How fast a caravan loses value
A typical Australian caravan loses about 10 to 15% of its value in the first year. It loses another 5 to 8% a year in years two to five, then a few percent a year after that. By year ten, many vans sell for about half their new price. Some do better and some do worse.
These are typical figures. Your own van's value depends on how it is kept. A badly stored van can lose value much faster. A well-kept van from a brand with a strong resale name can beat every number on this page.
The biggest drop comes in the first year or two. Once a van is registered, it is used. The next buyer can't choose the layout, colours or options, so they expect a discount for that, on top of normal wear. After that the drop slows, because a five-year-old van and a seven-year-old van are much more alike than a new van and a two-year-old one.
What that means in dollars
The table shows the median starting price of a new van of each type on our site. It also shows what a typical first-year drop of 10 to 15% takes off that price.
| Van type | Median new "from" price | Typical year-one depreciation (10-15%) |
|---|---|---|
| Hybrid (225 models) | $67,990 | $6,799 - $10,199 |
| Full Off-Road (215 models) | $97,200 | $9,720 - $14,580 |
| On-Road Tourer (128 models) | $74,990 | $7,499 - $11,249 |
| Camper Trailer (120 models) | $32,990 | $3,299 - $4,949 |
| Semi Off-Road (75 models) | $88,500 | $8,850 - $13,275 |
| Pop-Top (50 models) | $69,490 | $6,949 - $10,424 |
| Motorhome (43 models) | $210,700 | $21,070 - $31,605 |
These are the makers' starting prices for new vans on our site, before options and on-road costs. The depreciation column is an estimate from the typical first-year range. The estimate is not a valuation.
Take a semi off-road van at the median price of $88,500. If it loses about 12% in its first year, that is about $10,620. Depreciation is usually the biggest single cost of the first year.
Depreciation sits alongside the bills that do arrive in our guide to what a caravan costs to run.
Know the new price before you talk resale
Every depreciation estimate starts from today's new price. What someone paid in 2021 is no guide. Check the current starting price of the model you are looking at before you value a used one.
Browse vansEstimate it yourself
Enter what the van cost new, then move the slider to its age. We have filled in the median price of a new semi off-road van to start. You get a range of values, because a rule of thumb can't be more exact than that.
Quick Depreciation Estimator
Rule of thumb onlyThis is a rough range from the typical rates above. It is not a valuation. Brand, condition, service history and the market on the day all change the real figure.
Assumptions: −10-15% in year one, −5-8% per year in years 2-5, −3-5% per year after that, with a floor of ~20% of the new price. These are typical ranges for the Australian market, and they are not a promise. A neglected van does worse, and a well-kept van from a popular brand does better. The estimate is not a valuation and not financial advice.
What slows depreciation and what speeds it up
The ranges above are wide because owners have a real say in where their van ends up. These are the things that make the most difference.
Slows it down
- Brand reputation. Established brands with strong dealer networks and parts supply hold value better than less established brands.
- Build quality that's aged well. No cracked seams, no sagging cupboards, no delaminating panels.
- Service records. Bearing and brake receipts, roof reseal history, warranty book stamped. Buyers pay more for a van with records.
- Stored under cover. Sun damages decals, seals and paint. A carport is one of the cheapest ways to protect a van's value.
- Popular, versatile layouts. A layout lots of buyers want is a layout that sells fast at a fair price.
Speeds it up
- Water damage. It does more harm to resale value than anything else. Even after a repair, it puts buyers off at every later sale.
- Brands no longer in production. With no maker behind the warranty, buyers want a big discount, and some won't buy at all.
- Oversupplied layouts. When the classifieds are full of near-identical vans, price is the only thing that sets one apart.
- COVID-era overpaying. Plenty of vans were bought at 2021-22 wait-list premiums. The market doesn't care what you paid, so those owners wear the extra depreciation from a higher starting point.
- Visible neglect. Perished tyres, corroded couplings, musty interior. Buyers assume the bits they can't see got the same treatment.
Buying used lets the first owner take the biggest drop
Buy a well-kept van at three to five years old, and the first owner has already taken the steepest part of the drop.
By that age, the teething problems have usually been found and fixed under warranty. The van often comes with thousands of dollars of accessories. Your own depreciation from there runs at the gentle end of the curve. The catch is that you also get however the last owner treated it. That is why the inspection matters even more than the price.
Thinking of buying used?
Our used caravan guide shows how to check a van for water damage and for a loan already on it. It also covers the common scams and where Australians buy used vans.
When depreciation is a tax deduction
If you only use your caravan for holidays, you can't claim its depreciation. It is only a tax deduction when the van earns income. That means renting it out through a site such as Camplify, or genuine business use. Private family trips don't count, however far you tow.
For income-earning use, the ATO (Australian Taxation Office) gives "caravans and camper trailers" an effective life of 12 years, under rental and hiring services. That works out to 16.67% a year on the diminishing value method, or 8.33% a year on prime cost. The ATO republishes these tables most years. The entry sits in the schedule to its effective life ruling, currently the effective life of depreciating assets ruling on the ATO Legal Database. Confirm the current year's figure before you lodge.
- Apportionment applies. Say you rent the van out 40 weeks a year and use it yourself for 8. You can only claim the income-producing share of the depreciation (and interest, insurance and repairs).
- Tax life and market life are different. The ATO's 12-year effective life is a formula for spreading the cost in your tax return. It has nothing to do with what the van sells for. The market curve earlier in this guide is a separate thing.
- Instant write-off rules change often. Small business asset write-off thresholds change with nearly every federal budget. Whatever figure you read, check it is current before you rely on it.
This is general information, not tax advice. Talk to your accountant before claiming anything. Everyone's situation is different, and the rules change.