Do RVs Hold Their Value? A Look at Depreciation

RVs are a significant investment, making their long-term value retention important for owners. Like other assets, RVs depreciate due to age, wear, and market conditions, impacting their resale price and ownership cost.

The General Depreciation Landscape for RVs

RVs, like automobiles, generally decline in market value over time. A substantial portion of this depreciation occurs immediately after purchase, with new RVs losing 15% to 30% of their value in the first year alone.

After this initial period, depreciation becomes more gradual but continues for several years. Many RVs lose about half their original price within five to six years. Beyond five years, the annual percentage of value loss slows considerably, meaning older RVs depreciate less in dollar amount than newer ones.

Factors Affecting an RV’s Resale Value

An RV’s resale value is influenced by its characteristics and market forces. Its physical condition, inside and out, is a primary determinant. A meticulously maintained RV with a clean interior, functional appliances, and sound mechanical system commands a higher price than one showing neglect or damage like dents, scratches, or water damage.

A detailed maintenance history significantly impacts an RV’s value. Well-documented service records assure buyers of the vehicle’s care and operational reliability. This transparency suggests proper attention to critical components, from the engine and transmission to plumbing and electrical systems. Conversely, a lack of records raises concerns about hidden issues, deterring buyers and lowering valuation.

For motorized RVs, mileage plays a role in determining resale value, much like in cars. Lower mileage generally correlates with higher value, as it suggests less wear and tear on the engine and other mechanical components. However, extremely low mileage on an older unit might indicate prolonged periods of inactivity, which can also lead to maintenance issues. For towable RVs, usage patterns and overall wear from travel are more relevant than specific mileage figures.

Age is another significant factor, as depreciation is tied to time. Newer RVs retain more value, with the steepest decline in initial years. However, very old, well-preserved models, especially from reputable brands, can sometimes enter a market segment where classic status or unique features contribute to value retention, creating a depreciation plateau if diligently cared for.

Features and upgrades can also influence an RV’s resale value, though their impact varies. Desirable additions like solar power systems, upgraded appliances, modern furnishings, or advanced safety features can enhance appeal and potentially increase the selling price. However, highly personalized or niche modifications might not resonate with a broad buyer base and may not yield a full return on investment. The key is to consider upgrades that offer wide appeal and practical functionality.

Proper storage is important for preserving an RV’s value by mitigating wear and tear. Storing it under cover or indoors protects it from environmental damage like sun exposure, harsh weather, and moisture. This helps maintain the exterior, prevent water damage, and prolong internal components’ life, positively contributing to its condition and resale appeal.

Broader market demand and economic conditions inherently affect RV resale values. During periods of strong economic growth, consumer interest in leisure vehicles may increase, leading to higher demand and potentially better resale prices. Conversely, economic downturns can reduce demand for luxury items like RVs, resulting in lower market prices. Trends in consumer preferences, such as the popularity of certain layouts or features, also play a role in how quickly an RV sells and for what price.

Depreciation Characteristics Across RV Types

Different RV types show varying depreciation patterns based on initial cost, construction, usage, and market segments. Class A motorhomes, the largest and most expensive, depreciate quickly early on, losing about 30% in three years and over 50% in five. This rapid decline is partly due to their high initial price and complex mechanical systems, which incur significant maintenance costs as they age.

Class B camper vans, built on van chassis, often depreciate slower than larger motorhomes. They can lose 30-33% of their value in three years and about 50% after five, holding value better than Class A units. Their compact size, maneuverability, and fuel efficiency contribute to sustained demand. Their versatility for travel and daily use also appeals to a broader buyer range.

Class C motorhomes, built on a cutaway chassis with an RV body, generally depreciate slower than Class A motorhomes. They hold value comparatively well among motorized RVs, experiencing about 38% depreciation after five years, with the rate leveling off. Their balance of living space, ease of driving, and lower initial cost makes them popular, supporting their resale value.

Travel trailers, non-motorized and towed, often show a distinct depreciation curve. They hold value better than motorized RVs, retaining about 60% after five years. Their depreciation is less affected by mileage and more by overall condition and age, as they lack an engine and drivetrain. Lower initial cost and simpler mechanics contribute to their slower value decline.

Fifth-wheel trailers, larger towable RVs pulled by a pickup with a special hitch, depreciate differently from motorhomes. While some sources suggest rapid depreciation similar to Class A and B, others indicate they hold value well, especially premium brands. They might see a 45% reduction after five years. Their spacious interiors and towing stability appeal to those seeking extensive travel setups, influencing market demand.