What does owning a caravan really cost?

We have friends who tell us smugly that it’s cheaper to fly to a great destination and motel it than to own a caravan and tow it there. They tell us how much they’ve saved; we tell them how much they’ve missed.

But the truth – just between us – is that there are some hidden costs in owning a caravan that many of us overlook…

PURCHASE COST

A caravan, along with the vehicle that tows it, is often the largest single purchase, other than their home, that a family will make.

Often, it’s made at the expense of something else – a holiday house, a boat, or perhaps a big overseas holiday.

So, if your budget is limited, you really need to assess what you could otherwise do with that money?

And, if you’re financing your caravan, consider whether what the monthly cost might stop you doing, particularly if you’re only planning to use it once or twice a year for just a few weeks at a time?

Also read: Biggest caravan buying mistakes

DEPRECIATION

The purchase cost of your camper or caravan is an obvious upfront expense in what in most cases is a depreciating asset.  Unless inflation is rampant and new prices soar accordingly, the new or used caravan you buy today is most likely going to be worth less when you sell it down the road.

That’s fine if you’re prepared to write off that loss to the enjoyment it has given you and your family.

The exception can be custom-built caravans and motorhomes that can have a long production time, so an impatient buyer may happily pay extra to buy second-hand and jump the queue.

However, if you’re buying a mainstream model, expect to write off up to 20-25 per cent in the first year.

MODIFICATIONS

As with cars, most used caravan prices don’t really give you the same value for the thousands of dollars in options most of us order with them, or purchase later.

The only difference is that a well-optioned van will usually sell faster than one with fewer options of the same model, age, condition and price.

SPECIAL EQUIPMENT

And what about all those ‘must-have’ accessories you’ve added later, like caravan movers, an extra battery and solar panels, a bike rack, etc? Expect their cost to be heavily discounted when you sell, as per the above rule.

Also read: How to avoid paying too much

SERVICE

Most manufacturers recommend that you have your caravan serviced at least once a year and there are good reasons for this.

Tyres perish or get older than the five or six year lifespan recommended by the tyre industry; wheel bearing seals fail and grease dries up; rubbers harden and perish. The list is endless.

If you take your caravan, motorhome or camper off-road, the maintenance costs are higher. Creek crossings can let water into your wheel bearings and cause corrosion; brakes and couplings can rust; stickers can peel and colours can dull, so if you’re travelling off the beaten track, factor in a service after each major trip.

A full service on most caravans can cost a few hundred dollars, but it’s inevitable that things will need replacing, so you'll need to allow for that.

REPAIRS

Not many of us tow caravans for a living, so it’s inevitable that we will break something, crease a tree or pole, or perhaps break cupboard catches and handles.

Accidents also happen, like hailstones breaking solar panels and tree-branches falling through awnings.

In many cases, these will be covered by insurance, but that’s another story…

INSURANCE

Most people insure their caravans and with the cost of new vans ever-higher, this can add up. It can cost about $1500 a year to insure a $100,000 off-road caravan, or around half that if your van owes you closer to the $55,000-$65,000 that the average medium size Australian caravan costs; scale that back roughly pro-rata.

In most cases you’ll pay an excess of a few hundred dollars per claim if you incur damage, unless you can prove that it wasn’t your fault. Many policies cover the cost of accommodating you while your van is being fixed or getting you, your family and your van home if it can’t be repaired locally.

For my caravan, I also have one of those ‘Total Care’ policies which covers my tow car for towing and emergency roadside service wherever I am. It costs me extra, but the extra peace of mind it gives me is worth it. It covers any vehicle I’m driving too, whether mine or rented, but it’s another cost associated with caravan ownership and my choice to travel by road to remote areas.

Also read: Choosing the right RV insurance

STORAGE

Strangely, unlike my car insurer, my caravan insurer doesn’t really worry where I store my caravan when I’m not travelling – whether it’s under cover, in a locked shed, or whether it has a coupling lock or a satellite tracker fitted.

On the positive side, this frees up the choice of where to store your second or third largest capital purchase when you’re not travelling.

As more of us gravitate to smaller houses on less real estate and apartments, ‘at home’ is a decreasing option. And while campers and smaller pop-top caravans will often fit under a standard carport, or even in a garage, most caravans will not unless this structure has been purpose-built to allow this.

If you have room outside at home, or on a friend’s property, you really should store it under a cover to preserve its appearance, as plastic windows and fibreglass can yellow with age and tyres can perish if continuously exposed to hot sun. Then, if you live in some parts of New South Wales or Queensland, there’s the potential of hail damage.

A cheapo cover from a bulk store will cost you as little as $150 for an average-sized caravan, but don’t expect it to last all that long when exposed to UV rays. The best custom-made covers can coat anything from $1000-$1200 up, and some have padding that protects the roof and sides from hail damage.

Also read: How to store your caravan

Unprotected storage in an open field can cost $800-$1000 per year, so when you add the cost of a cover, allow $1500-$2000 for the first year, or $30-$40/week. Covered storage is harder to find and while you’ll save on a cover, it will cost you up to $50/week.

The problem with any of these storage options if not at your home, is that your caravan battery will go flat if it doesn’t have any constant charge input. This imposes another cost, as running any battery flat reduces its lifespan and if it’s a deep cycle one – or worse, lithium – that’s expensive.

Ideally you should have it plugged into mains all the time when stored, or if this isn’t possible, allow its rooftop solar panel(s) to charge it when parked in the open. Catch 22 is that with a cover, these panels don’t get light and many people padlock a 40W portable solar panel to their A-frame to keep their batteries charged when the van is under-cover. Allow $80 to $100 for the panel and necessary cables.

If it’s locked away in undercover storage with no light, choose one with a 240v power option.

TOW VEHICLE

Of course I haven’t mentioned the tow vehicle, which is another cost-centre in itself. Many people who only travel for annual holidays are gravitating to lighter caravans or camper trailers that can be towed by family cars or smaller SUVs, as these can perform daily duties like school pick-up, sports drop-offs and shopping trips.

But unless you’re towing a camper that weighs less than 750kg, you’re still going to need a properly-rated tow bar, an electronic brake controller and appropriate wiring to a plug at the rear to run your trailer’s lights, activate its electric brakes and charge its battery  while you’re travelling. Then add towing mirrors at around $100 or more a set.

Then there’s servicing. Towing exposes your tow vehicle’s engine, transmission and brakes to more wear and tear than travelling solo, so it will need more repairs and maintenance.

It also uses fuel, so this has to be added to the cost of getting to wherever you’re going on holiday. Outback driving necessities like bull bars, vehicle mounted UHF radio, and possibly an air snorkel, also add up…

CONCLUSION

There’s another side to this ledger, which is that life in your caravan is much cheaper than in a motel, where you must buy everything in and usually have few ‘in home’ dining options. So because everything costs more – travel, accommodation and food – you won’t be able to afford to spend as much time away.

So you can work more, rather than travel – right? I’ve never heard someone in their last breath saying “I wish I’d spent another day in the office!”

Finally, there’s the sheer pleasure of travel, the anticipation, the road trip, the shared experience, things you see along the way and the people you meet.

Priceless!

Also read: Tips for full-time caravanning