It’s no secret that buying a motorhome is a significant investment. But, it’s also a lifestyle choice and a good one at that. When buying a motorhome, you will undoubtedly be reaping the benefits of everything van life has to offer. As with any investment, you’ll want to ensure that you protect your asset by ensuring it holds its value and ultimately slows down the rate of depreciation. That’s why we’re helping you understand everything there is to know about motorhome depreciation.
To help, we have put together this guide on motorhome depreciation. Whether you’re already a motorhome owner or thinking about taking the leap, this will help guide you on everything you need to know about depreciation and protecting your investment.
Unlike investing in other big-ticket items such as property, a vehicle is considered a depreciating item. Depreciation is the term given to a reduction in the value of an asset over time.
This decrease will depend on several factors such as make, model, year, wear and tear and more. As a motorhome owner, it is important to understand these factors so you can use them to inform your purchasing and usage decisions. Knowing how to protect your asset will ultimately help slow the rate of depreciation and maximise the value of your motorhome.
There is a common adage that a vehicle will depreciate ‘as soon as you drive it off the lot’. While there is some truth to this, it isn’t the whole picture. There are several factors that will affect the value of an RV during its lifespan. We’ve narrowed this down to a list of the top factors affecting the depreciation of motorhomes.
When you own an RV, you’ll want to make the most of it and go explore the beauty that Australia has to offer. However, as you use your RV, some wear and tear is expected. This gradual wear is one of the leading causes of motorhome depreciation. While not completely avoidable, this can be slowed and managed with proper cleaning and caring for your motorhome.
The chassis of a motorhome will vary in cost, quality, and type of driving power (such as rear-wheel drive, front-wheel drive and all-wheel drive). These are all factors that can impact the value of the vehicle.
For this reason, you will notice that motorhome manufacturers will choose certain types of chassis for their RVs. For example, some companies may prefer a rear-wheel-drive as their motorhome chassis of choice for its superior weight distribution. However, there are many factors that affect the depreciation of a chassis. Buying from a trusted brand is a sure and simple way to take the guesswork out of choosing the right one for your motorhome.
When it comes to reselling anything, supply and demand will affect how valuable your asset is. Once you buy a motorhome, its value heavily relies on what else is available in the market. For example, if you buy from a dealership that releases a new model every few years, the value of the purchased vehicle will decline as each model is released. On the other hand, if there is a shortage of motorhomes, demand and value will increase.
If you’re thinking about selling your motorhome privately and have the flexibility on when you sell, you might want to wait until the demand is there. Otherwise, if you are looking for a simple way to sell your RV and want a quick, easy and hassle-free deal, KEA is always on the lookout for good quality, late-model motorhomes and campervans. Want to learn more? Chat with the KEA team today.
As a motorhome is a significant investment, it’s important you choose the brand wisely. Buying a motorhome from a reputable and trusted brand can help maximise the resell value and slow down depreciation.
How quickly a motorhome depreciates depends on several factors, but generally, you can expect between 10-22% a year. Compared to a car, this is a bargain. New cars are typically said to depreciate by up to 50% in the first few years alone.
In contrast to a car, a motorhome will generally devalue over a longer period of time, i.e. an older motorhome in excellent condition can retain good value for many years. Best of all, it is far easier to add value to a motorhome to help reduce the depreciative hit than it is for a car.
For more information on calculating the value and depreciation of your RV, chat with your local certified KEA dealership today. With over 25 years in the industry, our team is a wealth of knowledge and will be able to help give you an accurate appraisal of your RV.
Although depreciation is an inevitable part of motorhome ownership, there are a number of steps you can take to add value and ultimately slow its depreciation.
Looking after your RV is the simplest and most effective way to slow down depreciation. Things like staying on top of the regular RV maintenance and regular cleaning will ensure small issues don’t pile up. Taking the time to do these regular checks may seem unimportant in the short term. However, these small preventative measures all add up and will ultimately help extend the life of your RV.
This includes oil, filter, brakes check, 20-points check, house/safety and exterior check.
This includes oil, filter, fluid change, air filter change, fuel filter change, 30-point check, house/safety and exterior check.
When you’re not using your motorhome, it is important that you store it well.
Storing your campervan somewhere that protects it from the elements will prevent unnecessary wear and tear or damage from weather and other conditions. Many opt to park their campervan in a garage on their property. However, if you do not have space or prefer it to be in more secure storage, there are plenty of storage options that specialise in campervans.
There are endless options for floor plans, add-ons, and modifications to help make your RV as travel-friendly and enjoyable to travel in as possible. The best part? These RV add-ons will also help to increase the value of your investment. For example, adding a diesel heater to keep warm in the winter or a bike rack for more on the road adventures. This will also be attractive to buyers when it comes around to selling your motorhome.
If you own a motorhome and are looking to modify it to increase its value, be sure to chat with a certified KEA dealership. We have a range of services that cater to modifying or refurbishing your motorhome. These modifications can include things like upholstery, fridge installations, awnings, solar panels, external BBQs, and more. Whether it's a small addition or an entire refurbishment, these changes are a great way to add value and help you enjoy your time on the road.
Similarly to buying a brand new car, a new motorhome is likely to experience the steepest rate of depreciation in its first few years and then plateau. Buying second-hand is a great way to save some money upfront while still maximising the resale value.
As a motorhome is a significant investment, buying from a known and trusted brand is always recommended. Ensuring the brand you buy from has a good reputation will help you ensure you are getting a quality motorhome. Buying from a trusted brand will also help when it comes to reselling or trading in your motorhome. In short - not every dealership will accept every kind of motorhome. However, buying from a reputable brand simplifies this process and increases your chances of a successful sale at a good price.
KEA is a trusted brand known for our premium quality of new and used motorhomes. KEA has over 25 years of experience building motorhomes that blend comfort, style and unmatched reliability. When you buy from KEA, you also get access to:
We're a part of thl global travelling system with over 25 years of RV manufacturing and trading experience. KEA is known for producing comfortable, reliable RVs.
We provide excellent aftersale service options.
Our service centres have availability of parts - giving you the best access to parts when needed.
Enjoy the peace of mind of a minimum 12-month mechanical warranty when you buy from a KEA-certified dealer.
We have KEA-certified dealers throughout Australia. When you buy a KEA motorhome, you will have access to this support network.
A motorhome is a great way to see and do more in Australia. While this can be a large investment, with the right care and considerations, you can slow depreciation and ultimately maximise your investment.
Ready to invest in your perfect motorhome? Visit your local KEA dealership and check out our range of motorhomes for sale today. The KEA team are a wealth of information when it comes to motorhome buying and ownership and will happily help you find the right motorhome.