The financial benefits of owning and renting out a campervan or motorhome
- Used motorhome and campervan vehicles could earn a £60,000 profit over their remaining lifetimes, payback your investment in less than 4 years and make a 25%+ return per annum on your purchase price, through renting out their vehicles through Camptoo, new data has revealed
- Converted campervans such as the Mercedes Sprinter or Ford Transit provide the best return on investment for owners hoping to make money through renting out their vehicles, making on average £3,307 a year according to current data, with the best vehicles earning in excess of £7,000
- Lifespans of up to 28 years makes campervans and motorhomes a considerable longlife revenue stream – with an average, and higher income of £4,500 a year with Camptoo’s vehicles
Camptoo, the leading motorhome and campervan rental company, have used their data to show how you can make money out of renting out your vehicle in the UK, what the most typical booking consists of and the most popular vehicles with renters.
The data reveals that the typical campervan holiday rentals are for 6-7 nights, with each vehicle booked out for 35 nights of the year on average.
Data shows that the converted Ford Transit or a Mercedes Sprinter, two of the vehicles available to rent on Camptoo with asset values ranging between £10,000-£15,000, can earn £3,307 a year through rentals alone – with the best vehicles bringing in in excess of £7,000 – and average returns of 22-33% per annum, while vans converted by owners can be equally lucrative.
While low-end vehicles have the cheapest price per night at £104 during high season and £85 in low season, the low overall value of the vehicle offers amazing returns on the original investment.
It would take just 3.7 years (with 35 nights booked per year) to earn back the original value of the vehicle, and with each van having an average lifespan up to 28 years, has the potential to make up to £60,000 before being taken off the road (without the cost of ongoing maintenance taken into account).
High-end vehicles – which by comparison take the longest to make back that initial investment, but have the potential to make more money over a longer period of time – are perhaps more suitable for family usage and retain a higher value on sale, so all these factors should be considered.
The Fiat Roller Team Motorhome, at less than five years old, is worth more than £40,000 but has higher rental rates of £154 per night in high season and £130 in the low season giving owners potential base annual earnings of £4,900 – though this could be higher if rented out more frequently and would yield around 12%-15% per annum.
It would therefore take 8 years to make back a £40,000 investment on these annual earnings, but over the remaining vehicle’s lifespan it could earn the owners a profit of £77,600 (overall earnings £117,600,)
The mid-range Volkswagen T5 Campervan is the most popular product on the website with an average value of £40,000, and at £125/£109 per night in high/low season respectively, can make £4,095 annually – yielding around 10% per annum and resulting in a payback on investment of 9.7 years and lifespan earnings of £98,280 but retaining strong residual values which improves the economics considerably.
Commenting on the data, Camptoo’s Head of Wanderlust, Ed Bassett, said: “The peer-to-peer sector for renting out motorhomes and campervans has grown multiple times since our launch in 2018 in terms of bookings on our platform. We have helped generate over £1.5m of income for vehicle owners since 2018 and our fleet size is doubling annually.
“Vehicles between £15,000 and £25,000 offer very strong potential annual returns of 22 to 33% and up to 45% for the most successful, however if you are looking for longer and higher lifetime cashflow and stronger resale values, family motorhomes and the VW T6 makes a lot of sense to own and of course you should also consider your own usage requirement in choosing a vehicle alongside the investment potential.
“A converted campervan can be super cool to use, but might not work for a larger family and does not usually have a bathroom.
“We are seeing more people buying, selling and owning vehicles than ever before, as well as a rise in our year-on-year bookings proving that the UK is an increasingly popular place to tour. It’s clear that vanlife is here to stay.”
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