Have you ever considered what the real cost is of owning a static caravan?
In the UK, we love our caravan holidays – it is incredible to think that there are currently an estimated 365,000 private static caravan owners – and you can bet that due to recent times that’s definitely on the rise!
If you are thinking of buying a static caravan, we thought it would be useful to put a realistic guide together of what the costs are for owning one before you commit to a purchase.
It’s always wise to get the true picture before parting with your hard earned money.
In summary, your main costs will be;
– Initial purchasing cost starting from £5,000 for a pre-owned, to over £100,000 for a brand new unit.
– Any additional costs such as interest or fees – if you use a finance product to purchase
– Allowing for initial depreciation costs if purchasing brand new, like you would a car
– Ongoing running costs: Site Fees, Local Business Rates, Electric, Gas, Water, Wi-fi & TV licence plus TV/satellite subscriptions.
– Incidental repair costs for wear and tear, like roof, floor etc
– Static caravan insurance premium
– When buying caravan ‘off-site’, the associated transport costs and disconnection fees
– If you decide to rent out your caravan the costs like ; parks subletting fee, cleaning costs, landlords gas certificate & electrical appliance tests (PAT)
Initial Purchasing Cost
Generally speaking you are looking at investing anywhere between £5,000 and £50,000 for a pre-owned static.
Then, from approximately £15,000, and up to £100,000 for a brand new one, possibly more if you’re after a high end luxury lodge.
At Caravan Sleeps we work with various park operators and retailers who we can arrange an appointment or telephone call with to discuss your requirements.
Please go to our directory to search for stock that is currently available and submit an enquiry, or alternatively, contact us directly for advice.
Additional Finance Costs
Most holiday operators will be able to advise you of any additional costs incurred when taking out any type of credit agreement which is in-house. However, always ask and definitely check items on your credit agreement before signing on the dotted line.
It’s important to be mindful of any additional set up or early repayment fees, and of course the total amount payable at the time.
If you have decided to purchase a caravan privately with the help of finance, again always check and allow for any interest charges, agreement fees, early settlement charges, or maybe admin fees.
There are different products available, much like buying a motor vehicle.
The type of products on the market vary from personal loans, hire purchase, personal contract plan and credit cards.
Always check the small print before signing on the dotted line.
It will be particularly important to allow for a cost for depreciation when buying a brand new static home, just like you do when buying a brand new motor vehicle.
As a very rough guide, its suggested that you should allow for a 15% in depreciation in the first few years.
There isn’t much you can do about this fact, obviously you can cut the initial depreciation out by alternatively purchasing a pre-owned caravan – a pre-owned will depreciate still, but at a slower rate.
Take your time to weigh up the costs of a brand new caravan versus a pre-owned one.
In the UK, you would expect to pay all running costs for your static caravan, not forgetting it will be necessary to pay other fees, such as for the general upkeep of the specific holiday park itself.
Annual site fees differ from park to park, £4,125 is the lowest annual fee payable, and they can vary, depending upon where the holiday park is situated – and also by the size of your holiday home.
Fees do generally include:- maintenance, security, entrance to holiday park venues plus its facilities like; swimming pools and entertainment.
Business Rates are generally calculated according to the number of caravans and other dwellings on the specific land in question. Business rates can sometimes rise year on year due to the type of business it is.
You are responsible for paying the holiday park for gas, electricity and water. Some holiday parks have meters installed – check if any extra fees are due on energy meters supplied to your caravan.
Finally, don’t forget to allow for Wi-fi & TV licence plus TV/satellite subscriptions.
Always check paperwork with the park operator for a guide towards ongoing running costs
Incidental Repair Costs
There are always those unexpected or incidental costs to wisely allow for, mainly due to natural wear and tear, or perhaps the weather in the UK!
Such examples may include; caravan roof and skylight, leaking roofs and pipes, caravan floor, blocked or leaky gutters and chassis corrosion.
In an ideal world always try and buy from a manufacturer or company that can offer you a long and comprehensive warranty.
It is strongly advised to put some money aside for those unexpected incidental costs!
Some holiday parks may supply an insurance option as part of their site fees. If however you are organising your own, make sure you compare different options
Type of insurance you require will depend on your usage, if for example you are renting out your caravan, you may need income protection insurance and public liability protection on your policy.
Always shop around for comparison insurance quotes
Buying A Caravan Offsite
If you decide to purchase your new holiday home offsite, you will need to consider the cost of transporting it to your designated pitch on your chosen holiday park. These transport costs will clearly vary a lot depending on where your caravan is currently sited.
You could generally estimate costs starting from £300, but maybe up to £3,000!
Also keep in mind, you will also be charged for various disconnection fees; water, drainage, electricity and any other preparation costs for towing it to its next destination.
Costs For Subletting
If you decide to earn some extra money by subletting your caravan, don’t forget there are costs involved here.
A holiday park will normally charge a subletting fee, it could be around 25% – you need to check.
Then, when one set of tenants vacates, then another arrives, you need to allow for a changeover clean – it could be around £50 or so.
It’s also a requirement to have a gas certificate and to have electrical appliances (PAT) tested, so allow for around £95 and £40 respectively.