Does RV decrease with age? An in-depth guide to recreational vehicle depreciation

According to Outdoorsy, a new recreational vehicle (RV) can lose up to 30% of its value in the first three years of ownership. Like any vehicle, an RV's value decreases with age due to several factors, including mileage, maintenance, and overall condition. This guide explores the typical depreciation curve, the key variables at play, and strategies for protecting your investment.

Quick Summary

Like all vehicles, an RV’s value depreciates over time, with the steepest decline occurring in the first five years. However, the exact rate of depreciation is influenced by the RV's type, maintenance history, storage, and market conditions, offering opportunities for owners to slow the decline and protect resale value.

Key Points

• Initial Depreciation is Steep: RVs experience their most significant drop in value, often 15–30%, in the first year alone.

• Rate Slows After 5 Years: The pace of depreciation lessens considerably after the fifth year, with the RV's condition becoming the primary value driver.

• RV Type Matters: Larger and more complex Class A motorhomes depreciate faster than smaller, simpler travel trailers or Class C models.

• Maintenance Mitigates Loss: Diligent maintenance, detailed service records, and covered storage can dramatically reduce the rate of value decline.

• Condition is Key: A clean, well-functioning RV with a solid service history will command a much higher resale price than a neglected one, regardless of age.

• Market Demand Plays a Role: Popular, reputable brands with strong market demand tend to retain their value better over time.

Understanding the typical RV depreciation curve

Recreational vehicles follow a predictable depreciation pattern, with the most significant value loss happening right after purchase. The depreciation curve is steepest during the first year, after which the rate of decline slows down considerably before stabilizing.

• Year 1: Expect a substantial drop in value, with some sources reporting a 15–30% loss as soon as the RV leaves the dealership lot.
• Years 2–5: Depreciation continues at a slower pace, averaging an additional 5–10% annually, depending on usage and maintenance.
• After Year 5: The rate of value loss flattens out. The resale price becomes more dependent on the RV's physical condition rather than its age alone.
• Beyond Year 10: While depreciation continues, it slows significantly. Very old RVs, particularly well-maintained and classic models, hold a more stable value.

Factors that influence how much an RV decreases with age

While age is the most significant factor in depreciation, other elements can either accelerate or mitigate this value loss. Understanding these variables is crucial for both buyers and sellers.

Condition and Maintenance

The overall condition of an RV—both inside and out—plays a massive role in its resale value. A vehicle with cosmetic or mechanical issues will depreciate much faster than a well-maintained one. Potential buyers will scrutinize the following:

• Exterior: Faded decals, sun damage, and dents can decrease value. Regular cleaning and waxing can protect the finish.
• Interior: Worn upholstery, outdated features, or signs of neglect can hurt resale price. Strategic updates and consistent cleaning are important.
• Mechanicals: Regular engine service, functioning appliances, and a detailed maintenance history reassure buyers and justify a higher price.
• Water Damage: Roof or seal leaks are one of the most detrimental issues for an RV's value. Proactive inspection and resealing are essential.

RV Type

The class and size of an RV significantly impact its depreciation rate. Larger, more luxurious motorhomes often have steeper depreciation than smaller, more utilitarian towables.

• Class A Motorhomes: These typically have the highest initial cost and steepest depreciation curve. They lose value more quickly in the first few years compared to other RV types.
• Class C Motorhomes: Considered a middle ground, they balance comfort and value. While they depreciate steadily, they often hold their value slightly better than Class A models.
• Class B Motorhomes: These are built on a durable van chassis and can retain their value well, often better than larger motorhomes.
• Travel Trailers and Fifth Wheels: Generally depreciate more slowly than motorized RVs, particularly well-regarded brands like Airstream. Their lack of an engine or drivetrain reduces potential mechanical issues over time.

Usage and Mileage

High mileage is a direct indicator of increased wear and tear, which accelerates depreciation. An RV used frequently and extensively will lose value more quickly than one that is lightly used and well-stored. Buyers look for a balance, as a completely unused RV might have issues from disuse, while an overused one shows its age.

Storage Conditions

How and where an RV is stored directly affects its long-term condition and value. Proper storage protects the vehicle from weather damage, UV deterioration, and potential pest infestations. Outdoor storage without a cover exposes the RV to the elements, leading to faster wear and tear.

Comparison of RV Depreciation by Class

Factor	Class A Motorhomes	Class B Motorhomes	Class C Motorhomes	Travel Trailers & Fifth Wheels
Initial Depreciation	Steepest in the first few years.	Slower than Class A and C.	Substantial, but less than Class A.	Most gradual among all types.
Depreciation after 5 years	Typically around 35–50%.	Holds value better, retaining more of its initial price.	Slower depreciation than Class A.	Strong value retention, especially for quality brands.
Maintenance Impact	High due to complex systems; extensive records needed.	Lower maintenance concerns than larger motorhomes.	Important for preserving value; mechanical issues can be costly.	Focus on seals and interior; no engine/drivetrain costs.
Mileage Impact	High mileage significantly decreases value due to engine wear.	Lower mileage is a strong selling point for vans.	Affects resale value, but less intensely than Class A.	Not applicable to mileage, but wear and tear still factor in.

Strategies to minimize RV depreciation

Owning an RV is an investment in your lifestyle, and while some value loss is inevitable, you can take steps to minimize the financial impact.

1. Prioritize Regular Maintenance: This is the most effective way to slow depreciation. Keep meticulous records of all services, inspections, and repairs.
2. Ensure Proper Storage: When not in use, store your RV in a covered or enclosed facility to protect it from the sun, rain, and snow.
3. Address Damage Promptly: Small issues like a minor roof leak or a peeling decal should be fixed immediately before they escalate into costly problems that severely impact value.
4. Buy a Used RV: Since the steepest depreciation occurs in the first few years, buying a quality used RV means you avoid the biggest financial hit.
5. Choose High-Resale Brands: Some manufacturers, such as Airstream, Winnebago, and Jayco, have a reputation for better build quality and retain their value longer.

Conclusion

Yes, an RV will decrease with age, following a depreciation curve that is steepest in the first five years and then flattens out. The value loss is not uniform across all types of RVs, with larger, more expensive motorhomes depreciating more rapidly than smaller, more durable travel trailers. However, proactive owners who invest in regular maintenance, proper storage, and timely repairs can significantly slow the depreciation rate. By understanding the factors at play and choosing a high-quality brand, you can protect your investment and enjoy the RV lifestyle for years to come while maximizing your resale value.

Frequently Asked Questions

How much does an RV depreciate in its first year?

New RVs typically lose between 15% and 30% of their value in the first year of ownership, with the steepest decline happening as soon as the vehicle leaves the dealership lot.

Which type of RV holds its value best?

Generally, smaller, simpler units like travel trailers and Class B motorhomes tend to hold their value better than larger, more expensive Class A motorhomes. Reputable brands like Airstream are also known for better value retention.

Does mileage affect RV depreciation?

Yes, mileage is a significant factor, especially for motorized RVs. Higher mileage indicates more wear and tear, leading to a faster rate of depreciation.

Is it better to buy a new or used RV regarding depreciation?

For minimizing depreciation costs, it is generally better to buy a used RV. By doing so, you avoid the most significant depreciation hit that occurs in the first few years of a new vehicle's life.

How can I calculate my RV's depreciation?

A rough calculation can be done by taking the difference between the initial purchase price and the current market value, then dividing it by the number of years you've owned it. For a more accurate figure, use online tools or consult valuation guides.

What role does maintenance play in an RV's value?

Maintenance is crucial for preserving value. Regular servicing, timely repairs, and detailed service records reassure potential buyers that the RV has been well cared for, which can significantly slow depreciation.

How does market demand affect RV resale value?

Market demand can influence depreciation rates. Popular and well-regarded brands are more likely to retain their value due to higher consumer interest, while economic conditions and seasonal trends can also cause fluctuations.