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Motorhome Owners Hit by Depreciation
A motorhome is a thing to love, use and enjoy, and not many people think of it as an investment or a particularly sophisticated financial transaction. When selling on a motorhome, though, the figures suddenly take on a new importance and how much you sell for often determines how much you’re able to spend on the next model.
Over the last few years, though, we have seen demand for second hand motorhomes slightly slipping away. To counteract this, a lot of motorhome owners have been finding themselves accepting very low offers for motorhomes that, five or ten years ago, might have fetched considerably more money.
This all comes out in the wash when owners start looking at the depreciation they’ve experienced on their motorhomes. Depreciation is usually considered as costs incurred, that includes things like motorhome insurance, less the price the motorhome is sold for. This really represents the real cost of a motorhome to an individual.
In itself this isn’t usually too much of a problem and over a few years the costs quite quickly even out. However, for those motorhome owners who are on finance arrangements or who have borrowed money to fund their purchase, it can be quite a problem.
Often motorhome owners sell up to pay off the remaining part of their loan or borrow in the expectation that they’ll be able to sell at a certain price. A lower selling value ultimately leaves motorhome owners short and, even with a difference of a thousand pounds or so, this can be a considerable interest sum to repay.
Hopefully we’re starting to see demand pick up once again in the motorhome market, but there are certainly going to be isolated cases over the next few years where motorhome owners are really hit hard with the costs of depreciation
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