Dan Cartwright has over 12 years of experience in the caravan and motorhome industry. He is a judge for a number of prestigious leisure vehicle awards and regularly heads off in his motorhome with his family. Every week, Dan shares his insights with the community. Here’s what he has to say this week.
I’ve noticed there’s a general perception about motorhomes of people thinking they don’t devalue, but that’s not true. They certainly don’t depreciate as much as cars on a percentage basis, however many readers might be shocked by the value they can realise from their motorhome.
This article is important if you’re considering buying a new or second-hand motorhome and are tempted to extend the amount you’re willing to pay based on residual value, or if you’re a motorhome owner considering liquidating the asset.
While it’s true they maintain their value well, you need to look at where most motorhomes are purchased and why. Being a significantly large purchase and with so many makes, ranges, models, layouts and configurations available on the market, most customers want to go to a dealership and have a look around for a trusted buying experience.
However, the popularity of dealerships means that selling your motorhome privately can be challenging. There’s a smaller market for people willing to spend £30,000 to £50,000 on sites like eBay and Facebook Marketplace. As such, the value of your motorhome is likely to be based on what a dealership will pay for it.
But here’s where a lot of people go wrong. They look at the price of their motorhome in a dealership and think that’s exactly what it’s worth, but this isn’t the case. Let’s take a look at the example below.
On Facebook Marketplace, I came across this 2017 Bailey Approach Advance 665. It has a great description, one owner from new and low mileage, coming in at the price of £39,000.
There’s a range of dealers with the same model and it’s roughly £8,000 more. But why? It’s because the dealership has to conduct a lot of work to sell your motorhome. Some of the factors causing the price to inflate are:
- Inspecting the motorhome
- Making any necessary repairs
- Washing the motorhome
- Promotion and marketing
- Cost of sales
- Paying dealership staff
One more point that’s worth noting is the cost of servicing the loan to buy your motorhome while it’s sitting on the dealership forecourt. Let’s say they buy your motorhome for £50,000 and they have it for six months and the loan comes with five per cent interest. This means the dealership will incur £2,500. On top of all of these things, they still have to make a profit. So, when you take your motorhome to a dealership, don’t expect to get a forecourt price for it.
When assessing the value of your motorhome on the second-hand market, always look at what you could buy it for on the private market first. This will give you a good indication of what a dealership might pay for it, although they will probably offer slightly less.
This is in no way meant to seem discouraging. If you’re thinking of buying a motorhome – it’s a fantastic idea. They unlock touring holidays that are unlike any other. But, take your time and do the research. It’s vital to understand how much depreciation you’re likely to experience and avoid overspending on the purchase.
Image credit: Kampus Production / Pexels
