Wednesday, April 17, 2024

The Depreciation Dilemma: How RVs Lose Value Over Time





Regardless of perfectly kept preventative maintenance and lots of tender loving care, all RVs will lose value over time. Sure, there are things you can do to slow it somewhat down, but rigs will depreciate in value no matter what you do. Understanding what affects your RV’s value over time can help you to keep it longer, but more importantly, it will help you to know when it’s time to sell it.

If you own one that’s lost most of its value, sell your junk RV in New Mexico to a specialized RV dealer. They’ll tow it away and leave you with cash in hand. When your rig has outlived its usefulness, selling to a junk RV dealer is an almost effortless task.

What Factors Affect the Depreciation of an RV?

Several factors will affect the depreciation of all RVs. Some can be somewhat controlled, while others will be completely out of your hands. Obviously, you purchased a new or used RV actually to use it. Unfortunately, by using it, it’ll depreciate faster. But what’s the fun in owning an RV that simply sits idle and is never used? Here’s a look at some of the most common factors that affect the depreciation and resale value of an RV.

Age

The very second a brand-new RV is driven off the dealership’s lot, it begins to lose value. In its first year of use, it could lose up to 20% of its purchase prices. In five years, that number jumps to 30 to 35%. After ten years, a rig has depreciated approximately 60%. After a decade, campgrounds that follow the 10-year rule may deny reservations simply due to the rig’s age.

Mileage

A rig’s mileage plays a big role in its depreciation and potential resale value. Even rigs with impeccable service records that have been well maintained will have buyers weary once their odometer hits six digits. High mileage can affect many aspects of an RV, its suspension being one of them. A well-used RV with a lot of miles typically will require more frequent repairs, affecting its resale value.

Condition

Although looks aren’t everything, they do play a part in an RV’s value and depreciation. Used rigs are expected to show signs of use, but anything more than the occasional dig and scrap could significantly lower an RV’s value. Damaged appliances, water damage, and needed repairs will all take their toll on what an old RV owner can expect to get if they’ve decided to sell.

Brand

Popularity does play a role in RV depreciation. Brands like Winnebago and Airstream tend to depreciate at far slower rates than others simply due to their reputations for being long-lasting and their eye-catching appeal. However, even incredibly popular brands that require costly necessary repairs or severe cosmetic damage may be priced with other less popular brands.

Trailer Type

The type of trailer also plays a part in how quickly it’ll depreciate. Massive Class A trailers tend to depreciate at a slower rate than smaller and less expensive Class B and C. Although all three have depreciated in the same ballpark after five years, a Class A trailer still maintained a few extra percentage points than the others.

Are There Ways To Slow Down an RV’s Depreciation?

There are a couple of ways that RV owners can slow down their rig’s depreciation. While most owners have good intentions when they purchase a new or even a used RV, many begin to fall short after just a year or two of use. Unless they’re using it as their primary residence, many RV owners simply don’t put the effort into them. The two best things that can be done to slow down depreciation are:

  • Routine maintenance – Staying on top of regular RV maintenance can not only extend its lifespan but can also slow down its rate of depreciation. Keeping accurate records of all maintenance and repairs will prove to be important when it comes time to sell a used rig.
  • Storage – An RV that has been stored in a garage or even a carport will depreciate slower than those left outside and exposed to the elements. Rain, snow, ice, and even the sun can quickly deteriorate an RV’s paper-thin roofs. Roof damage can let in moisture that’ll lead to mold, and water damage can cause havoc on interiors.

The RV Depreciation Dilemma Explained

Almost everything depreciates in value as the years go by, and RVs are not immune from this reality. Factors such as age, mileage, and condition play a big role in a rig’s worth. Although there are a few things RV owners can do to slow the rate down, eventually, they’ll hit the category of being a junk RV.

Owners of less-than-desirable RVs can quickly sell them to a specialized RV dealer who doesn’t care about condition, miles, or age. They’ll come to you and haul it away while leaving you with more cash than you expected. They’re the easiest and most profitable way to unload a rig that’s seen better days.

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The post The Depreciation Dilemma: How RVs Lose Value Over Time appeared first on Paddock Magazine.

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