Here is a complete guide that explains RV depreciation year by year. We have added easy methods to calculate its value along with the factors that are affecting the worth of your RV.
How Much Does an RV Depreciate Per Year? RV depreciates each year differently, they can depreciate approximately 15-21% when you drive it off the lot. The percentages keep on increasing until it matches with its scrap value.
The new RV has more purchasing value as compared to the used one. Buying a new trailer is like a dream come true that others only think about; the new one comes with many drawbacks.
- 1 How Much Does an RV Depreciate Per Year?
- 1.1 How to evaluate the depreciation value of your RV?
- 1.2 What are the factors affecting the depreciation of your RV?
- 1.3 Estimated depreciation value
- 1.4 Methods to increase RV worth
How Much Does an RV Depreciate Per Year?
Depreciation is the decrease of the actual value of any automobile. It happens due to the following problems like the excessive tear and wears of the trailer due to continuous use or the time pass after purchasing it.
The RV of better and popular brands retain their actual value more than the inexpensive and poorly prepared ones. The value of the new camper decreases up to 15-21% after driving it off the lot.
The average recreational vehicles reach half the price of their actual purchasing price after five to six years of use. You can approximately lose 20 to 35% of its original price in just the first two to three years of service.
The other factor that decreases its actual value with time is the fuel value and the economic circumstances of the region. The depreciation value of an RV stops when it is equal to the trailer’s Scarpe value.
The dealer also plays a massive role during the purchase of the trailer. They help you buy a new RV at a discount price because no one can afford the total cost of the vehicle.
They can help you buy a new vehicle at the discount price of at least 20-25% with an increased interest rate.
Its maintenance also plays a role in depreciation because the well-maintained trailer will start to appreciate after some time.
Make sure to do all the planning before buying it and save money according to your preferred model.
It will help you a lot because if you cannot afford to pay cash at the time of purchase, the dealer tries to make a deal by offering you a monthly payment with an interest rate.
It will significantly impose a burden on you because you continuously pay the monthly payment with the interest rate for several years.
On the other hand, the depreciation rate worsens the situation by decreasing its actual value. When you clear all your monthly payments, your vehicle worth less than its actual value.
It is good to buy a new trailer by paying total cash when purchasing. You can also buy a used one to prevent all these above mention problems.
It will help you buy an RV within your budget limit. You can pay all the cash immediately, so there is no problem with the monthly payment and interest system.
Most of the used travel trailers are sold in the market after two to five years of use. This RV is mostly in good condition and saves all the owner’s expenses for making them brand new. Keep in mind that you buy a used trailer that is present in good condition.
The depreciation value of a used trailer does not exist because someone pays all the amount of depreciation after many years of use.
There is no tension of paying the interest so you can live your life peacefully and enjoy your vacations without any pressure and anxiety.
The mileage must consider because a low mileage trailer is more preferred than a high one. The engine’s condition and everything present inside the hood are vital for depreciation.
The campers with an inspection record and its high rating demand increased price in the market during resale than the trailers with low and unreliable ratings.
The interior condition of the vehicle also affects its actual worth in the market. All these factors can define the accurate price of your RV.
How to evaluate the depreciation value of your RV?
The method to calculate the depreciation rate of your camper is complicated and takes a lot of your time.
Many factors can play a role in inspecting the overall worth of your trailer and its depreciation value.
There are different online tools available that make this task easy for you, like NADA RV value.
You can easily use them to calculate its price. For knowing the exact worth, keep in mind some factors like the model, year, brand, and size of your RV.
You can also calculate its actual cost by taking some paper and a pencil. Perform the estimation work to know the depreciated value by using percentages tables of depreciation.
You need to subtract the percentage in the depreciation table with the amount you paid for the trailer. In this way, you will find the depreciated value of your RV.
What are the factors affecting the depreciation of your RV?
Different factors define your RV resale price; if you are buying a new camper, try to buy it by paying all the cash at the time of the deal.
Class of the vehicle
There are three different classes of motorhome the class A, B, and C, and then comes Rv trailers. The actual rate of RV depends on their classes, and they depreciate according to them.
The RV of class A motorhomes are more costly and have a rapid rate of depreciation than other classes of Rv. Class B is less expensive and has a trim body configuration compared to classes A and C.
The class C and fifth-wheel trailers have a high depreciation rate because, like class A they have a larger rig.
Class B and other travel trailer hold their price more than these larger rig vehicles.
Presence of external damages
The aesthetic appearance of your vehicle plays a huge role in the actual value of your camper.
The trailer that contains any damage in the external compartment has more depreciation value. The presence of scratches, dents, and dings can decrease the vehicle’s actual price more rapidly.
When you try to sell your RV, keep in mind that the first impression is the last one; protect your campers from all the external damages.
You can quickly treat all these damages by finding the real cause of their happening and then use techniques to solve them accordingly. The maintenance techniques are pretty economical. You can easily afford them.
The RV that looks great from the outside maintains its original value more than the Rv that contains external damages.
Maintenance of vehicle and inspection record
The RV present in good condition prefer more by the buyer than the poorly maintained one. The good practice of maintenance increases the life expectancy of your vehicle and has a significant impact on the dealer and the buyer.
You can also increase the resale price of your vehicle by applying all maintenance techniques.
Most buyers want to see all the forms of any repair and the upgrades or maintenance schedule you made on your trailer.
The RV depreciates more if there is no paperwork or record presence of any maintenance techniques you applied on your vehicle.
Suppose the records of changing the oil in your camper, parts replaced, and the certificate of yearly inspection test are not present when you try to resell your trailer. In that case, it will contribute towards lowering its overall worth.
Water Damage inside the RV
Most RVs have an attached toilet, shower area, and kitchen sink. All of these are significant sources of water damage.
The water tank present in the base of the RV takes all the used water from these sources.
If you cannot find the real cause behind the leakage and the suitable treatment for this problem, it will significantly damage your trailer.
The excessive water level results in mold growth, rotting, and rusting of the camper. Sometimes the sealing of the water pipes also gets damaged due to sunlight, heavy rain, and winds.
The exterior sealing and seam caulking are more prone to injuries as compare to the interior one. It will significantly contribute to increasing the moisture level.
Strength of brand
It is a new norm in society that everyone considers the most popular brand with something that has high-quality products than others.
The RV also has influential brand power in its market. When you go for purchasing an Rv, you often heard the names of Winnebago, airstream, coachmen camper, travel trailers.
You are more likely to buy the trailer associated with the high brand name than the Rv of the unknown brand name. RV’s famous brand considers as a high-quality camper with a good furnishing interior and exterior.
Everyone has a different preference when buying anything like a perfume bottle or a suitable vehicle.
People most likely buy a trailer of their own trusted and well-known brand so that they can get a reasonable price when they resale their camper. The RV of unknown brands has more depreciating value than the famous brand.
Wear out of appliances
The appliances are another factor that can affect the depreciation rate of your trailer.
Most of the electronic equipment installed in the RV does not remain in its accurate state after 6 to 7 years of use.
The RV with a microwave, electric stoves, refrigerator, television, and air conditioners installed in them has more depreciation value than others because these appliances stop working after some time.
Make sure that are your electronics are in good working condition. The other drawback of technology is that it made the previously install electronic equipment an old one.
It is necessary to change your old equipment to the new one if the appliances are not good. It will significantly affect the rate of depreciation.
Ensure that everything is clean and working appropriately and matches the new technology standards.
The storage also plays a significant role in determining the depreciation value of the camper. The most dangerous thing you could do to your trailer is to store it outdoors.
It will cause excessive rusting of your trailer. The water damage inside the trailer is more detrimental than the outside. It can cause a lot of your expenses.
While storing it indoors, make sure that the area is free from pests and rodents.
The change in the weather condition like excessive cold and warmth makes your RV the best place for inviting different pests and rodents in it.
The rodents can damage the wiring and other accessories. Rodents and pests can also spread various fatal diseases. It is vital to store your RV in a safe area that has proper sunlight.
You can also keep them in a large storage lot that gives you the best storage services. It can significantly prevent all the internal and external damages.
The technique to avoid damages and pest entry in your trailer significantly decreases the depreciation rate.
Brand new RV or used one
The new RV is beautiful and costly, but after you try to resale them, they lose their significant worth.
The new one also requires a lot of your maintenance and care techniques.
You should purchase a trailer of a famous brand that is considered more reliable than others but still, you find troubles in their functionality from time to time.
Sometimes, these troubles need a lot of your expense; if you have a warranty, the brand can fix the necessary repairs.
The manufacturing process for anything install in them is not so good. With all its manufacturing defects removed and replaced by the owner itself, the trailer is considered more reliable than the new one.
A well-maintained used RV can survive up to 15 years. A new RV of the big rig can cause a lot of repairing costs and have more depreciation value than a small one.
While purchasing a new camper, you are in the hands of dealer inventory. So there are only limited options available for buying a new RV.
For buying a new one, if you are unable to pay full price money at the time of purchasing them, the dealer suggests you pay RV monthly with interest rates. .
Estimated depreciation value
You can see a significant decrease in your RV price year after year of use. Only 15-21% of the price decrease when you drive it off the lot.
You can lose approximately 22-24% amount of your RV’s actual price in the second year. In the third year of your RV use, you can lose about 25-28 % of its true worth.
It is sad to know that you lose all this money of your trailer resell value in just three years.
You will lose around 30% to 33% of your RV value in year four of your camper. If you sold your camper during this period, a person who purchases your trailer could save up to 30% of the money.
The five-year use camper can depreciate approximately 34-39% quickly. If you buy the camper with six-year use, you can save about 40-42% of your price. It is the most suitable discount price for something expensive like an RV that provides all the home facilities.
The six-year use trailer is present in the most desirable state, and all the risks of damages diminish because the company and owner itself fix them accurately.
Methods to increase RV worth
There are different methods by applying them, and you can significantly increase the reselling price of your vehicle.
Preventive strategies and inspection test
You will protect your camper by following all the preventing strategies, such as changing the vehicle’s oil.
The trailer things that stop working and can excessively cause damages to your camper’s electrical system need to replace immediately.
The changing of fluids not only increases the worth of your trailer but also increases its safety. The wheel and axle must be check regularly.
It would be better to inspect your RV for gaps and holes that can build moisture inside it. Moisture is the enemy of your camper and can destroy the trailer’s structural integrity.
Change is good
You need to modify your camper interior look with time to increase its worth further. The changing of your camper’s interior paints and wallpaper can change your camper’s look and increase its price.
Cleaning plays a significant role in reselling your camper. If you do all the above mentions techniques, but your trailer is not clean, it will turn off your buyer. Ensure that it is clean and spotless, and the extra things must remove from the inside.
Videos often have a good impact on your buyer than pictures. Try to briefly describe its features in videos and show all your camper’s interior and exterior accessories.
Rent Out RV
It is the most crucial step to fight off all the harm depreciation cause on your trailer and your bank balance. You can earn money from your travel trailer by offering them for rent.
It is not a good strategy to purchase a high price RV that loses its actual worth only after a year or two of use and store them in garages to use them only on vacation.
You can easily travel anywhere and enjoy the comforts of life without the pain of losing half of your vehicle price after some time.