Depreciation of motorhomes explained

Do motorhomes keep their value? That’s the £100,000 question! Motorhomes are big purchases and most people want to make sure their motorhomes retain value year after year. In this guide, we look at depreciation of motorhomes, including whether motorhomes hold their value and how to calculate motorhome depreciation.

A motorhome is a great investment if you know how to slow depreciation down and how to make money from it – here’s everything you need to know!

Do motorhomes hold their value?

Like any vehicle, the value of a motorhome will depreciate over time. But the good news is that the rate of motorhome depreciation is relatively low, at roughly about 10% a year, and much less the longer the motorhome is owned. Generally speaking, motorhomes retain around 70% of their value after three years.

Compared to a car, this is great value! Buy a car new and the saying is that it drops 50% in value the moment you drive it off the forecourt. While this is a slight exaggeration, it’s true to say that cars and other vehicles depreciate at a significantly higher rate than motorhomes – a new car after three years of ownership will only be worth about half its original purchase price.

The other big advantage of motorhomes is that it’s fairly easy for a motorhome owner to add value to their vehicle, to take less of a depreciative hit if they want to sell. Additionally, the motorhome market works on a long term basis compared to cars, i.e. the longer a motorhome is owned, the less it depreciates. Buy even an older motorhome in good condition and it could keep most of its value for years.

And that’s without even taking into account the thousands you’ll save on accommodation and restaurant costs while on the road, likeRosie above!

What factors affect the depreciation of motorhomes?

Apart from general wear and tear, these are reasons why motorhomes depreciate:

1. New models on the market

Vehicle models are constantly being updated, as motorhome brands bring out even bigger models with updated features. For new or current motorhome owners with big budgets, the latest model (likeImy, above) are generally considered more attractive, making older models worth less.

2. Usage

Usage also impacts the depreciation of motorhomes. A rarely used and privately owned motorhome will depreciate at a lower rate than one that’s on the road most weeks and used by several people. That said, using your motorhome frequently is the easiest way to ensure you get full value from it to offset depreciation, as we explain below.

3. Accessories and add-ons

Adding highly sought after items like solar panels or extra sleeping berths will raise the value of your motorhome when you come to sell. Making it attractive and functional will also help make it a good deal if you’re hiring your motorhome out! But be careful – amateur additions can devalue your motorhome and have a negative effect on depreciation.

Another good idea to add value and decrease depreciation on your motorhome is to add an automatic gearbox, as this will draw in hirers and buyers who’ve never learned to drive on a manual system.

4. Market fluctuations and external events

Most of the world saw an increase in domestic travel over the past couple of years, largely because of restrictions and the closure of many international borders during the pandemic.

A factor like this can be both a plus and a negative for motorhome pricing – on the one hand, the depreciation of motorhomes will slow down; but on the other, the total number of motorhomes on the market could grow, having a detrimental effect on depreciation rates.

5. Chassis/body

Until fairly recently, most motorhome chassis have been manufactured in Europe, and some in Japan. In recent years, Chinese chassis have entered the market, offering a less expensive way to buy a motorhome.

But while these are a smaller purchase upfront, motorhomes built on Chinese chassis tend to depreciate more quickly. And wherever your chassis is from, make sure to thoroughly check for rust and other body damage if buying second hand.

How to calculate depreciation of motorhomes

Calculating motorhome depreciation can never be an exact science, but it’s possible to estimate annual drop in value whatever your motorhome type. As a general rule, allow 20% for the first year, 30% for the total of the first three years, 50% after five years and 60-75% after 10 years. These figures aren’t set in stone – for example, old Airstreams still sell for a big price.

You can also calculate likely depreciation according to motorhome type. A Class A motorhome will devalue a little faster than a Class B:

Class A motorhome depreciation after 3 years: 30-45%

• After 5 years: 65%

• After 10 years: 75%

Class B motorhome depreciation after 3 years: 30-33%

• After 5 years: 50%

• After 10 years: 60%

Here’s how depreciation is likely to work on a new Class A vehicle costing £100,000:

• After 1 year: 20% depreciation = £80,000 remaining value

• After 2 years: 22-27% depreciation = £72-75,000 remaining value

• After 3 years: 27-30% depreciation = £73-75,000 remaining value

• After 4 years: 30-31% depreciation = £69-70,000 remaining value

• After 5 years: 35-38% depreciation = £62-65,000 remaining value

• After 10 years: approx. 60% depreciation = £40,000 remaining value

And for a new Class B motorhome costing £50,000:

• After 1 year: 20% depreciation = £40,000 remaining value

• After 2 years: 25% depreciation = £37,500 remaining value

• After 3 years: 30% depreciation = £35,000 remaining value

• After 4 years: 40% depreciation = £30,000 remaining value

• After 5 years: 50% depreciation = £25,000 remaining value

• After 10 years: approx. 60% depreciation = £20,000 remaining value

Want to check the likely depreciation value of a particular motorhome you’re thinking of buying? Use this handymotorhome depreciation calculator.

How to slow down the depreciation of motorhomes

As we’ve said, none of this is set in stone! There are plenty of ways you can significantly slow down the depreciation of any motorhome. Here’s how:

1. Keep it in excellent condition

Factor preventative maintenance into your annual motorhome budget – it’s not just about petrol and food for your holidays! Tackling potential problems before they arise is the best way to keep your motorhome spick and span. Tyres, engine, water system, electrics and furniture and fittings should all be inspected thoroughly at least once a year.

Make sure to keep a detailed service record, with receipts, so any future buyers can see exactly how much you’ve spent keeping your motorhome in tip-top condition. For example, learn how to clean a motorhome roof properly!

2. Build in repair costs

As above, your annual motorhome budget shouldn’t just include leisure expenses. We recommend keeping aside at least £1,000 per year for repairs and upgrades, and up to 25% of the motorhome value for older vehicles. As above, keep a detailed service record.

3. Add valuable features

The most valuable addition you can make to your motorhome is extra sleeping spaces – for example, an electric double bed above the cab if you have space. Solar panels, a full-size fridge and oven, and smart furnishings will all add value for potential buyers, or make your motorhome stand out above competition if you plan to hire it out.Funbus above does this in true style!

4. Protect from extreme weather

The best way to keep a motorhome protected from UK winter weather is to use it! But if you’re planning to stay home over winter, and you’re not hiring your motorhome out, it’s essential to winterise.

Draining the water system, checking regularly for damp, running a small heater and covering upholstery with waterproof sheeting should all be on your winter to-do list.

5. Buy second hand

A new motorhome will typically depreciate more quickly than a used one, simply because of the higher sale price. Buying second hand helps you to avoid the first 20% depreciation of the motorhome’s first year, and of course your initial outlay is smaller. This is especially true if you buy in low season – see our best month to buy a used motorhome guide for the full lowdown.

Buying new? Check out ourbest motorhomes to buy in the UK.

So is a motorhome a good investment?

Yes, a motorhome can be a great investment if you approach it the right way. Even if you buy a motorhome straight off the production line, the savings on accommodation and food costs over the years you have it will hugely offset even the chunk of depreciation in its first year. Or go for second hand to bypass that completely!

And of course, there’s also a way to make back your money and more…

Earn a return on your motorhome

With a greater understanding of how the depreciation of motorhomes works, you can make an informed decision on whether to invest. As outlined above, there are loads of ways you can slow down the motorhome depreciation and even make money by hiring it out! This is hands-down the easiest way to earn a return on your investment – theRoller Team Zefiro above, for example, nets its owners £150 a night in hire costs.

Join hundreds of UK owners by listing your motorhome with us for free: read ourhow to rent my motorhome guide to get started!

Why Camplify?

Camplify connects owners like you with local and international holidaymakers - all of whom are verified to maximise the safety when you hire out your motorhome. Discover more of our advantages for owners below:

• It's free to list your motorhome.

• If you don’t have all-risk insurance, we can provide you with it when you sign up.

• We give your van a 24/7 RAC breakdown cover.

• You have complete freedom to approve or reject guests interested in renting your motorhome. Your wheels, your rules.

• We provide you with tips and step-by-step guides on how to improve your service and your motorhome to get more and more bookings!

The sooner you set up your listing, the sooner it will start to receive visits and bookings! See how much you could earn if you rent out your motorhome with ourfree income calculator or sign up now to start enjoying the above advantages today.

If you still have questions, want to discuss your income potential with an expert or get more information on how to list your motorhome, call us on ☎ 0330 808 1811 or visit www.camplify.co.uk. We’ll be happy to help you with anything you need!