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Published Oct 2024
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14 April, 2023 By: Brendan Batty
Caravans are a hefty leisure investment, but a pre-loved van can be a good option if your budget is tight. So what do you need to keep in mind if buying in the used market?
A lot of people are buying caravans right now. As you talk to people who work in the industry, as we shudder out of COVID's restrictions, the vibe is that demand has mostly outstripped supply. Indeed, the sales of new caravans have boomed. In 2022, Australia built 28,000 caravans and RVs and imported another 20,000. Never have Australians bought so many caravans.
Like the second-hand car market, used caravans have been in high demand. Used car prices have increased significantly compared to pre-pandemic prices, and caravan-focused website thegreynomads.com.au also reported big price increases on second-hand caravans.
That hype is cooling (in both car and caravan markets). Used car prices are slowly dropping, and caravan industry watchers are confident the same is also beginning to happen in the caravan market.
The founder of Australia's only specialised RV pre-purchase inspection service said, "We've had a situation where people were paying, if caravans are well looked after, the same prices they were when new five years earlier. I believe that's all going to drop off a bit now because a lot of people bought those caravans because they couldn't go overseas. Now, many of them have either done what they could or found out they don’t like it.”
Prices will come down
There is almost no doubt that this surge in the popularity of recreational vehicles will continue. It's a trend that began before COVID and was only accelerated by it. But there is some concern that new and used caravan sales will be affected as the world returns to 'normal'. That's not unprecedented. After Cyclone Tracy in Darwin in 1976, the caravan industry produced large amounts of new vans as temporary housing. Once the houses were rebuilt, however, the market was flooded with good quality second-hand vans, which had a massive effect on new caravan sales. Big businesses went broke in the aftermath.
It is likely we’re going to see a surplus of used vans on the market, which will slow down new van sales. The price of used ones will then come down as people realise they won't get what they've paid for them.
Why buy a used caravan?
If used caravan prices are inflated, is there any good reason to buy one? There certainly is. In fact, some argue that buying second-hand is, overall, the better option.
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Used caravans are still cheaper
Despite the hype, not many caravans maintain their value for five years. Caravans are a depreciating asset, and the most depreciation occurs just after it's bought (16.67 per cent per annum, according to the ATO). In the end, a quality used caravan in good condition will cost you less and still tow well, provide a high level of camping comfort and give you a bed you can drag all over the country.
The only thing you miss out on is the new caravan smell (and mostly they smell like fibreglass resin).
Used caravans are available right now
If you want to buy a new caravan, you will most likely have to wait at least 12 weeks for it to get built, but that could be anywhere up to 12 months, as the industry still struggles with demand, supply chain issues and labour shortages.
Used caravans are available right now if you've got the cash on hand to buy them. For example, at any one time on caravancampingsales.com.au, there are around 4500-5000 used caravans for sale from both dealers and private sellers, waiting for you to choose the perfect one.
Used caravans are better for the environment
In 2020, the German Institut für Energie- und Umweltforschung Heidelberg (Institute for Energy and Environmental Research Heidelberg) estimated the carbon emissions from the manufacture of a single caravan at 5.6 tonnes of CO2eq, which is about as polluting as burning more than 2850kg of coal. Germany is a much more sophisticated and efficient builder of caravans, too, so the impact of caravan manufacturing in Australia is potentially higher per unit.
But when you buy a used caravan, you don't significantly add to the direct or indirect carbon emissions of manufacturing it. If you already own an old caravan that just needs some maintenance, you may not even need to buy another. As English climate researcher and author Mike Burners-Lee writes in his essay How (Not) to Buy, "When you get something repaired, you show more personal responsibility, and you use up far less of the world's resources than if you buy a replacement."
How to buy a used caravan that isn't a lemon
So, if you're desperate for a caravan and don't want to wait for, or pay for, a new one to be built, how do you make sure you don't buy one that will ruin your holidays? Here are some things to be aware of when searching for a new van, focusing on the most common issues caravan repairers see.
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Leave the emotion at home
Even used caravans can still be significant purchases, so you need to be rational. When looking at a prospective van, remember that there are plenty more out there. No single van will make all your travelling dreams come true, and 'feeling good' about a caravan isn't a reliable substitute for actually checking over it carefully.
Buy from a dealer
Most smart dealers recognise that if there's an issue, they should fix it so it won't be a deal breaker for the potential buyer. The switched-on dealers solve those little things so their vans are more presentable, and perception is reality.
Some private sellers go over the top and try and hide things, or clean them up, but they just haven't got that same level of experience fixing caravans. It's something caravan dealers do better because, let's face it, that's their income.
Buyers are also more aware of their rights now under Australian Consumer Laws which state that products have to be fit for purpose, otherwise, the buyer could potentially have it replaced, repaired or refunded. So, that's levelled the playing field to a degree.
Check for water damage
Water damage can be a major issue in caravans, usually resulting from rainwater or plumbing leaking into the walls or floors and causing rot. Water damage can either be current and the problem is still there, or it has been repaired and dried out, but had already caused some rot before repairs were made.
Make sure you walk on the entire floor, up and down, to check that it's not soft in any spots, especially around the wet areas. Look down the sides of the caravan to ensure it's nice and straight with no ripples in the walls. That's often the first indication that it's had a repair. Check the window seals for Silastic. Firstly, they should have it, but not all manufacturers use it. If some windows have Silastic, but others don't, it could be a sign of a leak repair. The same applies if some window seals have aged, but others look new.
Inspect the chassis and suspension
With any damage to the chassis as the result of an accident, weld integrity or corrosion would be a red-flag issue on an RV inspection, and in the long run, it's probably easier to find another van to buy. There are plenty.
Check for hail damage
Given caravans are often stored outside, hail damage is quite common and often hard to spot because it's on the roof, which is quite high up, and so not many people inspect them. Existing hail damage can open seals and lead to water damage or affect the insurability of a caravan.
In general, expect to see more caravans with dents (of any kind) in the private market, as dealers often pass up on trade-ins or auction buys on vans with dents as they can be expensive to fix. Often, they're just cosmetic, so you can decide what that's worth to you.
Check the small details
There’s often not just one big issue with a second-hand caravan but a collection of small problems that can add up. Expect most caravans to have some combination of broken handles, hinges, gas struts and slight electrical niggles. Much of the time, they are cosmetic and usually not very serious, but they might help negotiate a better price.
Make sure everything works
There are a lot of moving parts in a caravan, so spend some time making sure everything that should move does, and everything that should turn on can. That includes ovens, stoves, hot water systems, inverters, lights and air conditioners, awnings and taps. Make sure the solar panels are providing charge and that the batteries are holding it.
Make sure you can tow it
This should seem obvious, but a surprising number of people don’t spend enough time considering this. Your car can tow a certain amount. Make sure that's more than what your prospective caravan weighs. See our story about caravans and your car’s towing limits. Once you know you can tow it, take it for a test tow, if the owner will allow it, and make sure it handles nicely and that the brakes and lights all work.
Get a PPSR check
Finally, once you've made sure everything is perfect, get a Personal Property Securities Register (PPSR) check (formally known as REVS) on the vehicle to ensure it hasn't got money owing on it and that it hasn't been written off or in a major accident. They cost less than $10, and you can do them online instantly. Then, if you do buy the caravan, insure it before you drive it home. When doing the online PPSR check, ensure you go to the government website, not the private site with a similar name that will charge you more.
A note on caravan scams
It's not uncommon for desirable caravans and motorhomes to be advertised for too-good-to-be-true prices. Almost certainly, if you find a late-model caravan advertised online and the price seems very attractive, it's probably a scam. Don't engage.
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