A touring caravan allows you to explore places without having to book accommodation. If you’re buying a touring caravan, do they hold their value? How long do touring caravans hold their value, and what factors influence the same?
Touring caravans hold their value more than cars and have a slower depreciation rate. A caravan loses 20% of its purchase price in the first year. It depreciates between 15% and 20% each year after that.
The rest of this article will focus on how much and how fast touring caravans depreciate. I’ll also explain how to ensure that your caravan holds its value and how to determine a caravan’s value.
How Much & How Fast Do Touring Caravans Depreciate?
As you know, cars depreciate the minute you drive them out of the showroom. Do touring caravans depreciate at the same rate?
Touring caravans depreciate by around 20% in the first year. After this, the depreciation rate slows down to 15% until the vehicle is ten years old. Past its tenth year, a touring caravan depreciates between 5% and 10% annually.
This may seem like a lot, but caravans depreciate slower than cars. A car’s value typically depreciates between 20% and 30% in the first year. After that, it will depreciate between 15% and 35% each year — depending on the make, model, and condition.
Below is a helpful table demonstrating how much and how fast caravans depreciate. These numbers are based on a brand new Swift Sprite 6 Berth Caravan with a single axle. Buying this new caravan will set you back by approximately £22,890.
|Caravan Age||Depreciation Value|
How To Ensure a Caravan Holds Its Value
In the previous section, I explained how much and how fast touring caravans depreciate. So, is there anything you can do to ensure that your caravan retains its value?
You can ensure a caravan holds its value by keeping it in a dry and shady place and maintaining it regularly. Not smoking in your caravan, ensuring that the caravan’s paperwork is updated, and not smoking inside the caravan also help.
I’ll discuss these points in more detail below:
Store It in a Dry and Shady Place
Most people only use their caravans for a few weeks each year and store them at home when they’re not in use.
Constant sun, wind, and rain exposure can cause:
- Paint fading
- Paint splintering and chipping
- Upholstery fading
- Rising damp
You can prevent UV damage to your caravan by keeping it in a dry and shady place. If this isn’t possible, a caravan cover works well too.
The Crusader Purely Outdoors CoverPRO Premium Caravan Cover from Amazon.com comes with a free hitch cover and is available in various sizes. It also features 4-ply material to protect your caravan from the elements and help it retain its value for longer.
Perform Regular Maintenance
Caravans don’t need the same level of maintenance as cars since they don’t have engines. Still, you should service your caravan annually or after every 6000 miles (10,000km), whichever comes first.
Caravan services usually include the following:
- Tire and wheel inspection
- Bearing seal replacement and wheel bearing repacking
- Brake check and adjustments
- Oiling and checking of suspension components
- Inspection and/or adjusting the tow hitch
Polishing your caravan every six months with a product containing UV protection can keep the paint from fading and chipping.
Cleaning and dusting your caravan regularly can prevent it from smelling musty and stale. If you only use your caravan for a few weeks each year, open the doors and windows once a month to freshen the air inside.
It’s also worth checking your caravan regularly to ensure there are no cracks or holes where rain or moisture can enter. Moisture in a caravan is challenging to eliminate and leaves behind a distinctive smell.
After a few years, you may notice that your caravan’s upholstery becomes faded or torn, the window catches break, or some of the cupboards have loose hinges. Spending a bit of money repairing the upholstery and making minor repairs can pay off and save you thousands when you decide to sell your caravan.
Avoid Smoking in Your Caravan
It used to be common for used cars and caravans to smell like stale smoke. If your caravan smells like smoke today, it can decrease the value substantially. If you’re a smoker and a caravan owner, consider smoking outside, as this will save you a lot of money when you sell your caravan.
Invest in Useful Features
Installing extras in your caravan can increase its resale value. If you’re undecided about whether to install that TV, tracking device, roof light, or door curtain, try purchasing one if you can afford it. Additional features can help you enjoy your caravan more and increase its resale value when the time comes.
Ensure Your Paperwork Is Up-to-Date
It’s easy to keep your caravan’s paperwork and legal requirements up to date. Unlike cars, caravans don’t need annual MOTs, but they must be roadworthy. Your caravan’s tow hitch, suspension, and tires need to be in good condition.
Keep your caravan’s essential paperwork in a safe place, as this could come in handy when you sell it. This includes:
- Servicing record
- Proof of ownership
- Receipts and warranties for extras you’ve added
It’s not the law in the UK to insure your caravan as most vehicle insurance policies cover you for third-party damage if you’re towing a caravan. However, third-party insurance doesn’t cover you for theft, so it’s a good idea to take out a separate insurance policy.
One upside of your caravan depreciating in value is that your insurance premiums will decrease, making it even more worthwhile.
How To Find Out the Value of a Caravan
Buying a used caravan can save you a lot of money and can be a bargain, but you need to determine the going rate of that model to avoid being scammed. If you want to sell your caravan, it’s also advisable to have an accurate idea of its value. So, how do you find out a caravan’s value?
You can find out a caravan’s value by approaching a caravan dealer or checking an online caravan price-checking website. You could also research the prices that other sellers are advertising for their caravans.
Bear in mind that your caravan’s value can depend on the time of year you conduct your research. Caravans are usually in high demand during the spring and summer when people want to use one on their holidays. This pushes up their prices slightly, and you’ll see them decrease again in the winter.
Here’s a more detailed guide on how to find out the value of a caravan:
Approach a Caravan Dealer
Approaching a caravan dealer for a valuation is the most accurate way to determine your caravan’s value. It’s best to make an appointment with the dealer and tow your caravan to their valuation office so they can evaluate your caravan’s physical condition.
Caravan dealers have a deep understanding of what affects caravan pricing, and they’ll let you know how they arrived at your caravan’s valuation.
Most UK cities and towns have caravan dealers, and if you’re happy with the service you previously received from your caravan dealer, consider approaching them for valuation services as well.
Check an Online Caravan Price-Checking Website
If you’re in a hurry to find out your caravan’s value, you could check an online caravan price-checking website. You’ll be asked to enter your caravan’s make, model, berth size, and age, and the website will calculate its approximate value. These websites aren’t as accurate as approaching a caravan dealer, but they’ll give you a good ballpark figure.
The only downside to using a caravan price-checking website is that they charge a subscription fee. This may be useful if you’re in the market for a used caravan and want to ensure that you’re not being taken for a ride, but it can be a waste of money for a once-off valuation.
Check How Other Sellers Are Pricing Their Caravans
Many caravan owners browse used caravan selling websites to get a general idea of their caravan’s value. If you have a common caravan make and model, this way of checking is easy. However, it’s best to look up at least three listings advertising caravans according to your specifications and then take an average.