Guide To RV Depreciation: How Time & Mileage Impacts Value

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Last Updated on August 24, 2024 by Paul Clayton

Guide To RV Depreciation: How Time & Mileage Impacts Value

Depreciation is an important topic to understand not only for accountants but also for regular people as well. If you understand how objects lose value, you can make effective day-to-day financial decisions.

RV depreciation is no exception.

RVs can cost a lot. While most models probably cost between $25 and $75 thousand, some surpass $150 thousand. There are RVs out there that cost as much as half a million dollars! Now, there are Class A RV MotorCoaches that cost over 2 million.

Key Takeaways

1. 1. Understanding Depreciation: Depreciation refers to the reduction in value of an asset over time due to wear and tear. It’s essential for making informed financial decisions, especially when purchasing high-value items like RVs.
   2. RV Depreciation Trends: RVs depreciate significantly once driven off the lot, typically losing about 30% of their value instantly. Over time, the depreciation rate tends to stabilize.
   3. Evaluation Methods: Different depreciation calculation methods include straight-line, declining balance, and units of production depreciation. This guide used JD Power RV Value Guide and Nada Guides data to evaluate RV depreciation.
   4. Impact of Time and Mileage: Time significantly impacts RV depreciation. For example, Jayco Greyhawk Class C motorhomes lose over 50% of their value within 7 years. Mileage also affects depreciation, with high mileage reducing the RV’s value, but this impact diminishes as the RV ages.
   5. Class Comparisons: Different RV classes (Class A motorhomes, Class C motorhomes, and camping trailers) show similar depreciation trends over time, although initial depreciation rates can vary slightly by model and type.
   6. New vs. Used RVs: While new RVs offer the benefit of modern features and warranties, used RVs can be more cost-effective due to the initial steep depreciation of new models. Well-maintained used RVs might also prove more reliable, having already had initial issues resolved by previous owners.

But why spend so much money if you can benefit from depreciation?

This guide will help you understand how RVs tend to depreciate so you can make well-weighed financial decisions. I have bought 6 RVs in my lifetime, and none have been new (but like new).

What is depreciation?

If you are completely unfamiliar with depreciation, let us explain it at a very basic level.

There are several methods for calculating depreciation:

1. Straight-line Depreciation: The simplest and most commonly used method, where the asset’s cost is spread evenly over its useful life.
2. Declining Balance Depreciation: This method involves depreciating an asset at a higher rate in its early years of life. It can be useful for assets that lose value quickly.
3. Units of Production Depreciation: This method ties depreciation to the asset’s actual usage or production. For example, a truck might be depreciated based on the number of miles driven.

Depreciation is the reduction of the value of an asset (e.g., transportation means, industrial machinery, etc.) caused by wear and tear. Also, accounting uses depreciation to reallocate the cost of assets over their service period.

The cost of an asset is mainly reallocated into the net cost of the products or services produced with that asset. Depreciation is also used in accounting for tax reduction purposes.

As we mentioned initially, accounting isn’t our primary concern today. Not every RV owner is an accountant, so some people may have difficulty following this material. Instead, we’ll try to teach you to use RV depreciation to your advantage. However, you should understand what depreciation is and why it exists, even if it is at the most basic level.

How we evaluated depreciation

Our approach

• JD Power RV Value Guide has served as the source for the RV price data. They have a rich catalog of RVs from decades back, so they had all the data we needed.
• We’ve picked an RV series to evaluate depreciation and gathered data on its list price and average retail price for each production year. We’ve included each of its production years with every model.
• We chose RV models that have been around for a long enough time to evaluate their depreciation. Some model lines had a too-short lifespan or were too new to do any calculations.
• We chose the same or similar models (floorplans) within an RV series to represent price changes as objectively as possible.
• We calculated how much the RV has depreciated over the years for each model to its original list price.
• In addition, to demonstrate how prices change across various RV types, we’ve picked three models from varying categories: one Class C motorhome, one Class A motorhome, and one camping trailer.
• For our evaluations, we used the suggested list price and average retail values provided by Nada Guides.
• No extra options were added to the RV models. The prices shown are for baseline RVs. Any options will increase an RV’s value.
• We didn’t take mileage into account because some models could account for it while others couldn’t. We’ll examine the effect of mileage separately a bit later.

What should RV value depreciation be kept in mind?

You need to know several things to understand our findings better. Those are:

• Once you drive an RV out of the lot, it will lose about 30% of its value.
• Depreciation of an RV stops once its value reaches its estimated scrap value.
• Rarer classic RVs may eventually stop depreciating and begin appreciating. We didn’t observe such a change among the chosen models, but we know that it can happen.
• Economic situation and fuel prices can significantly affect changes in depreciated values.

RV depreciation

Jayco Greyhawk Series Class C motorhomes

The first RV we chose for today’s study is the Jayco Greyhawk Series Class C motorhome. This series has been around for about 16 years, which allowed us to get plenty of data to evaluate depreciation.

Fortunately, the model line in this series has been pretty consistent for today’s material, allowing us to compare their value changes more or less directly.

As mentioned, we used the suggested list price and average retail price to calculate the depreciation. We used that year’s list price and average retail for each model year.

Thanks to this, we’ll see how the older models have depreciated. We may also discover a couple of interesting patterns.

Year	Year #	Model	Suggested List Price	Average Retail	Average Total Depreciation
2018	0	M-31 DS	$118,155	$80,750	31.7%
2017	1	M-31 DS	$114,625	$75,100	34.5%
2016	2	M-31 FK	$111,449	$68,550	38.5%
2015	3	M-31 FK	$109,750	$63,050	42.6%
2014	4	M-31 SS	$94,383	$54,350	42.4%
2013	5	M-31 SS	$93,471	$50,550	45.9%
2012	6	M-31 SS	$90,742	$46,550	48.7%
2011	7	M-31 SS	$88,679	$42,350	52.2%
2010	8	M-31 SS	$88,558	$37,700	57.4%
2009	9	M-31 SS	$84,200	$33,900	59.7%
2008	10	M-31 SS	$83,986	$32,200	61.7%
2007	11	M-31 SS	$78,308	$27,800	64.5%
2006	12	M-31 SS	$76,493	$28,800	62.3%
2005	13	M-31 SS	$73,464	$23,800	67.6%
2004	14	M-31 SS	$70,714	$20,450	71.1%
2003	15	M-31 RB	$65,457	$10,200	84.4%
2002	16	M-31 RB	$64,322	$8,550	86.7%

 

The very first thing that catches the eye in our chart is the total depreciation of the 2018 M-31 DS model. It’s been on the market for a year, and its depreciation has already skyrocketed to 31.7%. This is primarily due to the immediate 30% value loss after the purchase.

After that first spike, the depreciation rate is more or less steady.

What should also be noted is that the value of Greyhawk Series Class C motorhomes halved at about 6 6-7-year years. Given the steady depreciation rate, we can assume that the newer models will cost half their original price 6-7 years after production.

The oldest Greyhawk Class C motorhome line was released in 2002. As you can see, it has depreciated by 86.7% since January 2019. This should be pretty close to the scrap value of the 2002 M-31 RB motorhome.

Winnebago Adventurer Series Class A motorhomes

We chose Winnebago Adventurer Series Class A motorhomes as the second model because we wanted to see whether there are any differences in depreciation between the more expensive and the cheaper RV types.

Year	Year #	Model	Suggested List Price	Average Retail	Average Annual Depreciation
2018	0	No comparable model
2017	1	M-35P-Ford	$204,517	$128,850	37.0%
2016	2	M-35P-Ford	$180,298	$111,150	38.4%
2015	3	M-35P-Ford	$172,158	$102,150	40.7%
2014	4	M-35P-Ford	$164,483	$91,500	44.4%
2013	5	M-35P-Ford	$162,602	$84,050	48.3%
2012	6	M-35P-Ford	$157,620	$77,350	50.9%
2011	7	M-35P-Ford	$152,935	$72,100	52.9%
2010	8	M-35P-Ford	$147,206	$62,550	57.5%
2009	9	M-35A-Ford	$136,502	$56,550	58.6%
2008	10	M-35A-Ford	$147,034	$54,900	62.7%
2007	11	M-35A-Ford	$141,961	$50,000	64.8%
2006	12	M-35A-Ford	$142,344	$42,950	69.8%
2005	13	M-35A-Ford	$132,572	$35,150	73.5%
2004	14	M-35U-Ford	$121,197	$27,600	77.2%
2003	15	M-35U-Ford	$114,387	$24,750	78.4%
2002	16	M-35U-Ford	$110,013	$20,600	81.3%
2001	17	M-35U-Ford	$104,488	$18,550	82.2%
2000	18	M-35U-Ford	$99,305	$16,400	83.5%
1999	19	M-35C-Ford	$90,502	$15,150	83.3%

As this chart shows, there aren’t any significant differences between the Adventurer and Greyhawk motorhome patterns. There was one little difference in data: because there was no 2018 Adventurer line, we don’t have price data on them.

However, the depreciation of the 2017 Adventurer and Greyhawk are pretty close, so one could say that they have been similar in 2018 as well.

In addition, the value of the Adventurer RVs halved at about the 5-7-year mark, which is very close to what we observed with Greyhawk motorhomes.

What’s also quite interesting is that the depreciation for the 1999 – 2002 models stays below mid-80%. That’s probably because those models are either close or are at their scrap value.

Forest River Classic Series camping trailers

To conclude our analysis, we’ve picked up an inexpensive RV, a Forest River Classic Series camping trailer. This is a pretty long-lived model line, so it should be interesting to see how the older models have depreciated over the years.

Year	Year #	Model	Suggested List Price	Average Retail	Average Annual Depreciation
2018	0	M-823D	$15,975	$12,150	23.9%
2017	1	No comparable model
2016	2	M-823D	$15,619	$10,600	32.1%
2015	3	M-823D	$15,019	$9,750	35.1%
2014	4	M-823D	$13,727	$9,000	34.4%
2013	5	M-823D	$15,008	$8,250	45.0%
2012	6	M-823D	$13,347	$7,600	43.1%
2011	7	M-823D	$13,037	$6,900	47.1%
2010	8	M-823D	$12,554	$6,300	49.8%
2009	9	M-823D	$12,258	$5,400	55.9%
2008	10	M-823D	$11,862	$4,850	59.1%
2007	11	M-823D	$11,845	$4,300	63.7%
2006	12	M-823D	$11,327	$3,850	66.0%
2005	13	M-823D	$9,798	$3,400	65.3%
2004	14	M-823D	$9,465	$3,400	64.1%
2003	15	M-823D	$8,532	$1,975	76.9%
2002	16	M-823	$8,708	$1,825	79.0%
2001	17	M-823	$7,789	$1,650	78.8%
2000	18	M-823	$7,593	$1,650	78.3%
1999	19	M-823	$6,975	$1,650	76.3%
1998	20	M-823 MAC	$6,716	$1,650	75.4%
1997	21	M-823 MAC	$6,632	$1,650	75.1%

 

What immediately catches the eye is the 23.9% depreciation of the 2018 M-823D camping trailer. This camping trailer lost over 20% of its value after leaving the manufacturer.

That’s slightly lower than the 30% you will see in most cases. And if you continue to look through the chart, you could notice the long-term effects of this lower initial devaluation. For example, the models of this particular RV line have been reaching half their original price in the 8th or 9th years due to the lower initial depreciation.

However, the actual depreciation rate didn’t change much compared to the other two RVs. We’ll cover this aspect later when we compare the data of all the RVs we examined.

Another interesting thing with this model line is that we can more or less see which models hit their scrap value this year. 2004 and 2005 M-823D models most likely hit their scrap value because their average retail prices are $3,400.

The models from 1997 to 2001 also hit their scrap value, which sits lower at $1,650.

Because these models have hit their scrap value, their depreciation has stopped, as could be evident from their total depreciation. The 1997-2001 models’ depreciation ranges between 75.1 and 78.8%, depending on the original list price, while the 2004 and 2005 models lost 64.1-65.3% of their value.

RV depreciation across different classes

Now that we have examined each of the 3 RV model lines, let’s compare their results and see whether the depreciation rates are the same for all of them.

Year	Year #	Jayco Greyhawk C Class motorhome	Winnebago Adventurer A Class motorhome	Forest River Classic Series camping trailer
2018	0	31.7%	–	23.9%
2017	1	34.5%	37.0%	–
2016	2	38.5%	38.4%	32.1%
2015	3	42.6%	40.7%	35.1%
2014	4	42.4%	44.4%	34.4%
2013	5	45.9%	48.3%	45.0%
2012	6	48.7%	50.9%	43.1%
2011	7	52.2%	52.9%	47.1%
2010	8	57.4%	57.5%	49.8%
2009	9	59.7%	58.6%	55.9%
2008	10	61.7%	62.7%	59.1%
2007	11	64.5%	64.8%	63.7%
2006	12	62.3%	69.8%	66.0%
2005	13	67.6%	73.5%	65.3%
2004	14	71.1%	77.2%	64.1%
2003	15	84.4%	78.4%	76.9%
2002	16	86.7%	81.3%	79.0%
2001	17	–	82.2%	78.8%
2000	18	–	83.5%	78.3%
1999	19	–	83.3%	76.3%
1998	20	–	–	75.4%
1997	21	–	–	75.1%

Roughly speaking, the depreciation rates for all three RV classes have been similar over the years. Despite this, the total depreciation for Forest River Classic camping trailers has been lower. This was most likely caused by the about 20% lower devaluation of the vehicle after purchase.

So, can we say that RV depreciation differs across different RV types and classes? No, we can’t. There probably won’t be any differences across RV types on a larger scale. However, in some individual cases, the depreciation rate of an RV may be slower or quicker.

This may be impacted by plenty of factors. For example, high-demand RVs will likely depreciate slower, and vice versa.

All in all, you can’t rely on this data directly to make a decision. There are too many variables for you to predict and account for. What you can do, though, with all this data is understand how RV depreciation works and plan your purchase accordingly.

Impact of Mileage on RV Depreciation

Mileage is also a pretty important factor in RV depreciation. To illustrate how it impacts an RV’s value, we’ve picked the Jayco Greyhawk C Class motorhome line again. We’ve shrunk the list a bit this time, but there is still more than enough data to make some conclusions.

We gathered data on this RV’s value at 0 and 100,000 miles, and here’s what we found.

Year	Model	Average retail difference at 0 mileage	Average retail difference at 100,000 mileage
2016	M-31 FK	$2,056 (+3%)	-$10,282 (-15%)
2014	M-31 SS	$3,804 (+7%)	-$5,978 (-11%)
2012	M-31 SS	$6,052 (+13%)	-$3,258 (-7%)
2010	M-31 SS	$7,163 (+19%)	-$1,131 (-3%)
2008	M-31 SS	$7,800 (+25%)	$312 (+1%)
2006	M-31 SS	$8,352 (+29%)	$1,440 (+5%)
2004	M-31 SS	$6,748 (+33%)	$1,840 (+9%)

 

The picture is quite interesting with the mileage. If we didn’t have any of these numbers, we’d think that the more mileage an RV has, the more depreciation it has. That still is the case, but not how we’d expect it to be.

Judging by the above chart, zero mileage wouldn’t noticeably affect a brand-new RV model, while 100,000 miles would probably be devastating for its value. However, as the vehicle gets older, the negative impact of mileage on value decreases.

At about the 10-year mark, as seen from the 2008 M-31SS motorhome, 100,000 mileage even increases the value of a vehicle! At the same time, a 0 mileage adds more and more value to an RV as it ages.

We’ve also checked the data on the other two RVs, and the numbers have been very similar to them. So, mileage’s impact on RV depreciation isn’t linked to this model.

In the end, mileage plays a role in an RV’s value. Although initially negative, the impact of mileage eventually turns around and starts actually adding value to a vehicle.

Which new vs. used RV should you go for?

Now that we’ve examined all that data and concluded, it is time to answer this question: Should you get a new or used RV?

The answer you will most often hear is that you should get a used RV. We agree with this opinion.

It doesn’t make financial sense to buy a brand-new RV. It doesn’t. Once you take the RV out of the dealership, it loses about 30% of its value. You could get a slightly used, perfect-condition RV at a 30% discount.

Now, this doesn’t mean that buying a brand-new RV is a bad decision. Some people aren’t ready to sacrifice the feel of cleanness and newness for a big discount in price. You may also want to get a new RV for any other reason. As long as you have the money, getting a new RV can have its benefits.

However, the significant price difference between new and used RVs isn’t the only reason you want a used model.

Old can be more reliable than new

As counterintuitive as this may sound, old RVs can be more reliable than new RVs. The reason for this is the care of the original owner.

RVs tend to develop significant issues within the first few years of ownership, and those issues require some solutions. RV owners will have to consider removing the weak links in their vehicles. If the original owner owned an RV for several years, then you can be pretty sure that the majority, if not all, of its factory issues have been resolved.

If you were to buy a new RV, you would need to be ready for problems. Problems won’t happen necessarily, but should they arise, you must spend money to eliminate them.

On the other side of the coin.

Whether an older RV is more reliable than a new one depends on several factors. Let’s consider some reasons why an older RV might be more reliable:

1. Quality of Construction: Some older RVs were built with higher quality materials and craftsmanship than newer models.
2. Simplicity: Older RVs might have simpler systems and designs. This can make them more reliable because less can go wrong, and repairs can be easier and cheaper.
3. Proven Performance: An older RV that has been well maintained and has a record of reliable performance may remain reliable.
4. Maintenance: A well-maintained older RV is often more reliable than a neglected new one. Maintenance is crucial to the longevity and reliability of any vehicle.

On the other hand, there are reasons why a new RV might be more reliable:

1. Warranty: New RVs often come with warranties that can cover repairs in the early years of ownership.
2. Modern Technology: Newer models are equipped with modern technology, which can improve safety, efficiency, and comfort. However, this can be a double-edged sword as more complex systems can lead to more potential issues.
3. Lack of Wear and Tear: A new RV hasn’t been subjected to the wear and tear that an older RV might have experienced. This might make it more reliable in the short term, although it’s not a guarantee of long-term reliability.

Factors like the quality of an RV’s construction, how well it’s been maintained, and how it’s been used will determine its reliability, whether new or old. A thorough inspection by a knowledgeable professional can provide insight into an RV’s condition and potential reliability.

An overused RV is bad… And so is an unused RV

You could have noticed that we’ve made our observations based on average retail prices. In reality, prices could go either way, both higher and lower. Getting an RV for a very cheap price may be very tempting.

But we wouldn’t advise you to go for the cheapest option. Usually, if an old RV is much cheaper than average, it has been heavily used. In other words, it probably won’t be in very good condition.

You probably know that you shouldn’t go for an RV that has been badly overused. You may be able to get it for very little money, but what may come next can’t be predicted. You may need to do a major repair or whatnot in a few days.

On the other hand, very few used or unused RVs should also be avoided. The thing is that engines – especially diesel engines – live the longest when operating regularly. So, if an RV has been sitting unused for a long time, it will likely have serious issues.

Both overuse and underuse can have negative effects on an RV. Let’s dive in a little deeper at each situation:

Overuse of an RV:

1. Wear and Tear: Excessive use can cause faster wear and tear on the RV’s components, from the engine to the appliances and living area features. This might require frequent repairs and maintenance, leading to higher costs.
2. Increased Depreciation: High mileage or usage can depreciate the RV’s value faster than average, which could be a disadvantage if you plan to sell or trade it in the future.
3. Less Lifespan: Every vehicle has a certain lifespan, and overuse can exhaust the RV’s usable life more quickly.

Underuse or non-use of an RV:

1. Deterioration: Vehicles are designed to be used. When they sit idle for extended periods, problems can arise. Tires can develop flat spots, batteries can lose their charge, seals and gaskets can dry out and start to leak, and fuel can degrade and cause problems with the engine.
2. Pests: An unused RV can become a home for pests like rodents or insects, which can cause damage to the vehicle’s interior and wiring.
3. Maintenance Costs: Even if you’re not using your RV, you’ll still need to perform certain maintenance tasks to keep it in good condition. This might include running the engine periodically, cleaning and sealing the exterior, and more.
4. Depreciation: An unused RV will still depreciate over time, even if it’s not being used. This means that you’re losing value on your investment without getting any benefit from it.

Regular use and proper maintenance are the keys to keeping an RV in good condition, whether new or used. This means using it often enough to keep everything in working order but not so much that you’re causing excessive wear and tear. And, of course, regular inspections and maintenance are critical, no matter how often you’re using the RV.

You may also like Average RV Prices.

In addition, if an RV has been parked unused for a long time, it is likely to haven’t seen maintenance like a simple oil change. And you don’t want to deal with that.

When it comes to buying an RV, both new and used options come with their own sets of advantages and disadvantages. The decision will largely depend on your circumstances, including your budget, how often you plan to use the RV, and your comfort with carrying out or paying for maintenance and repairs.

Buying a New RV:

Pros:

• It has the latest technology and amenities, offering a modern living experience.
• There’s a manufacturer’s warranty covering certain defects or repairs.
• You have the assurance of no previous wear and tear or misuse.

Cons:

• New RVs are expensive and depreciate rapidly in the first few years. Some estimates suggest that a new RV can lose approximately 20% of its value in the first year.
• Initial defects are common in new RVs, often called “teething problems,” which might require additional time and effort to fix.

Buying a Used RV:

Pros:

• It’s cheaper to buy, and the depreciation rate is slower after the initial few years.
• If well-maintained, a used RV can offer a great balance between cost and quality.

Cons:

• It might require more frequent maintenance or repairs due to wear and tear.
• There could be hidden issues not apparent during the buying process, potentially leading to unexpected costs.

I have included, for your convenience, a quick education via videos by buyers and sellers. I highly recommend reviewing as many as you need to make a wise decision when purchasing an RV- any RV!

This video has been included to clarify the topic. Credit goes to Wingman Wisdom

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Wrap Up

Depreciation:

Several factors, including usage, mileage, maintenance, and overall care, can influence RV depreciation. As mentioned, new RVs tend to depreciate quickly in the first few years, with some estimates suggesting a drop of around 20% in the first year and around 6% per year for the following five years.

Having gone through the most significant depreciation in the first few years, used RVs typically see a slower depreciation rate. However, the specific rate can vary based on the make and model of the RV, its condition, how well it’s been maintained, and market demand.

In conclusion, both new and used RVs have pros and cons, and the best choice depends on your needs and circumstances. Regardless of the choice, proper care and maintenance can help retain the value and ensure the RV’s reliability over time.

The best options can be found in the middle. A good RV has been used enough to stay intact, but not so much that it is now in a bad condition.

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