Depreciation
Was just wondering if anyone knows if there is a list of how much and what manufacturer's deprecated by would be interesting we seem to lose a 7 thousand every 3 years on Bailey and swift
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I assume you mean depreciated rather than deprecated! However It isnt that simple. If that were the case you would soon end up with a caravan worth nothing. Like cars, each caravan will have a value at a given age and condition and demand. Dealers use a
trade guide and will base any trade-in and forecourt price on that along with watching the market and what competitors are doing. As with cars c/vans will drop in value significantly in the first year or three and then the depreciation curve will gradually flatten
out after that initial fall.0 -
The book is Glasses Guide but it is trade only. Looking at forecourt prices in general there seems to be very little difference in depreciation between makes though. Makes that have gone though like Avondale will lose money a bit faster at first although
even that looks to even out after a few years.0 -
Was just wondering if anyone knows if there is a list of how much and what manufacturer's deprecated by would be interesting we seem to lose a 7 thousand every 3 years on Bailey and swift
That makes for very expensive caravanning.
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Only forty five pounds a week
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So it would make sense to live in it all the year round to get the best value out of it. That's if it doesn't depreciate more through constant usage!
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Was just wondering if anyone knows if there is a list of how much and what manufacturer's deprecated by would be interesting we seem to lose a 7 thousand every 3 years on Bailey and swift
That makes for very expensive caravanning.
On a £20,000 'van the first £4k loss is the moment the cash comes off your debit card with the VAT
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I would imagine the depreciation curve will be very similar to cars. As with cars the vat comes off the moment you leave the forecourt, and as with cars, the longer you run it, the better year on year value it becomes.
Looking at relative values, it looks like the rule of thumb I use with cars will be somewhere near for caravans. i.e 50% of the value every 3 years, so a £20k van will be worth £10k in three years, then 50% of that over the following three years.
Can't see much difference between any of the UK manufacturers
Caravaning aint cheap.
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In 2007 I bought an Eriba 420 new for £14,000. Ten years on a big dealer now sells that model, that year, second hand for £13,000. I'm keeping mine. I can stand a £100 a year hit on my pocket.
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I would imagine the depreciation curve will be very similar to cars. As with cars the vat comes off the moment you leave the forecourt, and as with cars, the longer you run it, the better year on year value it becomes.
Looking at relative values, it looks like the rule of thumb I use with cars will be somewhere near for caravans. i.e 50% of the value every 3 years, so a £20k van will be worth £10k in three years, then 50% of that over the following three years.
Can't see much difference between any of the UK manufacturers
Caravaning aint cheap.
By that formula, a 9 year old £19k van would now only be worth around £2400? I think you need to reconsider that!
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The VAT thing is a fallacy.
The price of anything includes the relevant taxes. The second hand price doesn't somehow 'lose' the tax within its value.
The fact is that a second-hand item is less desirable than a new item and therefore attracts a lower price.
Cars and caravans are particulaly susceptible to this.
Also, the list price includes an element for negotiation. Anyone buying a new car should eaily be able to negotiate a 10% discount.......and 20% if they try a bit. New caravans include at least 10% for negotiation.
So a second hand car or caravan automatically has (or should have) this reduction built in. So they are worth less.
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Forgot to mention........people are often flattered by the trade in price they get for their old unit. But bearing in mind that a good trade-in price means less (or no) discount off the new unit.
Example - new caravan list price is £25,000
Minimum discount should be £2,500
Trade-in caravan is worth about £10,000 but they are offered £12,000 and think they have done really well. Reality is that they have 'lost' about £500 on the deal.
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As a motorhomer I have no idea how to predict depreciation of caravans however I do get the impression that it is considerable. Initial depreciation of cars/motorhomes/caravans is always steep for a variety of reasons but thereafter is not straight line.
if the price of caravans goes up due to being imported or incorporating imported components then good existing vehicles will increase in value or at least depreciate less. Motorhomes typically depreciate significantly less and a retention of 50% of value
over 10 years has been quoted. I have the feeling that it is in the nature of a caravans construction that it is likely to have a relatively short lifespan but perhaps people just like to change to get something bigger/better/smaller/more shiny/with more gadgets
or whatever.0 -
A caravan does not seem to depreciate in value in the same way as a car. For example, my car, which is three years old, has a current list price of half the new price. All the caravans we have had have lost, on average, a thousand pounds a year when we
come to sell them. Both car and caravans depreciate more in their early years but cars much more so, in our experience.0 -
A caravan does not seem to depreciate in value in the same way as a car. For example, my car, which is three years old, has a current list price of half the new price. All the caravans we have had have lost, on average, a thousand pounds a year when we come to sell them. Both car and caravans depreciate more in their early years but cars much more so, in our experience.
Write your comments here...I think you're right. Caravans do depreciate in value every year but not as much as cars. That means you could probably get a better deal from changing your caravan than your car.
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Katieb can you pass the dealer you use to loose only 3 thousand on a three year old caravan is fantastic thanks
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Katieb can you pass the dealer you use to loose only 3 thousand on a three year old caravan is fantastic thanks
Hi Cabbiemick
As I said, both cars and caravans value depreciates more in early years - in part just because they are second hand. Whenever we have part exchanged our vans we always seem to lose the same amount. The dealer agreed that a thousand per year was a good
yardstick but if you changed over after just one year you'd obviously lose a lot more but not as big a percentage as you would on a car. When we change our van I tend to look at the bottom figure rather than what we sold the old one for and what we paid for
the new one as both these figures can be altered by the dealer to suit the customer!0 -
Today we paid the deposit on our next van. Our current van was new in Febuary 2014 and the new van will be collected next April. We went to four dealers, two direct at the NEC and two over the phone since, and all valued our van at app £7000 less than we
paid in 2014. Our first quote was to trade our van plus £8350 and the final quote that we went with was £8300 but included a 100 watt solar panel and Evolution automatic mover.Best, or lowest, fall, in value was our Hobby 495ufe which cost app £9500, we bought it in Germany in Euros, and got £5000 for it seven years later.
If only they did a van with smooth sides because the interiors still have that wow factor.
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We have a 2011 Unicorn Valencia. When at the NEC we were given a trade-in figure of around £10000.
Not Hobby but it was either the the Knaus or the Wienburg (spelling?) but the dealer said for the uk market they would have flat sides.
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Its a shame that Glasses Guide has become the main and only guide stick. I say that because we will soon get to the situation with caravans as already exists with cars, - that it dosent really matter how well you have looked after it, - it what the guide
says that matters.!TF
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Being relatively new to caravaning I cannot substantiate with a long list of caravan sales, but feel the overall depreciation on a caravan is much less than that of a car. We bought a 9 year old Stirling for 30% of its original new price whereas my 3 year
old car, bought new sold for 50%.But when you build in the fun factor caravanning is much better value than any car.
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Tigerfish I think its already come to that the only thing dealers are concerned is damp when they inspected our very well kept Barcelona they just went round with damp meter never looked at the outside
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If you don't mind losing something on depreciation, it might be worth considering a change to one the new 8 ft. wide models. We had a look at them at the show and the interior looked so much more spacious than the 7ft. 6 ins. wide models. I have to admit, I was tempted! There was more space to get past the transverse bed to get to the washroom and the advantage of the bigger washrooms also appealed.
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We had a look at one before we brought our lunar but never liked the big front windows but now lunar gone that way too
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We had a look at one before we brought our lunar but never liked the big front windows but now lunar gone that way too
Write your comments here...Yes but with bigger windows, you get the advantage of more light during the day. This is of particular advantage on a dull day, especially in the winter!
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Re the new Lunars-yes you do loose the lockers across the front however,they dont have large front windows but an additional window in the roof above the three main windows.
For us this was important as we find the large centre window,as in Baileys,very unappealing.
In regard to trade in we were told that any 'extras' on the van-ours has a 100 watt solar panel and Powertouch Evolution mover-would not add nything to the trade in that we would get as the dealer could not,or would not, offer any warranty on these so they
had 'no value'.Two of the four dealers we contacted asked if the van had been serviced as required and one asked if there was any damp
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