Motorhoming is a trend that has been steadily increasing in the last decade. According to Statista, the number of UK motorhomes in 2012 was 7,734. By the end of 2021, the UK National Caravan Council reported 16,608 new motorhomes had been registered, an increase of 8.25% compared to 2019.
However, when deciding whether to purchase a motorhome, every potential owner likes to be reassured over its long-term value. Points to consider include whether used motorhomes are worth purchasing, and how quickly they depreciate compared to brand-new motorhomes. There are many contributory factors when evaluating a motorhome investment.
The demand for a motorhome over the traditional car-plus-caravan has increased due to its compact build and ease of use. Overall length is vastly reduced and there is no longer the difficulty of negotiating road manoeuvres with an awkward pivot point. You can even rely on your regular driving licence with a motorhome weighing less than 3,500 kilograms. However, to get the best return on investment when purchasing a motorhome, it's helpful to understand how it might keep its value in the future.
Generally, a motorhome depreciates at a much slower rate than either caravans or cars. On average, at the end of three years, it should still retain 70% of its original value. It's the equivalent of a depreciation of 10% per year. In the same time frame, a car is usually worth only 40% of its original cost and a caravan 55%. A motorhome usually depreciates less the longer you own it. In subsequent years, the motorhome's depreciation rate is generally far less than 10% per year.
A brand-new motorhome usually has the latest in-built features, but it also has a higher purchase price. In terms of depreciation, as outlined above, it should still command around two-thirds of its original investment even after three years. On average, a motorhome performs well until it reaches either a maximum of 200,000 miles, or twenty years of moderate use.
Used motorhomes can often be purchased for a fraction of the cost of a new model. As the rate of depreciation slows dramatically after three years, a used motorhome should also retain a high proportion of its value, particularly if it has been well-cared for.
When assessing the value of an individual motorhome, a range of factors have to be considered. Wear and tear, demand, and even the vehicle's brand can influence depreciation.
The more deterioration your motorhome sustains, the more its value might reduce. On average, a motorhome is used up to five times a year, for short bank holiday breaks and extended trips during the summer. Under these circumstances, the majority of motorhomes might accrue between 3,000 and 5,000 miles per year, and suffer a minimum of wear and tear.
If you decide to rent out your motorhome when you're not using it, factors such as additional mileage, and stress on the engine and tyres can decrease its value. The interior could also suffer more wear and tear, and be in need of refurbishment much sooner than if the motorhome is for your own private use.
In general, the quality of new motorhomes is exceptionally high. The industry includes many successful manufacturers. One of the most famous is Hymer, whose founder, Erwin Hymer, invented the very first motorhome in 1961. The company continues to manufacture award-winning Hymer motorhomes in Bad Waldsee, Germany. In 2017, the company also acquired Elddis of Consett, County Durham.
Auto-Trail has been producing award-winning motorhomes since 1982 when the company was established in Grimsby, Lincolnshire. Other reliable brands include Yorkshire-based Swift, and Rapido of France who also manufacture Itineo motorhomes. Adria motorhomes are made in Slovenia and have earned an excellent reputation for high performance models.
The demand for a motorhome can be affected by holiday trends and economic events. According to Finder.com, two million people in the UK enjoy motorhome and caravan holidays every year.
The economic climate is another factor that can affect the depreciation of a motorhome. As the cost of living crisis deepens, many people might consider luxury, hotel-based holidays an expensive indulgence. Market forecasts might influence people to choose independent motorhome holidays instead. As the demand for new and used motorhomes increases, they should hold their value more effectively.
Market demand can have a significant impact on motorhome depreciation. When the demand for motorhomes is high, the value of motorhomes will generally appreciate as people are willing to pay more for them. On the other hand, when demand is low, the value of motorhomes will usually depreciate as fewer people are willing to pay the asking price. In addition, the supply and demand of motorhomes can also affect depreciation. If there is a larger supply of motorhomes than there is demand, the value of motorhomes will likely depreciate as buyers have more options to choose from.
A motorhome that is equipped with well-maintained appliances and furnishings will generally retain its value better than one with outdated or worn-out ones. Ultimately, the more features a motorhome has, the more expensive it will be; however, these additional features may also decrease the amount of depreciation.
Adding items like solar panels or extra sleeping berths will raise the value of your motorhome when you come to sell your motorhome. Making it attractive and functional will also help make it a good deal if you’re hiring your motorhome out. Other features that are likely to add value to your motorhome include a fridge, oven and smart furnishings. But be careful – amateur additions, or additions of low value, can devalue your motorhome and have a negative effect on depreciation.
Your motorhome will fall into a Class A or Class B category. On average, both types usually have different depreciation rates.
Class A motorhome - This generally has a heavy-duty frame that requires the support of a commercial chassis. It's at the high end of the motorhome range and often has a length of twenty-five feet. In America, the Class A motorhome can reach juggernaut proportions of forty-five feet in length.
In three years, the average depreciation rate for a Class A motorhome is 30% to 45%. At five years, the rate rises to 65%. After ten years, it's around 75%.
Class B motorhome - This is usually a compact model with a length of between seventeen and twenty-three feet. It uses a van chassis, making it lighter and easier to manoeuvre than a Class A version. A versatile Class B motorhome can usually negotiate busy streets and country lanes with ease. As the most popular version, there are more models to choose from and it should be easier to re-sell.
At three years, a Class B motorhome usually has a depreciation rate of 30% to 33%. In five years, the rate rises to 50%. After ten years, the rate should be around 60%.
Depreciation figures are only an estimate. There are many actions you can take to help your motorhome retain its best possible value over the years. It's advisable to maintain a log book of every service to reassure future buyers of your motorhome's reliability. Always keep receipts of any refurbishment work to prove how you have improved your motorhome's worth.
Like any vehicle, a motorhome benefits from a regular service. On average, the engine and chassis should be serviced every two years. A legal requirement is an annual MOT test for motorhomes older than three years. In addition, the interior must have a professional habitation check once each year. This ensures appliances such as gas hobs and water systems are functioning safely.
Travelling around the coast can lead to an increased risk of corrosion through salt-laden sea water. Regularly wax the exterior and rinse off salt water as soon as possible. Thoroughly clean the interior at regular intervals. Make any necessary repairs to fixtures and fittings.
It's important to winterise your motorhome during the colder months and if it's not in use consider placing it in storage. It's the most effective method of guarding against adverse weather conditions. Taking all of the necessary steps, such as draining the water system, keeping the leisure battery charged, inflating tyres, installing vent covers, and so on, will all help towards preventing costly winter damage.
A motorhome usually has two, four or six berths, but facilities to include additional guests could help reduce depreciation. Portable bunks or a side awning could be a solution. An alternative is to install a high top or elevating roof to create an upper sleeping area. However, for best results, this type of alteration should be carried out professionally.
Q: Which model of motorhome depreciates the least?
A: Established brands with a reliable reputation usually offer the best value in terms of depreciation.
Q: Does a German motorhome depreciate less?
A: Any motorhome stands an excellent chance of depreciation at a slow rate if it has been well-maintained.
Q: When is the best time of year to purchase a motorhome?
A: October to February are traditionally the best months to purchase motorhomes. January in particular is often a popular month for bargains. It's usually when owners are trading in their old model for a brand-new motorhome.
Q: How much does it cost to maintain a motorhome?
A: Allow around £1,000 per annum for regular maintenance and refurbishment.
Q: Is it worth renting out my motorhome?
A: It might be possible to charge around £150 per day, however, this will likely lead to an increase in maintenance costs and can impact your manufacturer warranty.
Q: Are motorhomes a good investment?
A: A motorhome is an excellent investment for adventurous holidays without the restrictions of hotel accommodation. Keep the value of your motorhome as high as possible through a regime of regular maintenance. A well-cared for motorhome should usually depreciate much slower than a neglected one.
