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When buying an RV, you need to consider many variables and factors. Here, we’ll walk you through everything you need to know about buying an RV, including what to look out for, how much money you have to pay, what types of RVs are best suited for certain activities, how to prevent RV depreciation, and more.
What is Depreciation?
Depreciation is the value loss that occurs over the life of an asset. For example, if you buy a car, truck, motorcycle, boat, or RV, depreciation is the cost of losing those things’ value over time.
The process of depreciation is fairly simple. When you purchase an item, you pay money for it. Over time, that thing loses value. For example, let’s say you bought a $10,000 SUV three years ago. At the end of each year, you’d be able to sell it for less than $9,500. This economic phenomenon is called depreciation.
In addition to time, there are several other factors affecting the depreciation of assets. Some items depreciate faster than others. For example, cars, trucks, motorcycles, boats, and RVs depreciate much faster than furniture and appliances. In addition, frequently used items tend to depreciate faster than ones that aren’t used very often.
What is the Depreciation Rate for RVs?
RV depreciation rates depend on many variables. They include the following:
- Model: Different models of vehicles depreciate differently
- Year/Make/Model: A 2012 model might depreciate faster than a 2019 model, even though the same manufacturer makes both.
- Vehicle Type: Class B motorhomes depreciate slower than class A travel trailers, for example.
- Condition: If your RV is in bad shape, it will likely depreciate faster than one still usable.
- Location: Where you live determines how fast your RV depreciates.
- Owner: How long you’ve owned your RV will impact its depreciation rate.
RV Depreciation Depending on Its Type
The average cost to buy and sell a recreational vehicle (RV) depends on where you live, how much money you have, and how long you plan to keep the RV. The longer you intend to use your RV, the cheaper it will likely become. This is because the “value” of the RV decreases as it ages, and its features can play an important role. For example, Class A motorhomes typically feature one bedroom, one bathroom, and a kitchenette area. In addition, these models usually come with appliances like refrigerators and stoves. If the appliances and amenities depreciate, the entire value of the motorhome will drop.
Class A motorhomes, fifth-wheel trailers, and Class C motorhomes are considered luxury vehicles and tend to hold their value better than other RVs. In addition, fifth-wheel trailers have a lower depreciation rate than Class A motorhomes and Class C motor homes.
RV Depreciation Depending on Its Condition
Before selling or buying a used RV, a good rule of thumb is to check out the vehicle’s exterior. Is it clean and free of dings and scrapes? Does it look like someone took care of it? If you see something that needs attention, mention it during negotiations. A dirty RV could bring down the price considerably.
When it comes to an RV’s interior, take note of what you find there. Do you notice odors coming from the air vents? Are the appliances working properly? What about the bathroom? How does the sink work? Remember, those prospective buyers will have more questions than these basic ones.
Finally, don’t forget to ask about the history of the RV. Was it recently purchased or inherited? Has it seen many miles already? Have repairs been done? These factors will help determine how much it’ll cost to fix up a depreciated/used RV.
RV Depreciation Depending on the RV Brand
When you buy a used RV, you want to make sure it’s one you’re familiar with. You don’t just want to take a chance on something that could break down on you. But what about those iconic brands known worldwide—the ones that everyone knows and loves? Do they really hold up well over time? Is anything special about these brands that makes them worth paying more for? Analyzing some of the most popular RV brands people use reveals a few answers.
The research showed us that even though these brands aren’t necessarily known for being the cheapest RVs on the market, they tend to hold their value longer than those less famous. For example, we found that Airstreams sold better on average compared to Winnebagos.
The price differences might seem small, but they add up. For example, if you bought a Winnebago for $400,000 and it depreciated to $200,000 over the next five-seven years, you’d lose $200,000 in value. On the flip side, if you bought an Airstream for $400,000 and it increased in value to $450,000 over the same period, you’d gain $45,000. So, if you’re looking to invest in an RV, consider whether you’ll benefit more from investing in a brand that’s more expensive now or one that’s cheaper later.
RV Depreciation by Type of RV
The average age of most RVs is around 15 years old. However, some models are much older than others. If you want to know what motorhome version will depreciate faster, here’s how it breaks down by type.
Class A and B Motorhomes’ Depreciation
The average RV owner spends about ten years owning their vehicle. This means knowing how to value a used RV properly is important. In fact, you could lose thousands of dollars over the life of your RV if you don’t understand depreciation. If you plan to sell your RV within five years, you might want to consider buying a Class B RV in the first place. These vehicles tend to depreciate faster than Class A models because they are smaller and lighter. However, Class B RVs usually cost less money than Class A units.
Class C Motorhome Depreciation
The average lifespan of a Class C motorhome is around eight years. This is about half the life expectancy of a Class A motorhome. The reason for this is simple: most Class Cs are bought brand new, while Class A motorhomes are usually sold used. In addition, because Class Cs depreciate faster than Class A motorhomes, many owners choose to sell their motorhomes early rather than wait another few years.
Depreciation of RV Trailers and Fifth Wheels
A fifth-wheel trailer is basically a small house on wheels with all the comforts of home, including a full kitchen, bathroom, bedroom, living room, and even a fireplace. They come in many sizes, shapes, and styles. Some are designed specifically for camping, while others are built for daily use. There are also travel trailers, which are smaller versions of fifth wheels.
Travel trailers are not nearly as large as fifth wheels but offer plenty of space inside. And because they’re towed behind a vehicle, they don’t require a special permit like most RVs. Depending on the size, travel trailers cost anywhere from $10,000 to $100,000. Fifth wheels start at around $20,000 and go up to hundreds of thousands of dollars.
The price range is very wide, especially for travel trailers. For example, a basic travel trailer starts at about $20,000 and goes up to about $50,000. A luxury travel trailer costs much more, starting at about $80,000 and going up to well over $200,000. A fifth wheel starts at about $25,000 and goes up into the low six figures.
How Can You Prevent RV Depreciation?
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RV owners know how much work goes into maintaining their vehicles. But many don’t realize that the vehicle itself also depreciates over time. So while most people focus on the cost of repairs, it’s important to look at the vehicle’s total value over time. If you’re looking to buy a used RV, here are some things you can do to minimize the sum of money you lose when selling.
- Keep up with maintenance: Routine maintenance is one of the best ways to keep your RV running well. It includes regular oil changes, tire rotations, brake pads, transmission fluid flushes, and air filter replacements. Keeping up with these tasks helps ensure that your RV runs smoothly and safely.
- Make sure your RV is ready for winter: Winter weather can wreak havoc on RVs, especially those without proper heating systems. So before heading out on a trip, ensure your RV is properly prepared for the cold season. Check tires, batteries, hoses, lights, and windshield wipers to ensure everything works correctly. Also, ensure that your heater works properly and that your A/C unit is functioning properly.
- Clean it out: As soon as you return home from your next trip, take the opportunity to clean out the RV. Remove trash, empty cabinets, wash windows, and vacuum carpets and floors. If necessary, replace worn items such as seats and carpeting. You’ll want to give your RV a good cleaning before you list it for sale.
RVs lose value over time, but the memories created with them do not. So even if you don’t earn back your entire investment when you sell, most RVers will agree that it was well worth it. You cannot put a value tag on the satisfaction of exploring the great outdoors, even if you must consider RV depreciation when you buy or sell a used motorhome.
RV Depreciation: FAQs
How Much Do RVs Depreciate?
RV owners know that RVs depreciate quickly. However, many people don’t realize just how fast it happens.
The good news is that most RVs depreciate much slower than cars do. This makes sense because RVs are used for living spaces while cars are used for transportation.
Buying an RV can be great for life experiences. However, it would help if you considered selling it for cash before it depreciates more than you can handle.
What may surprise you is that RVs depreciate at different rates, depending upon the type of RV. In addition, some RVs depreciate faster than others.
To ensure that your RV depreciates slowly, you can do many things, including keeping the exterior well-maintained and repairing problems as soon as possible.
Are RVs a Good Investment?
RVing isn’t just about having a place to sleep. It’s about freedom and being able to go wherever and whenever you want. And while there are many reasons why people choose to do so, one major benefit is that you can take an RV anywhere without worrying about where you’ll park.
If you purchase a recreational vehicle, you won’t be stuck paying monthly rent. Instead, you’ll be able to use the vehicle as collateral for a loan against the equity you’ve built up over time. It means that even though you’re spending money on the vehicle itself, you’ll still make money off it later on down the road.
When you talk about investing in an RV, the first question on your mind should be the following: “how much money can I make?” Well, that depends on what type of RV you’re looking at and whether or not you’re willing to spend some extra cash on upgrades. So we looked at the different types of RVs and found that most of them aren’t worth purchasing unless you plan on doing extensive modifications.
What Is an RVs Average Lifespan?
The average lifespan of an RV depends on several factors, including the type of rig you buy, whether it is used primarily for camping or touring, and what maintenance you do yourself versus the maintenance provided by a specialist.
If you purchase a brand-new Class A motorhome, the chances are it will last for many years. However, if you choose to buy one over 20 years old, you might want to consider buying a newer model.
Most experts only talk of an “average lifespan” because RVs come in different models. Moreover, different owners would even use the same models differently. For example, some people like to travel around the country while others prefer staying put.
Some models have lasted for decades. However, most RVs are built to last about ten years. After that, the number of rigs still functioning well drops dramatically.