Static Caravan Depreciation: What Affects Resale Value?

There is no single percentage we can responsibly use to predict the outcome of every static-caravan purchase.

You may see an estimate of around 15% a year in online guidance. My Holiday Caravan uses that figure but explicitly cautions that it is heavily simplified. Intasure’s article references the same source. The published material does not provide a transaction dataset demonstrating that every age, condition and sale route follows that pattern. ^[2][3]

Our approach is therefore to treat an assumed percentage as a budgeting scenario, not a valuation.

Before relying on any depreciation claim, ask what it measures. Is it comparing a new retail package with a later retail sale, a trade offer or an off-site sale? Does it use completed transactions or advertised prices? Does it include selling costs?

A percentage without those answers can make a weak assumption look precise.

The question is not just “what percentage should I use?” It is “what evidence supports the amount I expect to recover?”

Start with the written breakdown of what you paid for.

Your original commitment may include the caravan, installation work, additions, promotional benefits and the opportunity to use a particular pitch under an agreed arrangement. Some of those items are services already supplied or benefits already used, rather than things you can sell again.

Trading Standards guidance specifically warns against explaining a future buyback by reference to a guide price without making clear that it may exclude amenity value included in the original sale, such as a sea view. ^[4]

That matters when interpreting a large difference between the purchase price and a later offer.

The difference may reflect several things together: a change in the unit’s value, a different sale package, costs that are not recoverable and selling deductions. It is not automatically a clean measurement of the caravan’s physical depreciation.

Our suggested check is to put the original purchase breakdown beside the proposed resale offer and identify what each includes.

Do not calculate an annual “depreciation rate” from two prices until you understand whether they describe comparable transactions.

The NCC and BH&HPA distinguish private sales on the pitch, private sales off the pitch and trade sales back to the park. They also explain that a park’s subsequent retail package may include a new licence agreement and park benefits beyond the unit it bought from the departing owner. ^[1]

NACO’s selling guidance makes a similar distinction and recommends checking the incoming buyer’s contractual position, fees and the costs associated with the proposed sale. ^[5]

Use that distinction when comparing offers:

Scroll the table horizontally to read all columns. You can also focus it and use the arrow keys.

The practical conclusion is that the highest headline price is not necessarily the highest net amount, and the most attractive route on paper may not be available for the particular caravan.

Do not assume a park is obliged to buy it back merely because somebody says it will “make you an offer”.

The industry warning about greater losses in the early years is relevant when considering a new purchase. It does not establish a universal first-year loss or guarantee that buying second-hand avoids substantial losses.

For your comparison, consider the amount you would actually pay now, the condition evidence, repair requirements and the period offered on the pitch.

A lower purchase price can still be poor value if the caravan needs substantial work or the arrangement does not support your planned ownership period. Equally, a higher price needs to be justified by the actual package, not just the word “new”.

Check warranty eligibility separately. Willerby’s published warranty, for example, applies to the first owner while the home remains on its original plot. Do not assume that a pre-owned caravan carries the same manufacturer cover as a new one. ^[6]

Our recommended question is:

What am I paying for this particular combination of condition, specification, warranty and pitch arrangement?

That is more useful than assuming every used caravan has already passed through the expensive part of ownership.

Before putting an on-pitch resale figure into your budget, establish what arrangement a future buyer could obtain.

Trading Standards guidance says the agreement should clearly explain the length of tenure, how long the caravan may remain and the implications of its condition. It also requires fair and clear sale and transfer terms. ^[7]

Our suggested review records the proposed expiry date, extension provisions, age or replacement conditions and the process for a future buyer.

Keep three questions separate:

Physical condition: what evidence is there about the caravan itself?

Pitch permission: how long is it permitted to remain under the relevant arrangement?

Marketability: what would a buyer receive, and on what terms?

Do not assume that a physically usable caravan will retain an on-pitch resale market indefinitely. Equally, an agreement nearing expiry does not, by itself, establish that the caravan has no off-site value.

Both conclusions require evidence.

An attractive view or desirable pitch may be part of the appeal. Before treating that appeal as recoverable value, establish whether the future buyer can actually receive the relevant benefit.

This example is entirely fictional. The figures are not valuations, market averages, typical deductions or forecasts.

Assume you originally paid £60,000 for an on-pitch purchase package. Five years later, you compare three alternative ways of selling the same caravan.

For this illustration only, assume each route is permitted, any necessary approvals are obtained and the sale completes. The actual arrangements must be checked in a real case.

Scroll the table horizontally to read all columns. You can also focus it and use the arrow keys.

All costs shown include any applicable VAT. The £0 in the fictional trade offer means that this particular invented offer has no additional seller-paid sale charges. It is not a statement that park buybacks are always free of charges.

The deductions are standalone invented amounts. They do not imply a standard commission rate.

Excluded: setup costs outside the original package, running costs, repairs, borrowing costs and settlement, holding costs while waiting to sell, and any other unstated expenditure.

In this example, the off-pitch offer is £4,000 higher than the trade offer, but the amount left after the stated costs is £1,500 lower.

The private on-pitch sale produces the highest net proceeds here. That is a consequence of these invented inputs, not a ranking guaranteed to apply to every purchase.

Why the final row is not a depreciation curve

The final row measures the gap between the original package price and the amount recovered after the stated selling costs.

It includes differences between purchase and sale packages and the deductions incurred. It is not a measured annual decline in the standalone caravan’s value.

Nor is it the complete cost of five years of ownership. The excluded expenses still matter.

Use the example to structure your own comparison, replacing every assumption with an actual amount or an explicitly unresolved question.

Our suggested evidence check starts by identifying what kind of number you have been given.

Scroll the table horizontally to read all columns. You can also focus it and use the arrow keys.

Where possible, compare more than one relevant source. Investigate large differences instead of averaging incompatible figures.

For example, three advertised on-pitch packages and one off-site trade offer should not be combined into an unexplained “average value”.

For any guide-based figure, ask which edition or date was used and whether it describes trade, retail asking or another basis. Do not assume that the words “book value” settle the question.

Insurance value answers a different question

An insurance figure is not automatically the amount a buyer would pay.

For example, Leisuredays describes a new-for-old option that can replace a qualifying damaged unit with a new equivalent, subject to the policy. That is an insurance arrangement, not an offer to buy your used caravan. ^[8]

Check the policy’s basis of cover and keep it separate from the resale estimate in your ownership budget.

Start with the proposed ownership period and the sale route you could reasonably plan to use.

Our recommended approach is to record the future gross-sale assumption, the evidence behind it, the relevant pitch position and the likely deductions. Then test a less favourable result.

Do not turn a current offer into a future guarantee. Equally, do not assume that a current five-year-old model proves what today’s new model will sell for in five years. They are observations from different times and may involve different specifications and packages.

Where the evidence is weak, say so. A figure can remain a scenario without being described as a valuation.

Include the possibility of no completed sale. A £0 sale assumption is not necessarily the worst outcome if you must still pay removal or disposal costs.

For example, £0 received and £4,000 paid to leave produces a £4,000 exit cash outflow, not a cost-free exit. Those figures are illustrative only.

Trading Standards guidance says the agreement must make removal responsibilities and charges clear, and that relevant terms and charges must be fair. Obtain an itemised quotation and appropriate advice rather than assuming every stated charge is payable without question. ^[7]

The useful affordability question is:

Would I still be comfortable buying if the resale outcome were materially worse than the figure in the sales conversation?

For a cash purchase, one consistent calculation is:

Purchase and setup costs
+ running costs and repairs
+ selling or removal costs
− gross sale proceeds
= net ownership cost for the items included

The purchase-to-sale reduction is already captured in that calculation. Adding another depreciation allowance would count it again.

Alternatively, calculate net sale proceeds after selling costs and subtract those from purchase, setup and running expenditure. Do not then deduct the same selling costs a second time.

Keep the chosen method visible so another person can follow it.

Borrowing needs its own calculation

The amount recovered on sale and the amount left after settling borrowing are different figures.

Obtain the lender’s actual settlement information and check the requirements of your agreement. MoneyHelper recommends requesting a settlement statement when repaying a personal loan early; other finance arrangements require their own terms to be checked. ^[9]

Record borrowing separately from the caravan’s value. A repayment schedule is not evidence of a resale price, and paying down a loan does not establish that the caravan’s market value is rising.

Condition is worth protecting even though a specific financial return cannot be promised.

Willerby’s maintenance guidance identifies water ingress, floor deterioration and chassis corrosion as matters needing attention. Its current warranty information also makes clear that cover has conditions and exclusions. Neither provides a formula for how much a particular repair adds to resale value. ^[10][6]

Our recommended approach is to address material problems appropriately, retain maintenance and repair records and disclose the actual condition when selling.

For cosmetic improvements, separate what you will enjoy using from what another buyer may pay for. Do not assume that spending £5,000 on improvements adds £5,000 to the eventual sale proceeds.

Where decking or another addition forms part of the proposal, check its permissions, ownership, transfer treatment and potential removal obligations. Trading Standards guidance addresses the fairness of park requirements for pitch improvements and contractor restrictions. ^[7]

Technical assessment and repair work should remain with appropriately competent specialists.

If a buyback promise matters to your decision, ask who is making it, whether it is an obligation or an invitation to obtain a future offer, and how the price would be established.

Clarify the effect of condition, age, pitch arrangements, timing and deductions.

Trading Standards guidance specifically identifies the risk of a guide-price buyback explanation that does not make clear what value from the original package is excluded. It also warns against unsupported financial-investment claims. ^[4]

For part exchange, our suggested comparison is to obtain the replacement caravan’s complete price both with and without the exchange.

A larger allowance is not automatically a better deal if the replacement price or other charges are also higher. Compare the total amount you would need to pay and the package you would receive.

Keep written assurances with the proposed agreement. Where they conflict, seek clarification or legal advice before relying on them.

A disappointing offer does not automatically prove unlawful conduct. Equally, describing a loss as “normal depreciation” does not settle whether the original representations or terms were fair. The CMA explains that unfair consumer terms are not binding, but applying that principle to an individual dispute requires consideration of the actual circumstances. ^[11]

You do not need a guaranteed resale price to decide that ownership is worthwhile. You do need to understand how much uncertainty your budget can tolerate.

Our suggested pre-purchase record should explain the actual package price, the intended ownership period, the condition evidence, the future pitch assumptions and at least one realistic exit route.

Where an estimate depends on a permission, extension or buyer that has not been established, make that dependency visible.

Do not let hoped-for resale proceeds pay for the purchase in your mind before they exist.

The holidays may justify the cost. An unsupported promise about getting your money back should not be what makes the purchase affordable.

Park & Lodge considers the resale question as part of the buying decision, alongside the package price, ongoing costs, proposed agreement and important sales assurances.

For an identified purchase, Purchase & Negotiation includes investigating the commercial proposal, pursuing missing information and negotiating where there is credible scope.

For buyers still choosing a park and caravan, Full Buying starts with the brief and search, then investigates the chosen proposal.

Our work does not provide a formal valuation, guarantee a future buyer or replace technical inspections and appropriate legal or financial advice.

Buy for the holidays you want, with an exit position you understand.