Motorhome Depreciation Explained

Owning a motorhome is a brilliant experience, but when you’re ready to sell you might want to know how much you’ll get. So, do motorhomes hold their value? In this blog, we’ll talk you through motorhome depreciation, the factors that increase and decrease rates and what you can do to help your motorhome retain its value.

Are you a first-time buyer? At Auto Finance we’ve got a range of motorhome finance options available.

What is motorhome depreciation?

Depreciation refers to the difference in the value of your vehicle from when you bought it to when you sold it. Motorhome depreciation refers to the reduction in the value of a motorhome.

For standard vehicles, the value drops around 15 -35% in the first year, but depreciation rates differ for larger vehicles like motorhomes.

What factors affect motorhome depreciation?

If you’re asking the question “Do motorhomes hold their value?” there are a few factors that can influence this and cause an increase or decrease in depreciation rate. 

Model 

Newer models typically hold more value than older motorhome models. If you own a motorhome that was registered before 1984, this is classed as a historic motor home and the types of taxes you pay on the vehicle and amenities influence its value. 

Our dedicated blog has more information on motorhome classes to help you understand the differences. 

Brand

A popular and reliable brand of motorhome is likely to depreciate slower than less popular or well-known brands. Certain brands may also have a different standing in other countries, so knowing which brands are favoured in the UK will help your motorhome hold some of its value if you intend to sell it here.

Market Events

Things like an economic downturn or the global pandemic can increase or decrease the value of motorhomes. If there are issues with funding and sourcing materials to manufacture motorhomes, this will cause an increase in demand for second-hand models, in turn raising their prices.

Similarly, if the market becomes oversaturated or the economy takes a drastic hit, motorhomes will decrease in value.

Usage and condition

A touring motorhome used all year round is likely to have a higher depreciation rate. If you only use your motorhome a few times a year it’s likely to have a lower depreciation rate and be in better condition.

The best way to ensure you get the full value for your money however is to enjoy your motorhome and make sure you use it! If you’ve made a large investment you should make the most of it and get on the road whenever you can. 

Modification and renovations  

Upgrading existing components and hiring a professional to help modernise your motorhome can increase the value of your motorhome. However, if you opt for DIY modifications on your motorhome this can actually cause your motorhome to lose value if your renovations are done poorly or deemed unnecessary.

What can be done to reduce motorhome depreciation?

There are a few tricks to keeping your motorhome in top condition which will in turn reduce the rate of depreciation. 

Servicing and maintenance 

Ensure you service your motorhome and complete an MOT every year. This will ensure your motorhome is in the best working condition and any issues can be easily fixed before they become a problem.

For more information, check out our dedicated blog on motorhome MOTs.

Professional refurbishment

As previously mentioned, a sure way of decreasing your motorhome’s value is poorly fitted installations and refurbishments. Ensure that any work carried out on your vehicle is done by a professional to heighten the performance and aesthetic of your motorhome. This will in turn help to keep its value high. 

Remember, if you’ve taken out a motorhome finance loan you should avoid any large-scale renovation as the vehicle is not yours to modify until the loan is fully repaid. 

Protect against the elements 

Motorhomes are great for travel all year round, but harsh weather conditions like heavy wind, rain and snow can take a toll on your motorhome. To prevent damage and uncostly repairs, take preventative measures and protect your motorhome against water and weather damage.

For an in-depth exploration of the steps to protecting your motorhome, read our blog on weatherproofing your caravan. 

Store when not in use

The easiest way to keep your motorhome deprivation low is to store it safely when you’re not using it. It might be convenient to park your motorhome on the road but this exposes it to the elements and can create damage over time. 

To keep your vehicle in top condition and keep its value high, place your motorhome in storage in a dry, safe indoor space. 

Magnificent motorhomes with Auto Finance

Selling your motorhome might be a distant thought and you may not have even purchased one yet, but whenever you decide to sell, we’ve got a dedicated guide on how to sell your motorhome to help you through the process. 

If you’re wanting to get the ball rolling and purchase a motorhome there’s no better place than Auto Finance. Our loans give you the freedom and flexibility to select how much you want to borrow and when to repay, making your dream of owning a caravan an affordable reality. 

Use our motorhome finance calculator to see how much you’ll be expected to pay each month or get in touch for an expert quote and take the first steps towards owning the perfect motorhome!