Like most vehicles, an RV’s value diminishes with age. The longer you own an RV, the less value it has in the eyes of potential buyers. So, to set yourself up for success when eventually selling or trading in your RV, it helps to know how to offset RV depreciation.
The good news? Many factors influence how quickly an RV depreciates—some you can control, others less. As a current or potential RV owner, you should understand how RV depreciation works to maximize your resale value or improve your options when shopping for your next RV.
Here, we cover some basics about RV depreciation and discuss how to offset the largest contributing factors to improve your RV’s resale value.
How Does RV Depreciation Work?
Each year, RV manufacturers release new models and updates to previous models. Similar to the auto industry, new models incorporate the latest technology, newest innovations, and improvements over the prior year’s selection. Understandably, the previous year’s models decrease in value when new models are released. Typically, this happens whether they’ve been purchased or not, but especially if they have been.
RVer’s Tip: The public typically gets a first look at new model releases at the Hershey RV Show in September and then again at the Tampa RV Show in January.
Two main factors influence depreciation. First, as mentioned, older models don’t include the same new features and upgrades as the current year. Second, used vehicles simply aren’t as valuable to the market. As soon as you purchase an RV, its value goes down. After all, it’s now a “used” RV instead of a new RV. With that designation comes assumptions from potential buyers about wear and tear, disrepair, and potential damage.
Like automobiles, RVs depreciate relatively quickly compared to investments like houses. But just how quickly?
RV Depreciation Rate
The most depreciation occurs when you drive your RV off the lot, losing around a quarter of its value, depending on several factors. In the first several years, the depreciation rate remains high. This can be agitated by increased usage, wear and tear, or if the vehicle sustains significant damage.
Depreciation occurs on a curve. As your vehicle ages, the depreciation rate decreases, but that still means your vehicle loses value year over year, just at a lower rate. The following factors affect the RV depreciation rate.
Overall RV Condition
RVs are built for activity, but the closer you can keep them to their original condition, the less they will depreciate. That means performing recommended maintenance to keep everything in good working condition. Looks matter, too. Even cosmetic changes can impact how quickly your RV depreciates. Potential buyers will look for signs of cosmetic wear and tear and minor damage to indicate how well you’ve treated your RV.
Type of RV
Depreciation rates will vary, even across types. But Class A, Class B, and fifth wheel RVs are noted to depreciate faster than others. This is likely because these RV types are more luxurious or have a greater curb appeal and popularity (Class Bs). The price RVers pay for some state-of-the-art, brand-name, luxury vehicles also leads those same vehicles to depreciate more quickly—an interesting paradox.
Brand
RVers want campers that last. RV manufacturers grow their reputation on factors like construction quality, affordability, and durability. RVs from brands that have demonstrated a history of long-lasting products will maintain their value longer—see Airstream. Consider the brand’s reputation when purchasing an RV that you eventually plan to sell.
Usage/Mileage/Model Year
The more an RV has been used, the more likely it is to suffer damage or significant wear and tear. An RV with high mileage or usage may require replacement parts. Extensive mileage will depreciate the value of your RV, but the model year will likely play a more significant role.
Warranty
RVs with their warranties still in place will likely retain more value. But once that warranty expires, that value will diminish, too. Keep track of all warranty information, as RVs typically have several different kinds of warranties that cover various components.
Unpredictable RV Depreciation Factors
Some factors that affect depreciation aren’t easily predictable. Let’s take a look at a few examples:
Model Year Upgrades
When a new model year incorporates significant new changes and updates, previous-year models may depreciate more quickly, as more people want the camper with the new features.
Unexpected Market Changes
Changes in the market can drastically change how much RVs depreciate. It’s nearly impossible to predict these. During the pandemic, for example, we saw an upheaval in the RV market. The higher demand helped used RVs hold on to more of their value for longer. Or what about when new year models go the route of decontenting to offer a lower price point? In some years, a used RV will hold up better based on the new releases.
Do Used RVs Depreciate Slower Than New?
The rate of depreciation changes throughout an RV’s lifespan. Typically, RVs depreciate the most when first purchased and then in the several subsequent years. As the years go on, the rate of depreciation slows. This is why some RVers try to purchase used RVs during that Goldilocks period when the RV is still new enough to be in good condition but has already undergone the bulk of its depreciation.
Overall, buying a used RV will help offset the RV depreciation rate.
Even buying a used camper just a year old reduces how much depreciation that second owner will experience. But there are other considerations. For example, your selection decreases when shopping for pre-owned units. Furthermore, you must be more diligent to understand why the previous owners are so readily willing to part with their new RV. Have their circumstances just changed, or is there something wrong with that camper?
How Do RVs Hold Their Value?
Knowing how much a new RV depreciates can be concerning, especially when you are in the market for a new camper. But, once purchased, you can take early action to offset some of that depreciation. Consider the following factors you can control that contribute to RV depreciation.
Proper Care
Realistically, your RV does a lot of sitting, which can cause significant aging and depreciation. Unless you live and travel in your RV full-time, it likely goes unused for most of the year. Even frequent weekend trips mean your RV sits in the driveway during the week. And the winter? Another issue to cause concern.
Covering, properly storing, and winterizing your RV—along with other care—can help improve its lifespan, health, and overall value. Don’t let neglect cause your RV to depreciate more quickly than needed.
Routine Maintenance
Like regular oil changes on a car, regular preventative RV maintenance can significantly offset RV depreciation. Not only that, but it will save you on repair costs and reduce the amount of time you can’t use your RV because it’s in the shop. We recommend you keep a record of any maintenance performed.
Routine Inspection
Catch small issues before they become big issues. RVs can age more quickly if you aren’t proactive about inspecting for problems before they worsen or damage other parts of your RV. For example, regularly inspecting your roof and seals can be a huge deterrent against big repairs that will further depreciate your RV’s value.
Thoughtful Upgrades
While the “extras” you add to your RV certainly impact your bank account in the short term, they don’t always add long-term value to your RV. In fact, some additions or modifications can negatively impact your RV’s value. Consider how any RV upgrades will impact its resell value: Are the modifications you perform improving your RV universally or just for you and your family? Appliance upgrades, for example, can typically help sustain an RV’s value.
Monitoring RV Depreciation
We’ve discussed how the market is a factor of RV depreciation that you can’t necessarily control. It’s true: your RV’s value might change significantly regardless of how well you maintain it. But that doesn’t mean you are defenseless. Knowing the current value of your RV can inform your buying and selling decisions and can prevent you from absorbing RV depreciation.
Consider resources like the RV Valuator. This online tool provides an accurate, real-time analysis of your RV’s current value based on several external factors. By keeping a close watch on your RV’s value, you can better decide when to sell it or when to wait.
Resources like the National Automobile Dealers Association (NADA) can also help you monitor your RV’s current trade-in value.
What Type of RV Depreciates the Least?
Overall, RVs with a lower initial MSRP carry less overall depreciation risk than higher-priced luxury RVs. This is because they simply cost less. In other words, even if it depreciates at the same rate as a luxury RV, you stand to lose less money overall.
The RVs most at risk of significant depreciation are fifth wheels and motorhomes. Class C’s generally hold up the best in the motorhome segment. In general, travel trailers will depreciate the least. Of these, smaller pop up trailers will likely depreciate the least amount over time. But the initial investment isn’t as significant. Luxury fifth wheel travel trailers tend to experience fairly abrupt RV depreciation.
So, if all this talk about RV depreciation has you thinking more about pre-owned RVs, here are a few follow-up articles that may pique your interest:
- How Much Does an RV Cost to Own?
- Four Benefits of Buying a Used RV
- How Old Is Too Old for a Used RV?
- Why A Used RV May Be A Good Option
Veteran RV owners: How have you been able to offset RV depreciation? Or have you learned any lessons? Let us know in the comments below!
