining. But buyers now have to understand that at that age or older more thought has to go into the purchase of a coach. And sellers have to understand because of sites like Prevost Community buyers who do their homework are going to have certain expectations regarding a coach they will buy.
What I am seeing is a lot of the coaches for sale in the market are in the 10 to 15 year old range and regardless of how well maintained they are, the selling price is only the beginning of the cost of acquisition. That age range is just about when the interior probably needs to be refreshed, possibly with a new floor, maybe some reupholstery, maybe some flat screen TVs, or maybe a change in lighting. The chassis is ready for a comprehensive refreshing also. If they haven’t been changed already it is a safe bet air bags and brake chambers might need to be replaced. Norgren valves, shocks, maybe tires and maybe batteries will round out the big expenses.
That doesn’t mean the coaches for sale are junk, it just means it is going to be a rare coach that needs nothing. Long term owners know that our coaches need ongoing maintenance. If items needing maintenance are well kept in a timely fashion the annual expenses are not unreasonable. But if a coach has had oil changes and not much else and has reached 10 or 15 years of age the cost of keeping up can be staggering. As buyers and sellers that cost has to be recognized and reflected in the selling price. Conversely a coach with a continuing program of maintenance should carry a price tag that reflects that there will probably be no surprises.
Those in the marketplace, buying or selling have to understand huge swings in the value of comparable coaches can almost always be pegged to a coach’s proven service history.
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7 Replies
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When we bought our 1991 low mileage coach (52,000 miles) in early 2011 seems we (Prevost) replaced air valves, some hoses/fittings, air bags, shocks, and has always done the level 3 service every year on it. I had installed, tires, batteries, fridge, and installed flat screen tv’s front and rear. Always something going on and have about $80,000 total in ours with repairs and 79,000 miles on it. One of the 3 Cruisairs leaks down in about a week and that’s next to r&r those. Always something to do/repair and glad I didn’t pay bigger bucks and having to do the same thing with 3 or 4 times the original purchase price. . As you all know, these puppies aren’t investments more like enjoyable money pits. LOL.
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Agreed. Here is my latest purchase. After 12 years and 181,000 miles, the original could not keep going.
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I haven’t owned a bus long enough to determine if my strategy for my bus purchase was prudent, but I did a lot of research (courtesy of this forum and the helpful members thereon) and proceeded as follows: I bought a 2004 model at a decent price that was near the limits of my budget. The bus appeared to be in good shape and well cared for. It already had some upgrades, 365’s, headlights, new tires, new batteries and front end work/three axle alignment. I devised a R & R budget in three phases: (1) electronics upgrades (TV’s, Crestron, new audio and bay entertainment center remodel); (2) Aux air repairs that couldn’t wait and (3) complete chassis/tranny/genset service with chassis/air system inspection and Marathon aux air rehab.
I just completed Phase 3 at ETLC. It has been an expensive and time-consuming process, but thanks to the candor of Jon, George, Dick, and other mentors, I was not surprised. I encountered a few unexpected expenses along the way. I hope we get to enjoy the bus, as it has been getting worked on for the majority of time I have owned it. I guess I am going to keep spending money until I ain’t got no more.
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Colt,
You can use Quickbooks for tracking your costs and from what I can gather from this forum you will need only 5 columns.
1) Income
2) Expenses
A) Boat
B) Airplane
C) Prevost
You will not need the “Balance” column since it will remain at -0- for the rest of your life.
Glad I could help.
Fred
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Thanks, Fred!
I don’t have a boat or a plane, but I do have livestock and a girlfriend. Same concept, I guess….
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There is an annual cost that must be understand by any buyer of any equipment.
If you don’t want to be stuck on the side of the road you must do the these maintenance chores. Jon you know as a former aircraft owner, annual is required and not an option, why would anyone think Prevost is just a car and do the upkeep when they are good and ready. Proactive maintenance cannot be an option$$$$$. -
Regardless of whether a vehicle is a car, boat, plane or bus the best maintenance is “progressive”, meaning it is an ongoing process in which scheduled maintenance is done when required, and repairs are not deferred, but are taken care of as soon as the need arises.
I am certain I have wasted a lot of money over the years by changing parts based on when I think their life is almost over. For example I am not going to wait until and air bag or brake chamber shows signs of leaking or imminent failure because I do not want to deal with such a repair while on the road. So as a result I throw away parts I replace when I think they have outlived their usefullness even though they may have a lot of life remaining. The same is true of tires and batteries. The bad news is my maintenance cost is likely higher than it should be.
The good news is I am rarely surprised. As a result my annual maintenance cost is quite predictable, and I can easily forecast what I am going to spend each year. I have said it before, but will again make the point. Based on the age of my coaches, so far I have never spent more for maintenance or fuel combined than I have lost on depreciation, the point being a bus is expensive by any unit of measurement.
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