Before purchasing something, you probably consider how the purchase will retain value over the long run. Depreciation is a factor that should be considered when purchasing recreational vehicles. Due to the increased demand for RVs, the value of RVs in general doesn’t depreciate as rapidly as cars.
Why does RV depreciation occur?
Regardless of whether a vehicle is a car, a truck, a boat, or even a recreational vehicle, its value will depreciate over time. Consequently, newer options enter the market each year, resulting in a decrease in demand for older models. Wear and tear may also contribute to the depreciation of a vehicle’s value, even if that wear and tear is normal. Maintaining your RV correctly and keeping a record of its maintenance will help you preserve some of its value.
Calculate RV depreciation:
An RV’s value depreciates at a different rate depending on its use and the type of RV rate for each RV class varies, but generally, the RV’s value drops between 17 and 20% during the first few years after purchase. As time passes, the deprecation becomes more pronounced. It is therefore imperative that you sell your RV as soon as possible, regardless of whether you are looking to trade in for a new RV or simply looking to sell it.
RV Depreciation: How to Avoid It?
RV depreciation can be avoided by maintaining your RV and keeping all scheduled maintenance appointments. If you no longer wish to own your RV, you can easily sell it. The quick sale of your RV allows you to get rid of it without incurring any further depreciation.
The first five years after RV purchase are the most valuable for all classes of RVs, and the value remains considerable even after that period. Many towables and motorhomes maintain impressive values despite depreciating over time, thanks to today’s in-demand RV market. Regardless of whether you own the RV outright or have a loan on it, RV dealers who buy used RVs are ready to help.