The Depreciation of RVs

Recreational vehicles, or RVs, give their owners the opportunity to vacation in a wide variety of destinations, relatively inexpensively. Traveling in an RV allows you to bring your own living space with you, and sites at campgrounds or RV parks cost far less than comparable hotel rooms. But buying an RV means you'll have to deal with depreciation, which refers to the value an RV loses as it ages.

Reasons

RVs depreciate for many reasons, some of which they share with cars, which also depreciate at a generally high rate. Used RVs represent risk for new buyers, who don't know the service history or whether the prior owner made necessary repairs. The value of an RV also falls when new models with additional features come to market, driving down demand for models that lack those features. RVs consume fuel at a high rate, which can drive down their value when gas prices are high. Finally, mileage and general wear and tear mean that a used RV has a shorter life than a newer model.

Rates

The specific depreciation rate for a given RV depends on factors such as location, condition and features. According to The New York Times, RV Consumer Group Inc.'s J.D. Gallant estimates that a new RV loses between 25 and 40 percent of its value as soon as a buyer takes it home. This extends to an average depreciation of up to 50 percent after five years. After around 10 years, the majority of RVs are unsuitable for normal use and have very little value left.

Minimizing Depreciation

RV owners can take steps to reduce the depreciation of their vehicles. This begins with the choice of which RV to buy. The Times cites the fact that desirable brands hold their value well, although some luxury RVs tend to depreciate more quickly than average, because buyers who can afford the most expensive models prefer new to used. Owners can also perform regular maintenance and keep all service records in an effort to persuade potential buyers to offer more for a used RV. Buying a used RV in the first place eliminates the high, early depreciation.

Other Options

In most cases, depreciation is unavoidable with an RV. Shoppers should consider other options before buying. Leasing an RV is one alternative that allows vacationers to determine whether they enjoy it enough to justify buying one and dealing with depreciation. Traveling by car, train or plane are other options, with costs depending on ticket fares, the cost of fuel and the price of accommodations. Camping with a tent, which requires only enough gear to fill a car, van or SUV, is a simpler and more affordable alternative to RV ownership.