Why you should buy an ex-rental motorhome

Let’s face it, motorhomes are a lot more expensive than they were a few years ago, pre-COVID -- up to 50 per cent or more in some cases -- putting a new model out of reach of more buyers on tighter budgets.

Of course, there’s always the second-hand market, including refurbished ex-rentals, but who wants to buy one of those?

Well, Apollo RV Sales is trying to take the fear out of owning a high mileage, potential 'money pit' ex-rental motorhome, by currently providing an industry-leading three-year warranty on its fully refurbished ex-rental fleet motorhomes, available for sale around the country.

But is it a good deal or a dud? We took a tour of Apollo's service and repair facility in Brisbane to try and find out...

Like many rental companies, Apollo off-loads its hire vehicles on to the retail market once they've done their duty, and to freshen up the fleet. But being Australia’s biggest RV rental operator as well as the owner of some of Australia's biggest dealerships, as part of the THL Group means it can give the often well-worn vehicles a pretty thorough freshen-up before they hit the dealer yards.

Once they're retired from the rental fleet, usually after a certain time period or number of kilometres, they make their way to Apollo's service and repair facility, which incidentally is in the same Northgate, Brisbane building where Apollo first started building motorhomes back in the 1980s.

While Apollo's main manufacturing facility (where the likes of Windsor motorhomes and caravans are built) is just over the road, the 'rental refurb' workshop operates independently, with a dedicated staff of six plus the use of various contractors.

During our visit we saw a variety of on- and off-road vehicles in various stages of repair and refurbishment, ranging from 4x4 ute-based campers to mid-sized campervans and larger 'Luton peak' motorhomes, mostly on the preferred Mercedes-Benz Sprinter base.

The first step is a comprehensive "triage assessment" to determine what needs to be either fixed or replaced; including interior 'gutting' of cabinetry, appliances and even the front dash, and right down to cupboard catches, switches, and hidden hoses and wiring. Apollo says it uses external contractors for any electrical and gas-related work, to not only ensure compliance but a high-quality job.

Common issues include worn-out temperature sensors on cookers, frazzled electrical connections and tired sockets, and while hard-wearing sinks often stay, other 'high touch' surfaces like benchtops and curtains are mostly replaced using made-to-measure parts created in well-equipped, on-site cabinetry and upholstery workshops.

We're told the philosophy is "the better the end product, the easier it will be to re-sell"; not a bad mantra when it comes to vehicles typically running north of 150,000km on the odometer.

Apollo says it doesn't usually replace body sealant as it generally has a lifespan of up to 10 years, and most of the ex-rental motorhomes are around five or six-years old. However, it does do a visual check for potential water leaks, and also does sprinkler testing as well as internal pressurisation testing, checking for soapy water 'bubbles' externally as a sign of any gaps, depending on the condition of the motorhome.

The vehicles are also sent out for exterior re-painting if required.

As far as addressing well-used mechanicals and other components of the base vehicle, Apollo says it opts for proven long-haul fleet vehicles to start with, like the Mercedes-Benz Sprinter which has a reputation for reliability over hundreds of thousands of kilometres before major mechanical work is required.

The vehicles are maintained by logbook servicing while on the rental fleet and are already likely to have had a number of replacement tyres and brake parts fitted, while any outstanding mechanical and roadworthy items are attended to by an outside contractor.

The in-house team takes care of final quality control checks, including a full camp set-up and ensuring replaceable items like smoke detectors are up to date. Then it's a full clean and detail, and the old rental decals replaced with a fresh set for that desirable showroom look.

The whole process might take a week or more for each vehicle, depending on how many external contractors are involved.

Before we leave we take a closer look at a finished vehicle out on the retail lot: a 7.0m long, six-seat, six-berth Kea River motorhome based on a 2019 Mercedes Sprinter cab-chassis, with the 2.2-litre, four-cylinder turbo-diesel and seven-speed auto.

It appears to have remarkably low mileage for a renter (just over 119,000km on the odometer), and comes sharply priced ($110K when we looked at it and currently reduced to $99,990).

Appearance wise, it's hard to fault from the outside, and a quick spin around the block (it only requires a standard car licence) doesn't reveal any concerning whines, clunks or thumps.

Drab rental-spec decor and dated appliances aside, it all feels nice and fresh inside too, while the versatile layout (cab-over front bed, front cafe dinette, combination shower/toilet, kitchenette and big C-shaped rear lounge that doubles as another big bed) will appeal as much to grey nomads as larger families.

The fridge is on the small side but there's an air-con, TV, radio, microwave and a good amount of floor- and potential storage space, plus some handy exterior add-ons like a bike rack and rear camera.

The icing on the cake is the current promotion being offered by Apollo: an extended three-year warranty (worth around $1800) that's provided by the National Warranty Company, and covers claims of up to $3000 on mechanical components, and up to $750 on appliances. It also covers out of pocket 'breakdown' expenses including accommodation and car hire for up to a week.

While it won't fully cover replacement of more expensive items like the air-conditioner (you'd have to upgrade to a better warranty plan to cover that), the three-year warranty does cover a lot of components (more than 50 base vehicle and motorhome items all up), from engine, transmission, and electrical and cooling mechanical components, to most of the motorhome fittings and appliances.

With the THL/Apollo operation re-purposing hundreds of ex-rental motorhomes every year, there's certainly plenty of choice and the opportunity to grab a bargain, particularly at the moment when decent discounts on slow-moving RV display stock are the norm.

Another upside is you can spend the money you save on a few upgrades or put it towards the fuel bills and travel expenses. Apollo says some keen DIY-type buyers like to tackle their own custom make-overs, such as turning the rear lounge into a permanent king-size bed with plush mattress...