Is an RV a good investment?

Is an RV a good investment? Let me go ahead and start by saying, an RV should definitely not be looked at as an investment. You are going to be investing in it (a lot most likely), but the return on investment will be, making memories. They say that driving your new RV off the lot will lower its value by 20%, but is buying an RV a waste of money?

Is an RV a smart investment?

No, but you should not think of your RV as an Investment

If anything you should think of it as investing in memories, family bonding, and your overall lifestyle. A true investment should be purchasing something in hopes of it one day being worth more than you paid for it or just close to it. An RV is not that type of purchase.

Many even go as far as calling them money pits. I have not found that in my experience, but I also have not gotten to the level of some RV enthusiasts.

The larger and more expensive RVs have the potential for the most depreciation and loss on investment. I have seen a few vintage RVs that hold good value, but most likely someone else lost money earlier when they were purchased new.

Savings Tip: The only way to really offset this depreciation and get any kind of return on investment would be by renting it out when not in use through a third-party rental site like Outdoorsy or RVshare. Scary! who really wants someone else tearing up their RV?

If you are interested in where RV prices will be going in 2023 we did a little research for you to find out.

How much does an RV depreciate when you drive it off the lot?

20% Exiting Dealership

According to J.D. Power, depreciation rates vary based on several factors from RV type to the specific brand. In general, however, you can expect to lose 20% the moment you drive your RV off the dealer’s lot. With the cost of an RV ranging anywhere from $5,000 to $500,000, you can see how much this hit to your wallet might hurt.

How much does an RV depreciate yearly?

8% Yearly

There are some factors that affect depreciation of course but on average depreciation currently works out at something like 8% per year, except for the first year. The depreciation on a brand-new motorhome is more like 10 -15% depending on the make and model.

Savings Tip: Joining an RV membership club can save you on camping fees, RV accessories, and even gas. Check out Good Sam Club for RV discounts and roadside assistance.

What type of RV depreciates the most?

Fifth wheels

Your RV value over time will largely depend on what type of RV you have. Class A motorhomes, Class C motorhomes, and fifth wheels have the highest depreciation rates.

Class C’s tend to hold their value best of all motorhome-type RVs.

What is the average lifespan of an RV?

around 20 years

The average lifespan of an RV is around 20 years or 200,000 miles, whichever comes first. But the answer isn’t quite that simple. That number can vary depending on the class of your motorhome, how well you take care of it, and a few other factors.

How can you slow the depreciation rate on your RV?

The best way to manage RV depreciation is to keep your vehicle clean and well-maintained.

The type of RV materials used can slow depreciation. Molded fiberglass is an excellent option, along with treated aluminum alloy, which the manufacturer uses to build Airstream vehicles. These materials are hardy and hold up well against major wear and tear. They’re less likely to face denting, water damage, or other forms of exterior deterioration that you may find with RVs built from different materials.

So, why do RVs depreciate?

Mileage

An RV is meant to be driven, so seeing low mileage on a used RV does not always make it a good thing. A vehicle that has spent long periods sitting stationary, may have some underlying faulty conditions.

Maintenance

Regular maintenance is most likely the number one thing when it comes to your RV holding value. This involves being meticulous with the preventative maintenance schedule of your motorhome, as well as keeping detailed service records. If nothing else, the latter proves that you took care of your motorhome.

There’s nothing like waving a properly filled-out service book under the nose of a prospective buyer to prove the point that the motorhome has been loved.

Age

Some items go up in resale value as they get older, an RV is not one of those things.

Water Damage/Delamination

The best way to prevent this is to protect your RV from extreme weather. keeping your motorhome under cover when not being used does protect it from extreme weather conditions and the UV effect of the sun.

This is not going to be possible all the time, especially if you are a full-time user.

Once you notice any water penetration or delamination, you need to jump on it quickly. It will only get worse if it is not addressed immediately.

Water damage takes us back to regular maintenance, checking your roof and seals often, and making repairs when needed.

Delamination issues will most likely need to be repaired by a professional.

Normal wear and tear

Let’s face it, RVs take a lot of abuse even when you take special care and perform regular maintenance. Just driving down the road can shake loose nuts and bolts that are meant to hold everything together.

So, driving down the road, kids jumping, doors slamming, and just normal day-to-day activities take a toll. You can slow depreciation, but you can never really stop it from happening.

22 things to think about when buying an RV

Additional Costs to determine – Is an RV a good investment?

Don’t forget to factor in the cost of insurance, vehicle registration, regular maintenance, plus storage if you’re not able to park the RV at your residence. Other costs that vary but should be budgeted for are campground fees, fuel, unexpected repairs, and gear, which includes anything from kitchen supplies to a high-quality sewer hose. 10 Essentials for your first time out!

How can I find out what my RV is worth?

Kelly Blue Book can’t help you with RVs

NADA RV Values

For RV values you need to reach for a NADA guide or website. NADA stands for the National Automobile Dealers Association. Luckily for you, they set values for cars and trucks, boats, motorcycles, classic cars, and lastly RVs.