Do Touring Caravans Hold Their Value?

If you’re looking into purchasing a caravan, you’re undoubtedly wondering whether touring caravans hold their value. After all, you might find out caravanning isn’t for you and decide to sell up in the space of a year! The only official supplier of guide prices is Glass Guide and those guide prices are only available for trade-only. So I did some research to work out whether caravans hold their value and how much they depreciate over the years.

A brand new caravan loses 20% of its value as soon as its purchased. Thereafter, on average, caravans lose approximately 10% of their value per year.

As part of researching this blog post, I got some insight from several UK-based caravan dealers to find out a lot more about how caravans depreciate and why. I’m going to explain everything I learnt in this blog post.

How Much Do Touring Caravans Depreciate?

As part of researching this blog post, I spoke to staff at several UK-based caravan dealers including Marquis Leisure and Beechwood Leisure. They all told me that caravans lose a sizeable chunk of their value immediately. 20%, to be precise.

The reason for this instant drop in value is the VAT that you pay when initially purchasing the ‘van. You never get this money back. You may also find that the caravan loses even more value in the first year, particularly if the caravan’s part of a line that the manufacturer adds to every year.

Beyond that, caravans depreciate at a rate of roughly 10% per year. As with cars, however, depreciation depends on many factors such as:

  • The manufacturer
  • The popularity of the model
  • The layout
  • Extras included
  • The condition of the tourer

So if you were to purchase the Bailey Unicorn Black Cadiz at £26,499 — the recommended price for the tourer — you’d lose £5,299.80 instantly. Thereafter, the value of the caravan would decrease by 10% annually.

Caravan AgeValue
Brand New£27,000
1 Year Old£21,600
2 Year Old£19,440
3 Year Old£17,496
4 Year Old£15,746.40
5 Year Old£14,171.76

The table above contains some average figures to give you an idea of how much your caravan would depreciate over the course of 5 years. The depreciation is quite rapid, although 10% per year — after the first initial 20% loss — is just an average. Some caravans depreciate slower, whereas some will depreciate faster. It’s very similar to the way cars — or anything really — depreciates; a lot of factors affect the rate of depreciation.

Some things that affect caravan depreciation include:

  • Condition: This seems rather obvious, but the condition of your caravan will affect the depreciation rate. If your caravan’s in excellent condition, it will depreciate slower than a counterpart with a few bumps and scrapes. Something as simple as a slight scrape can rapidly decrease the value of your caravan. That being said, if you maintain a caravan’s initially pristine condition, it will lose its value at a slower rate.
  • Layout: Some layouts are more coveted than others. So if your caravan has a rare layout that people are looking for, it will depreciate at a slower rate (provided you keep it in excellent condition). For example, triple fixed bunks with a rear dinette on a single axle is a relatively rare layout that suits a lot of families. That’s why caravans with this layout depreciate at a slower rate — because there’s decent demand for the layout. Furthermore, caravans with proper shower cubicles rather than wet rooms are more desirable, so these ‘vans will depreciate at a slower rate.
  • Model production: If production of a certain type or model of caravan ends, it can slow the depreciation of the available models if demand’s high. This isn’t always the case, but it isn’t necessarily unusual either. For example, some older pop-top Eriba Touring models are now rising in value because they’re no longer manufactured in the same way and the particular models are now coveted.

After roughly 10 years, the rate of depreciation typically slows. I studied a lot of data as part of writing this blog post and I discovered that the rate of depreciation slows after a certain point. Generally, it seems the rate of depreciation will slow after 10 years.

After 10 years, the condition of your caravan has a greater impact on its value. For example, some older Bailey Rangers are worth substantially more than newer equivalents simply because of condition. This doesn’t apply to just Bailey, but all manufacturers. I saw similar with Buccaneer, Coachman, Lunar, and Swift caravans. Once a caravan reaches a certain age, condition becomes a more important consideration than age.

The rapid of rate of depreciation — particularly in the first two years of a caravan’s life — is one reason that I always encourage people to purchase a second-hand caravan. If I get friends asking me whether or not they should purchase a brand new caravan, I’d always advise they purchase a second-hand caravan — even if they purchase one that’s only 2 or 3 years old.

The video I’ve linked to above takes you through the pros and cons of purchasing a second hand caravan. I’ve never bought a caravan brand new, and I’d recommend no one to do so. Unless, of course, you like shiny things and can afford to take a big hit in the first few years. However, if you do intend to purchase a caravan second hand it’s important to be aware of the caveats and things to keep an eye out for. The video above definitely helps by covering all the pros and cons.

If you come to selling your caravan, remember that you will make more selling your caravan privately than you will to a dealer. A dealer has many factors to consider, such as margins and administration time. Depending on the age of your caravan, expect to get at least £1,000 – £2,000 more selling your caravan privately than you would selling it to a dealer.

Thank you for reading! I hope you’ve found this blog post useful. Here are some other blog posts I’ve written that you might find useful:

  • How Long Does A Touring Caravan Last? In this blog post, I look at the average lifespan of a touring caravan. I also look at the factors that affect the length of time that a caravan lasts.
  • Does A Caravan Have To Be Insured? I look at whether a touring caravan has to be insured. I also speak to Caravan Guard to discuss the reasons that you should insure your caravan.
  • How Much Is Touring Caravan Insurance Roughly? One of the additional costs associated with purchasing and running a touring caravan is insurance. I researched the cost of insurance for a range of caravans in this blog post, getting plenty of quotes and working out the average cost.

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