Have you ever wanted to know how much does caravan (travel trailer) depreciate and how much it costs?

I have spent time reviewing caravan classifieds to determine the rate of depreciation after first-year purchase and subsequent years cost. I have provided examples of the popular caravan (travel trailers) below

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**How much does Caravan (Travel Trailers) Depreciate?**

**Caravan (travel trailers) depreciate quickly. In the first two years of its life, a new caravan (travel trailer) depreciates by 40%. For the remainder of its life, it gradually reduces by 12% to 4%. ** **After 10-12 years will depreciate to less than half of what you paid for it.**

If you were to sell it after two years you would certainly incur a huge loss. The first 4-5 years is where you will experience the most loss.

The best time to purchase a new Caravan (travel trailer) is after the first two years of life when 40% of value has been diminished.

The figures below are based on an asset life expectancy of 14 years.

So if you had purchased a caravan (travel trailer) for $25k it would lose 23% in its first year or $5,750. The second-year a further 17% or $3,273.

After the first four years, the rate reduces moves into single digits.

Years 12 and Year 11, caravans (travel trailer) are worth 1/2 the value of the original purchase price.

If you obtained a loan it’s likely to be higher than what you could sell it for.

Meaning if you were to sell there would be a shortfall from the sale and need to fork money out of your pocket or continue to carry the loan until paid off.

Years Remaining | Decline % |

Year 14 | 0.23 |

Year 13 | 0.17 |

Year 12 | 0.12 |

Year 11 | 0.11 |

Year 10 | 0.09 |

Year 9 | 0.08 |

Year 8 | 0.07 |

Year 7 | 0.07 |

Year 6 | 0.05 |

Year 5 | 0.04 |

Year 4 | 0.04 |

Year 3 | 0.04 |

Year 2 | 0.04 |

Year 1 | 0.04 |

Once caravan (travel trailer) has passed its life of 14 years it retains some value, It’s likely to reduce further by low-end single digits (1-4%)

**Caravan (Travel trailer) Depreciation example**

### Jayco Flight SLX depreciation example

So if you were to purchase the Jayco Flight SLX for the initial price of $25,000, the amount of depreciation in the first year would be $5,750, you’d only be able to sell it for around a Revised Price of $19,250.

*Year 12 – With 3 years the model has reduced further, you’d only be able to sell it for around $14,060. In three years, this caravan (travel trailer) has lost 42% of its value. If you took out a long financing term on the camper, it may now be worth less than what you owe on it.*

*Year 10 – If you bought this model five years ago, you’d now be able to sell it for around $11,387. This caravan (travel trailer)* *has lost 63% of its original value. Although it has lost over half of its value at this point, it did depreciate slower through years 4 and 5 than it did through the first 3 years.*

*Year 5 – If you bought this model ten years ago, you’d be able to sell it for around $8,265. This caravan (travel trailer) has now lost about 68% of its value. *

Years Remaining | Price | Revised Price | Decline % | Decline $ |

Year 14 | $ 25,000 | 19,250 | 0.23 | $ 5,750 |

Year 13 | $ 19,250 | 15,978 | 0.17 | $ 3,273 |

Year 12 | $ 15,978 | 14,060 | 0.12 | $ 1,917 |

Year 11 | $ 14,060 | 12,514 | 0.11 | $ 1,547 |

Year 10 | $ 12,514 | 11,387 | 0.09 | $ 1,126 |

Year 9 | $ 11,387 | 10,476 | 0.08 | $ 911 |

Year 8 | $ 10,476 | 9,743 | 0.07 | $ 733 |

Year 7 | $ 9,743 | 9,061 | 0.07 | $ 682 |

Year 6 | $ 9,061 | 8,608 | 0.05 | $ 453 |

Year 5 | $ 8,608 | 8,264 | 0.04 | $ 344 |

Year 4 | $ 8,264 | 7,933 | 0.04 | $ 331 |

Year 3 | $ 7,933 | 7,616 | 0.04 | $ 317 |

Year 2 | $ 7,616 | 7,311 | 0.04 | $ 305 |

Year 1 | $ 7,311 | 7,019 | 0.04 | $ 292 |

### Jayco Eagle Depreciation Example

So if you were to purchase the Jayco Eagle for the initial price of $53,000, the amount of depreciation in the first year would be $12,190, you’d only be able to sell it for around a Revised Price of $40,810.

*Year 12 – With 3 years the model has reduced further, you’d only be able to sell it for around $29,808. In three years, this caravan (travel trailer) has lost 52 % of its value. If you took out a long financing term on the camper, it may now be worth less than what you owe on it.*

*Year 10 – If you bought this model five years ago, you’d now be able to sell it for around $24,141. This caravan (travel trailer)* *has lost 72% of its original value. Although it has lost over half of its value at this point, it did depreciate slower through years 4 and 5 than it did through the first 3 years.*

*Year 5 – If you bought this model ten years ago, you’d be able to sell it for around $17,519. This caravan (travel trailer) has now lost about 68% of its value. *

Years Remaining | Price | Revised Price | Decline % | Decline $ |

Year 14 | $ 53,000 | 40,810 | 0.23 | $ 12,190 |

Year 13 | $ 40,810 | 33,872 | 0.17 | $ 6,938 |

Year 12 | $ 33,872 | 29,808 | 0.12 | $ 4,065 |

Year 11 | $ 29,808 | 26,529 | 0.11 | $ 3,279 |

Year 10 | $ 26,529 | 24,141 | 0.09 | $ 2,388 |

Year 9 | $ 24,141 | 22,210 | 0.08 | $ 1,931 |

Year 8 | $ 22,210 | 20,655 | 0.07 | $ 1,555 |

Year 7 | $ 20,655 | 19,209 | 0.07 | $ 1,446 |

Year 6 | $ 19,209 | 18,249 | 0.05 | $ 960 |

Year 5 | $ 18,249 | 17,519 | 0.04 | $ 730 |

Year 4 | $ 17,519 | 16,818 | 0.04 | $ 701 |

Year 3 | $ 16,818 | 16,145 | 0.04 | $ 673 |

Year 2 | $ 16,145 | 15,500 | 0.04 | $ 646 |

Year 1 | $ 15,500 | 14,880 | 0.04 | $ 620 |

### Airstream RV Classic Depreciation Example

So if you were to purchase the Airstream RV Classic for the initial price of $153,000, the amount of depreciation in the first year would be $35,190, you’d only be able to sell it for around a Revised Price of $117,810.

*Year 12 – With 3 years the model has reduced further, you’d only be able to sell it for around $86,048. In three years, this caravan (travel trailer) has lost 42% of its value. If you took out a long financing term on the camper, it may now be worth less than what you owe on it.**Year 10 – If you bought this model five years ago, you’d now be able to sell it for around $69,691. This caravan (travel trailer)**has lost 63% of its original value. Although it has lost over half of its value at this point, it did depreciate slower through years 4 and 5 than it did through the first 3 years.**Year 5 – If you bought this model ten years ago, you’d be able to sell it for around $50,573. This caravan (travel trailer) has now lost about 68% of its value.*

Years Remaining | Price | Revised Price | Decline % | Decline $ |

Year 14 | $ 153,000 | 117,810 | 0.23 | $ 35,190 |

Year 13 | $ 117,810 | 97,782 | 0.17 | $ 20,028 |

Year 12 | $ 97,782 | 86,048 | 0.12 | $ 11,734 |

Year 11 | $ 86,048 | 76,583 | 0.11 | $ 9,465 |

Year 10 | $ 76,583 | 69,691 | 0.09 | $ 6,892 |

Year 9 | $ 69,691 | 64,115 | 0.08 | $ 5,575 |

Year 8 | $ 64,115 | 59,627 | 0.07 | $ 4,488 |

Year 7 | $ 59,627 | 55,453 | 0.07 | $ 4,174 |

Year 6 | $ 55,453 | 52,681 | 0.05 | $ 2,773 |

Year 5 | $ 52,681 | 50,573 | 0.04 | $ 2,107 |

Year 4 | $ 50,573 | 48,551 | 0.04 | $ 2,023 |

Year 3 | $ 48,551 | 46,609 | 0.04 | $ 1,942 |

Year 2 | $ 46,609 | 44,744 | 0.04 | $ 1,864 |

Year 1 | $ 44,744 | 42,954 | 0.04 | $ 1,790 |

**Maintenance for Resale**

Keeping your caravan (travel trailer) in perfect condition won’t stop it from depreciation. It will, however, make it easier to sell than if it hasn’t been looked after.

Tips to keep your caravan (travel trailer) in decent condition for resale

- Undercover storage

- Frequent Servicing

- Records of regular maintenance scheduled

- Repairs are made when required

**How long does a Caravan (Travel Trailer) last?**

The general consensus on the life span of a caravan is 14 years, and that’s for one that has been looked after, including regular service and maintenance.

**Final Thoughts**

Buying a caravan (travel trailer) is an important financial decision. Buying a caravan (travel trailer) after it has had the largest drop in depreciation makes financial sense.

**More Information**

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