Are Motorhomes a Solid Investment? Vehicle Prices Retaining Value

For most owners, motorhomes deliver value through the freedom and adventure they provide. They offer year after year of flexible and heavily discounted getaways with beloved family, friends and pets – plus enough memories to last a lifetime. But as with any luxury purchase, it’s still worth researching if and how your motorhome could pay off in the long term.

Depreciation is one key concern for new owners. New vehicles tend to drop in value the minute you get behind the wheel – but at the moment motorhomes are so sought after that they’re retaining their worth. And with the option to rent out your vehicle to loved ones or strangers when you’re not using it, you could offset ongoing costs such as motorhome insurance, maintenance and tax too.

We’ve taken a closer look at both those factors below to help you keep track of emerging trends in the market and develop even greater confidence in your investment.

Used motorhomes retaining and even gaining value

Following similar patterns seen in the used car market, the prices of used motorhomes boomed through 2021. According to a market inflation report, the average model increased in price by over £4,000, or 13.86%, compared to figures recorded in 2020.

While that percentage is below that seen for used cars, this means used motorhomes gained value at a greater rate than homes, based on data from Halifax over the same period. And this was in the same year that the government’s extended stamp duty holiday caused a significant surge in property sales.

An increase in value can bring a heightened risk of theft, however, so it’s worth reading our

A new wave of first-time buyers drives prices up

One key reason behind the motorhome price boom is the sizeable growth in public desire for domestic holidays. Searches for ‘staycation’ increased by over 500% in 2020 – and through multiple summers of international travel restrictions, more people have taken the opportunity to explore what the UK has to offer.

Motorhomes provide the perfect answer for these new travel desires. With no need to scramble for accommodation bookings or pay over the odds during peak season, owners have the option to get away from it all whenever they feel like it.

And with contained facilities and mostly coastal or countryside destinations to choose from, motorhome holidays are also well suited to more cautious or health-conscious travellers. All these advantages no doubt contributed to a record 101,606 visitors attending the Caravan, Camping & Motorhome Show at the National Exhibition Centre (NEC) in February 2022.

Production delays mean demand is outstripping supply

A key factor coupled with the increase in new buyers is the continued global constraint on motorhome production. The worldwide semiconductor microchip shortage, which has affected everything from smartphones to games consoles and new cars, is also limiting the supply of new motorhomes.

Many of the electrical functions of a motorhome are controlled by these chips. With manufacturers struggling to source them in the numbers they need and stock dwindling, new motorhome buyers are facing prolonged delays. This pent-up demand has driven buyers to scour the used market instead, pushing prices up as a result.

With delays likely to affect new motorhome deliveries for some time and waiting lists growing ever longer, the resale value of used models should remain high for the foreseeable future.

Maximising your investment through motorhome hire  

While you may be considering taking advantage of your motorhome’s increased resale value, increased material costs have also driven up the price of new motorhomes. But motorhome hire offers another way to make the most of your investment and the general rise in demand, while still retaining the lifestyle you love.

You can rent out your vehicle to friends and family or people you don’t know. The former typically offers more security over your motorhome’s condition, while the latter might allow you to set a higher rate to maximise your earnings.

It’s easy to get started too – especially if you sign up with Camplify, the UK’s fastest-growing campervan, motorhome and caravan sharing community. You’ll get an exclusive 0% commission rate for the first 12 months if you’re a Comfort Insurance customer.

Get covered and earn a passive income through your motorhome

If you’re thinking about renting out your vehicle to take advantage of these market trends, we’re here to help. For complete peace of mind, our Discover temporary motorhome insurance gives you comprehensive cover while your vehicle is on hire.

Get in touch with us today to learn about how we can support your venture. Give us a call on 0208 984 0666 or email info@comfort-insurance.co.uk and we’ll be happy to help.