Camper Trailers: Understanding Depreciation And Resale Value

Camper trailers, like all recreational vehicles, depreciate over time. The rate of depreciation depends on several factors, including the type of camper trailer, its age, mileage, maintenance, and brand.

According to Camper Report, the depreciation rate for camper trailers is around 21% in the first year, with a further 5% drop in the second year. By the fifth year, camper trailers are expected to have depreciated by around 37%.

The Camping Nerd provides a more detailed breakdown of camper trailer depreciation rates, suggesting that in the first year, camper trailers can depreciate by anywhere between 5% and 20%, with an average depreciation rate of 19.3%. In the second year, the depreciation rate slows down slightly, with an average rate of 3.1%. By the fifth year, camper trailers are expected to have depreciated by around 31.3%.

RV Share reports similar findings, stating that camper trailers tend to drop in value by about 30% in the first three years of ownership. They also highlight that high mileage, water damage, visible wear and tear, and damaged or outdated appliances can accelerate depreciation.

On the other hand, factors such as regular maintenance, covered storage, and brand reputation can help slow down depreciation.

The first year of ownership sees the most drastic dip in value

The depreciation continues, but at a slower rate. After two years, your RV will be worth 22% less than its original value. After three years, it will be worth 26.7% less. By the time it's five years old, your RV will be worth 35.98% less than its original value.

This depreciation is because RVs are expected to have significant issues within the first few years of ownership. By the eighth year, it is pretty much guaranteed that something will need to be repaired or replaced.

However, depreciation isn't the only factor that affects the value of an RV. The RV's appearance, maintenance, and brand also play a role. For example, external damages like dents and scratches can cause drastic depreciation. On the other hand, keeping your RV in good condition and ensuring that it looks fantastic on the outside can help to maintain or even increase its value.

In addition, the RV's mileage doesn't have a significant impact on its value. Instead, time is the hardest factor to combat when it comes to depreciation. This means that, even if your RV has low mileage, it will still lose value over time.

Therefore, if you're looking to buy an RV, it may be more cost-effective to purchase a used one that is a few years old. This way, you can avoid the initial steep depreciation that occurs in the first year of ownership.

The value of an RV is strongly tied to the year rather than the mileage

When calculating the depreciation rate on your RV, it is essential to know the difference between the MSRP and the invoice price. Typically, RV dealers will mark up the sale price by 30% to 35% with the expectation that there will be room for negotiation.

The depreciation rate of an RV also depends on its class. Class A and Class C vehicles depreciate at a similar rate, while Class C RVs depreciate more slowly and hold their value slightly better. Travel trailers and fifth wheels also depreciate over time, with the latter depreciating at a slower rate after the first five years.

When purchasing an RV, it is best to wait for 5 to 8 years to minimize depreciation. This is because, by the five-year mark, the RV will have already undergone significant depreciation, and you will be able to get a good deal. Additionally, new RVs are less reliable than older ones as they are more likely to have manufacturing issues that will need to be fixed.

It is also important to note that low mileage is not always a good thing when it comes to RV depreciation. RVs are built to be driven, so if a vehicle has very low mileage, it may have underlying issues due to sitting stationary for too long.

The depreciation rate varies among classes

Class A Motorhomes

Class A motorhomes are the most extensive and most expensive of these classes. They can be up to 45 feet in length and cost between $100,000 and $200,000. These RVs depreciate quickly. After three years of ownership, your RV is likely to be worth approximately 30% less than when you purchased it. After ten years of ownership, your Class A RV will depreciate to less than half of what you paid for it.

Class C Motorhomes

Of all the motorized campers, the Class C vehicles depreciate the slowest. With a length of 33 feet, a Class C RV is the sweet spot between a camper van and tour bus. After five years of life with a Class C vehicle, you can expect a rate of about 38% depreciation. After another five years, that rate barely trips 50%.

Travel Trailers

Travel trailers, also known as camping trailers, have an astounding size range. They can be compact enough to be towed by an SUV or large enough to dwarf a sizeable fifth wheel. Though their size varies greatly, the general rate of depreciation for these camping trailers does not. After five years of owning a travel trailer, it’s still worth approximately 60% of what you paid for it.

Fifth Wheels

Fifth wheels are large, towable apartments. They can be equipped with all the comforts of home, making them an excellent choice for a family. However, this life of luxury comes at a sizeable depreciation cost. After only five years of touring the land with your fifth wheel, it has decreased in value by 45%. After a total of ten years, this percentage jumps to 71%.

The depreciation rate is also influenced by the RV's brand and quality

The brand and quality of an RV play a significant role in determining its depreciation rate. Popular and well-known brands, such as Winnebago, Airstream, and Coachmen, tend to depreciate slower than lesser-known brands. This is due to their established reputation for producing high-quality RVs that stand the test of time. Additionally, higher-quality and more popular RV designs may hold their value longer than cheaper alternatives.

When it comes to RV classes, Class A motorhomes, the largest and most expensive type, tend to depreciate the fastest. On the other hand, Class C motorhomes, which are smaller and more affordable, have a slower depreciation rate. Travel trailers and fifth wheels, which don't have built-in motors, also depreciate at a slower rate compared to Class A and B motorhomes.

The initial depreciation of an RV is significant, with a loss of 20-25% of its value as soon as it leaves the dealership. This is something to consider when deciding between buying a new or used RV. While a new RV may offer the appeal of being the first owner and having customization options, it comes with a higher price tag and immediate depreciation. Used RVs, on the other hand, have already undergone this initial depreciation and can be a more affordable option.

In addition to the brand, class, and age of an RV, other factors that influence depreciation include external damage, maintenance records, water damage, appliance condition, and storage conditions.

The economy and regional demand can also affect the depreciation rate

Regional demand for camper trailers may vary from one location to another. Places that are well-known tourist regions or destinations with a significant amount of outdoor recreational activities or camping sites will have a higher demand for camper trailers. This increased demand can result in slower depreciation rates for used RVs in these areas.

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