Why do static caravans decline in value so much?

[LindorDoubleChoc]

I'm talking about the type of caravan on a public site that you'd buy and where you'd go for weekends or holidays and rent out to family/friends.

It seems they're really difficult to sell on at the same price, let alone a small profit. Does anyone know why and have an opinion on owning one?

A lot of sites say you have to get a new one after a certain number of years, or they charge massively to remove it. So it's not as simple as having one and maintaining it for ages. Plus ground rent, strict rules re access, number of months the site is open etc.

You don't own the land on which it stands. And usually you can't just move it or sell it to whoever you choose. I think the life of a caravan is only a maximum of 20 years or less as they're not built to last.

You're at the mercy of the site owners and some are less than salubrious. Utilities, sewage removal etc usually has to go through someone approved by the site owner. And they can increase the ground rent or whatever it's called whenever they like sometimes.
Some are decent I'm sure but it's a big risk.

I'd say it's definitely not a good investment. You're better off just renting one for a week when you fancy a staycation.

What’s the rationale on making a profit from one?

If its on a site, usually the site owner will insist on you selling it through them when you are finished with it, and pay you absolute peanuts for it, then sell it on for a lot more.

Its an absolute racket and should be more tightly regulated.

Probably because they are getting better and more modern every year.

Total and utter con, site fees are outrageous, some of the big name sites are 6k plus per annum. They sell the vans high and offer a pittance should you want to sell, many rules about selling, upgrading when a van becomes too old for the site. Leave it well alone.

If they are rental vans they get really heavy usage- sand, wet feet, dogs, kids. And then they get cleaned once a week for less than one hour. I think people just do not treat holiday accommodation with the same respect, and the damage shows quickly. I don’t think you could ever expect to increase in value. We looked at getting one once and figured that if we could rent it out to get our own holidays for free that was what we would gain, but no profit to be made. We decided not to in the end.

My SIL and BIL tried to get us to chip in for a static caravan with them, put a lot of pressure on us as well. I looked into it and told them no way. Its a big money sink, just rent one if you want to stay in one. I wouldn't want to keep going to the same place all the time anyway.

I have a friend in this position. They bought one thinking they would visit a lot more often than they did, plus they found renting it out a real hassle. It's only really worth it if you use it yourself quite a lot.

The price of new caravans and renting one shot up during/ just after Covid.

We went from a tourer to an older static then bought a brand new one in 2019 on the same site as the site was being developed and the new pitch had countryside views. It was also coastal.

Absolutely loved ours and it was literally a second home. Sadly we had to sell it last year as my husband changed jobs and we wouldn’t have been able to go regularly.
Ours was a quiet , well kept family site. We didn’t actually lose that much on it. The site owner took 15% of the sale price. This is pretty standard. No rentals allowed on the site we were on.
Caravans were allowed until 20 years old. Some allow older caravans especially well maintained ones.

If you want one I’d say just do your homework. Our site fees weren’t too bad. Some are more than double depending on location. You need to factor in gas bottles and electricity.
Some large companies are often in the news for buying back caravans at vastly reduced prices. Site fees can also soar.

We loved going to the same place and had friends in the village on the site. It was a lovely community and a very safe area. Great for dog walks too.

It depreciates like a new car. As soon as you drive it off the forecourt (or receive the keys for a static) it’s already worth considerably less.

Then the value nosedives from there. Also keep in mind that all the “free” things the site adds on to the deal for you - 12 months site fees, taking to your pitch, steps, plates, cups, TV aerial, gas bottles or mains connection etc - are actually very much not free & are added in to the purchase price already along with a very hefty commission.

This is currently a pretty much unregulated business & the miss selling that goes on is huge. There’s currently a large group action heading to Court about it.

Thanks for all the interesting replies! Now I think about it I seem to remember a feature about this on Jeremy Vines radio show maybe a year or two ago. I will look up the action group.