Motorhoming has seen a significant rise in popularity over the last ten years. According to Statista, there were 11,600 motorhomes registered in the UK in 2022.
When considering purchasing a motorhome, many potential owners seek reassurance that it will retain its value over time. Important factors to consider include whether buying a used motorhome is worthwhile and how its depreciation compares to that of a brand-new model. Several aspects need to be evaluated when determining the investment potential of a motorhome.
Does a Motorhome Hold Its Value?
The preference for motorhomes over the traditional car-and-caravan setup has grown due to their compact size and ease of use. With a motorhome under 3,500 kilograms, you can drive it on a standard licence, and the shorter length eliminates the challenges of towing a caravan. To maximise your investment, it’s essential to understand how a motorhome might retain its value over time.
In general, motorhomes depreciate more slowly than cars or caravans. Typically, a motorhome retains about 70% of its original value after three years, which equates to a 10% annual depreciation rate. In contrast, cars tend to be worth only 40% of their original price after three years, while caravans hold about 55% of their value. Moreover, the longer you own a motorhome, the slower it tends to depreciate, with the rate often dropping below 10% per year after the initial years.
New Motorhomes vs. Used Motorhomes
A brand-new motorhome often comes with the latest features but also carries a higher price tag. Even so, as noted, it typically retains around two-thirds of its value after three years. Motorhomes generally perform well until they reach about 200,000 miles or twenty years of moderate use.
On the other hand, used motorhomes can be bought for significantly less than new ones. Since depreciation slows considerably after the first three years, a well-maintained used motorhome should still retain a substantial portion of its value.
Factors Influencing Motorhome Depreciation
When determining the value of a motorhome, several factors are important to consider, including wear and tear, market demand, and the vehicle’s brand.
- Usage
The more a motorhome is used, the more its value may decline. On average, motorhomes are used up to five times a year, often for short breaks or extended summer trips, typically accumulating between 3,000 and 5,000 miles annually with minimal wear and tear.
Renting out your motorhome can lead to additional mileage and stress on the vehicle, which may decrease its value. The interior may also experience more wear and require refurbishment sooner if the motorhome is rented out rather than kept for personal use.
- Brand
Generally, the quality of new motorhomes is exceptionally high, with many reliable manufacturers in the industry. Hymer, a renowned brand, was founded by Erwin Hymer, who created the first motorhome in 1961. The company continues to produce award-winning motorhomes in Germany and expanded its portfolio by acquiring Elddis in 2017.
Auto-Trail, established in Grimsby, Lincolnshire, in 1982, is another reputable brand known for its award-winning motorhomes. Other reliable brands include Swift, based in Yorkshire, and Rapido from France, which also produces Itineo motorhomes. Adria motorhomes, manufactured in Slovenia, are well-regarded for their high-performance models.
- Demand and Market Fluctuations
Motorhome demand can be influenced by holiday trends and economic conditions. For example, Finder.com reports that two million people in the UK enjoy motorhome and caravan holidays each year.
Economic factors, such as the cost-of-living crisis, might make luxury holidays seem out of reach for many, leading to increased demand for motorhome holidays. This shift in demand can help motorhomes hold their value more effectively.
Market demand can significantly affect motorhome depreciation. High demand generally leads to higher values, as buyers are willing to pay more. Conversely, when demand is low, motorhomes depreciate as fewer people are interested in purchasing them. Additionally, the balance of supply and demand can impact depreciation—an oversupply of motorhomes may lead to lower values as buyers have more options.
Can Additional Features Impact Your Motorhome’s Depreciation?
Motorhomes equipped with well-maintained appliances and furnishings typically retain their value better than those with outdated or worn-out features. While adding extra features can increase the initial cost of a motorhome, they can also help reduce depreciation.
Installing items like solar panels or extra sleeping berths can increase your motorhome’s value when it’s time to sell. Enhancing its functionality and appeal can also make it more attractive if you’re renting it out. However, be cautious—amateur or low-value additions can negatively impact your motorhome’s value and increase depreciation.
Class A vs. Class B Motorhome Depreciation Rates
Motorhomes fall into different categories, and each has its own depreciation rate.
Class A motorhomes are typically built on heavy-duty frames with commercial chassis and can be quite large, especially in the US, where they can reach lengths of up to 45 feet. On average, Class A motorhomes depreciate by 30% to 45% in three years, 65% in five years, and around 75% after ten years.
Class B motorhomes are smaller and more manoeuvrable, usually between 17 and 23 feet long, built on a van chassis. These are easier to drive on city streets and country lanes, making them a popular choice. Class B motorhomes typically depreciate by 30% to 33% in three years, 50% in five years, and about 60% after ten years.
How to Slow Down Motorhome Depreciation
Depreciation estimates are just that—estimates. There are steps you can take to help your motorhome retain as much value as possible over the years. Keeping a log of all services and receipts for any refurbishments is a good way to prove the ongoing value of your motorhome to potential buyers.
- Regular Servicing
Just like any other vehicle, regular servicing is essential for a motorhome. The engine and chassis should be serviced every two years, and an annual MOT is required for motorhomes older than three years. Additionally, it’s important to have a yearly habitation check to ensure that all interior systems, such as gas and water, are functioning safely.
- Maintain Your Motorhome
Travelling along the coast can expose your motorhome to saltwater, which can cause corrosion. Regular waxing and cleaning of the exterior, especially after exposure to saltwater, can help prevent this. Keeping the interior clean and making necessary repairs as soon as possible will also help maintain your motorhome’s value.
- Winter Care
During colder months, it’s important to winterise your motorhome or consider storing it to protect it from harsh weather. Taking steps like draining the water system, keeping the battery charged, inflating the tyres, and installing vent covers can help prevent costly damage during the winter.
- Increase the Number of Berths
Most motorhomes have two, four, or six berths, but adding more sleeping space can help reduce depreciation. This could be done with portable bunks or a side awning, or by installing a high top or elevating roof to create an upper sleeping area. However, for the best results, these modifications should be professionally installed.
