Motorhome prices are still nuts! (2 Viewers)

[Jim]

therefore your MoHo has devalued by 50%

If he sells it for what he bought it for, how can it have been devalued by 50%. It hasn't.

 

[Carpmart]

Your Motorhome will have dropped in value against a new vehicle, so if you paid £50k five years ago a new model will probably be £90-£100k therefore your MoHo has devalued by 50%

He still has the original asset value, so not lost a penny!

Your point is to replace with a brand new one, he’d need to spend 50% more. That’s not relevant to his assets value though.

 

[Googlebot]

Your Motorhome will have dropped in value against a new vehicle, so if you paid £50k five years ago a new model will probably be £90-£100k therefore your MoHo has devalued by 50%

Woah, I felt great before reading your post.

Oh well, I didn’t buy it to worry about the value I suppose.

 

[Coolcats]

If he sells it for what he bought it for, how can it have been devalued by 50%. It hasn't.

Easy one Jim to buy the same MoHo which is say double the price you only have half the money for a new one therefor the asset has devalued. It has also devalued in inflation terms £39000 using inflation is £52,660

We all kid ourselves my favorite track car would sell what I purchased it for in 2006 @£30k that £30k is now worth £49k

So has my asset diminished in value yes it has… But I don’t tell my wife that I tell her I can get my investment back on that asset yet the reality is I’m £19k poorer

I suspect the finance wiz kids on here would agree

 

[Coolcats]

Woah, I felt great before reading your post.

Oh well, I didn’t buy it to worry about the value I suppose.

Absolutly and what a brilliant asset you have and may you enjoy it for a long time

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[oldiesontour]

Bit like £100k in the bank earning 5% and saying I've made £5k this year no You've lost £5k if inflation has been 10%.
Best get it out now and spend it on a new van

 

[CazPaul]

Bit like £100k in the bank earning 5% and saying I've made £5k this year no You've lost £5k if inflation has been 10%.
Best get it out now and spend it on a new van

But then you’ve lost the whole lot?

Leave the £100k in there and wait for the rate to improve, as when rates do improve you’ve nothing to put in.

 

[oldiesontour]

But then you’ve lost the whole lot?

Leave the £100k in there and wait for the rate to improve, as when rates do improve you’ve nothing to put in.

Only if it hasn't diminished in true value as to be realistically valueless by the time rates improve (short medium term looks like rates only heading one way,but on the bright side same with inflation, although still likely to be a net loss especially if you're paying tax on interest)

 

[nicholsong]

So many of the figures quoted in this thread have been for 'Nominal Value' not 'Real Value', including inflation.

This makes much of the discussion meaningless.

Grow up Boys and Girls.

 

[stevewagner]

So many of the figures quoted in this thread have been for 'Nominal Value' not 'Real Value', including inflation.

This makes much of the discussion meaningless.

Grow up Boys and Girls.

Grow up? That’s a bit strong. Are you the oracle where no one else’s opinions matter?

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[Sandancers]

Also, you might want to consider what the insurance Company will give you if the MH is written off. Say you bought a £100,000 MH and just as you got it home it catches fire and is completely destroyed, do you think your friendly insurance co. is going to write a cheque for £100,000 ? I'd suspect not.

 

[MichaelT]

Also, you might want to consider what the insurance Company will give you if the MH is written off. Say you bought a £100,000 MH and just as you got it home it catches fire and is completely destroyed, do you think your friendly insurance co. is going to write a cheque for £100,000 ? I'd suspect not.

Yes especially on a new one as for comfort it's new for old up to 3 years with mileage below 15k I think. For second hand then you would have to prove it's worth by looking at the market and finding same MH for sale for them to pay up.

 

[Coolcats]

Also, you might want to consider what the insurance Company will give you if the MH is written off. Say you bought a £100,000 MH and just as you got it home it catches fire and is completely destroyed, do you think your friendly insurance co. is going to write a cheque for £100,000 ? I'd suspect not.

Gap insurance etc can be a good move for the first few years, I think you can get up to 4 years. When I had the break in I had this on my transporter, the insurance company gave me retail price and the Gap took it back to the price it was when new. If I recall correctly it was about £6k But don’t get it from your dealer go direct.

This is who I used no mess no fuss and the premium for the new transporter was much the same unlike insurance renewal!

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[MichaelT]

Gap insurance etc can be a good move for the first few years, I think you can get up to 4 years. When I had the break in I had this on my transporter, the insurance company gave me retail price and the Gap took it back to the price it was when new. If I recall correctly it was about £6k But don’t get it from your dealer go direct.

This is who I used no mess no fuss and the premium for the new transporter was much the same unlike insurance renewal!

5 Star Low Cost Gap Insurance | car2cover.co.uk

Protect your write off losses and debts with high-quality Gap Insurance at a fraction of dealer prices. New and used cars and vans covered, providing cover is purchased within 180 days of delivery from your motor dealer. 5 Star cover and A rated insurer.

www.car2cover.co.uk

Not now

 

[EuroTrotters]

I've had mine 10 years and it's now 24 years old, gone up 25% in my ownership

8 years and doubled. Ours is the same age.

But I got it 1/2 price

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[SpeedyDux]

Our 2013 van is coming up to 5 years of being owned by us.

Out of interest, I put a search in to see how much they were now and managed to find an identical model for mileage and age.

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I originally expected to lose about 3k a year in depreciation, which was acceptable based on the fact we use it so much and love having it.

So, how much have we actually lost?

The answer is nothing as it’s the same price as when we bought it.

That’s nuts!

I know Covid didn’t help, but how can a vehicle depreciate so little? The prices must drop soon surely?

When I bought a 5 year old Westfalia California I expected some depreciation - it's basically a converted VW Caravelle. 10 years later I sold it and got almost what I paid for it. Despite it having 15 years of wear and tear from camping trips, and starting to show body rust so it would soon need welding and paint. New Calis cost north of £80k and that seems daft too.

Soaring new prices must be helping to shore up used prices.

 

[Dickyb]

Thinks are definitely changing as a my local dealers have huge stocks they can’t shift and are offering a piddly 2k off, it’s definitely a buyers market now, I just don’t think the dealers are ready to accept it just yet

 

[MichaelT]

Thinks are definitely changing as a my local dealers have huge stocks they can’t shift and are offering a piddly 2k off, it’s definitely a buyers market now, I just don’t think the dealers are ready to accept it just yet

Are you sure, our new van arrived in UK mid April and we had to wait till mid may to pick it up to get a slot when dealer had space. Certainly lots of vans on forecourt now but still people buying.

 

[dunnah01]

We've saved over £100k on house rent since buying out £40k motorhome so not bothered about what the technical value is

 

[Barchetta47]

Thinks are definitely changing as a my local dealers have huge stocks they can’t shift and are offering a piddly 2k off, it’s definitely a buyers market now, I just don’t think the dealers are ready to accept it just yet

The total number of motorhomes for sale on Autotrader is now over 12k. That’s a 25% increase in 3 months. I understand the typical average over previous years was more like 8k. There are also lots of discounts being openly offered on adverts which have not been about for the last few years. The next few months are usually when lots of sales are made so it will be interesting how it shakes out.

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[Jim]

Easy one Jim to buy the same MoHo which is say double the price

No, you are adding another transaction, why not include the next sale and the one after that before you calculate your devaluation

Simply If you buy for 50 and three years later can sell for 50. There has been no devaluation. What other things cost is irrelevant, how do you know what his plans are after a sale?

 

[Coolcats]

No, you are adding another transaction, why not include the next sale and the one after that before you calculate your devaluation

Simply If you buy for 50 and three years later can sell for 50. There has been no devaluation. What other things cost is irrelevant, how do you know what his plans are after a sale?

Not sure it works like that £50k now is worth less in three years time, it’s still £50k with that I agree

 

[Bobby dazzler]

Basically going back to the beginning of this thread motorhomes are too expensive for alot of people now. They have killed the goose that laid the golden egg. I expect to see many dealers fall by the wayside over the next few years.

Motorhomes like cars will become only available to the elite

 

[nicholsong]

Grow up? That’s a bit strong. Are you the oracle where no one else’s opinions matter?

Of course their opinion matters - if they use figures years apart that can be compared in real terms.

 

[IRHP]

What would have been the norm say in 2015 to buy a van for 50k keep it 3 years then trade in for the same new van? How much would it have cost to change?

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[SpeedyDux]

What would have been the norm say in 2015 to buy a van for 50k keep it 3 years then trade in for the same new van? How much would it have cost to change?

Until recently the cost to change would have been around £15k.

Today, a lot more. My guess is that it is north of £40k.

 

[The Wino]

I think the truth is that the value of any asset is what you can sell it for. The past few years have been very strange due to shortages of new vans and a big increase in popularity post covid. The next few years could continue the same it could be a more normal market or there could be a surprisingly big drop in value. The market will dictate.

 

[Aly1]

I would have changed my van a couple of years ago but couldn’t due to covid. I’m not prepared to pay the prices they are asking for a new van so I will just keep hold of the van I have.
Thats one less second hand van for sale.

 

[oldiesontour]

Just a thought but with property prices where they are is older people downsizing and being left with large cash pots & also middle aged people who have about finished the mortgage & then inherited property ,going to sustain the market for new(er) MH's that will inturn sustain the older vehicle market ?

 

[SpeedyDux]

Just a thought but with property prices where they are is older people downsizing and being left with large cash pots & also middle aged people who have about finished the mortgage & then inherited property ,going to sustain the market for new(er) MH's that will inturn sustain the older vehicle market ?

I downsized. Effectively buying a smaller house in a better area so there was no large cash pot left over.

The bottleneck for downsizing seems to be lack of bungalows. They fetch silly high prices because developers stopped building new bungalows. Meanwhile, the demand for older 4 and 5 bedroom family houses with big gardens is strong. Prices are still going up. It's a safer asset class from an investment perspective. If or when interest rates are lowered, house price inflation will surely go up. At the same time the alternative "equity release" will become more attractive as an option. Maybe equity release could fuel MH sales.

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