If the idea of hitting the open road for a school holiday adventure, weekend road trip or even a year-long “big lap” of Australia sounds appealing, perhaps you’ve considered investing in your own motorhome.
But before you start visiting local dealers or searching online listings, it’s important to understand the pros and cons of buying a new versus used motorhome – including factors such as price, features, fuel consumption and, of course, insurance.
In this article, we’ll look at how to decide which option might best suit your needs, from price and functionality through to motorhome insurance considerations.
Aussies love a road trip
It’s no secret that we Australians love exploring our own backyard – and with a world-famous landscape that stretches from postcard-perfect beaches to the spectacular outback, why wouldn’t we? Some people even make a motorhome their full-time residence, working remotely or making the most of retirement.
According to figures from Tourism Data Australia, Aussies took 15.3 million caravan and camping trips in 2023 and spent around 60 million nights travelling with 90% of those nights spent in regional Australia.1
“We know that caravanning and camping is still very attractive to the family market, and this will often see them travelling as a family unit for long periods of travel,” says Luke Chippendale, spokesperson for the Caravan Industry Association of Australia (CIAA).
Chippendale says that, as of January 2024, there were more than 900,000 caravan and campervans registered in Australia, with around 113,000 of those categorised as campervans or motorhomes.
How is a new or used motorhome different to a campervan?
Before considering the pros and cons of a new motorhome versus a used one, it helps to know how a motorhome differs from a campervan or a caravan.
The CIAA divides recreational vehicles (RVs) into several categories, including tent and camper trailers, pop-tops, caravans and three separate classes of motorhomes, which differ primarily in their chassis.
While Class A motorhomes are typically top-end RVs that are often custom built and can look a bit like a bus, it’s Class C motorhomes that are probably the most familiar. They range from economy to luxury models and tend to be built on a cab (generally a truck) chassis with a caravan-style body.
Class B motorhomes are a smaller option and might also be known as a campervan. They usually have a compact fit-out in a high-roof or pop-top van and include a kitchen and an eating and sleeping area, with larger models sometimes including an en suite.2
How much is a new motorhome?
When it comes to price, there is, understandably, a significant difference between a new motorhome and a used motorhome.
“A new campervan [Class B motorhome] has an average listing price around the $90,000 mark, while a brand new [base model Class C] motorhome will typically be around $200,000 depending on features,” says Chippendale.
By comparison, at the time of writing this article, online sales listing site caravancampingsales.com.au has the cost to buy a used motorhome starting from about $12,000.3
As with buying any second hand vehicle, the price of a used motorhome will depend on several factors including the age and condition of the vehicle, as well as included features.
While a new motorhome will likely be more expensive upfront, it will typically have the latest technology and amenities – these could include smart home technology, solar panels and high-quality entertainment systems. If you buy new, you may also benefit from manufacturer warranties. On the other hand, a used model will generally be more budget-friendly, but you might need to consider potential maintenance costs down the road.
Features to consider when choosing a new or used motorhome
Listing the types of features you’d like in your motorhome can be a good starting point when deciding if you want to buy new or used. This may depend on how often you plan to use your motorhome and how far you’ll be travelling.
For example, if you’re off on a “big lap”, it might be important to have creature comforts such as solar panels and inverters, integrated Wi-Fi and smart appliances. But if you’re planning to mainly use your motorhome for weekend getaways, these features might not be so important.
If you’re a first-time motorhome owner, you might want to consider some of the advanced safety features found on newer models such as advanced braking systems, rear view cameras and blind-spot monitoring.
If you’re buying a new motorhome, you might want to ask your salesperson whether the features on your list are standard or whether they’re paid extras.
However, a quick look at online sales listing websites will show it’s not just new motorhomes with high-quality inclusions – a used motorhome can still be equipped with custom built features and, depending on the previous owner, you may find a used motorhome with valuable upgrades, such as solar power systems, improved plumbing, or disability modifications.
What to consider when buying a motorhome
Tap the hotspots below to see the key things to consider.
Prices for a new or used motorhome vary widely, and don’t forget additional expenses such as insurance and fuel.
What features are essential to you? These may include solar panels, integrated Wi-Fi or smart appliances.
Consider how you’ll use the motorhome as well as factors such as size, comfort, fuel efficiency and ease of handling.
New motorhomes offer warranties, while used ones may cost less but could incur higher maintenance costs down the road.
How much fuel does a motorhome use?
Fuel efficiency can be an important factor when comparing new and used motorhomes – especially if you’re planning longer trips.
As with cars, advances in engine technology mean that newer models may be more fuel-efficient than older ones. A new motorhome may even come equipped with features such as eco-mode or hybrid technology.
However, if you’re only planning occasional short trips, a used motorhome with higher fuel consumption might still be more cost-effective overall than a new model.
It might be worth calculating the expected fuel costs based on how often and how far you plan to travel before making a decision.
How much does it cost to insure a motorhome?
The cost of insurance is also a factor when deciding between a new and used motorhome.
Marni Jackson, Youi’s Head of Product for Vehicle, Lifestyle and Leisure, says the age and condition of the motorhome may impact your insurance premium. She says that while a new motorhome may have a higher insurance premium compared with a used motorhome, due to its higher value, that’s not the only consideration when determining your premium.
“So many other factors come into the pricing, such as the age of the driver, how they use the motorhome, the age of the vehicle and any special features or modifications that the vehicle may have,” Jackson says.
As with any vehicle insurance, what is covered under your policy will depend on the type of policy you choose for your motorhome – Youi’s policies include Comprehensive, Third Party Fire & Theft, Third Party Property Only and CTP insurance in New South Wales and South Australia.
When it comes to used motorhomes, Jackson also notes that you’ll need to check that any custom modifications – including disability modifications – and accessories are adequately insured.
“Youi offers motorhome-specific insurance options, including coverage for motorhome contents, which can protect valuable items like camping equipment, electronics and appliances,” she says.
“If your motorhome includes modifications, ensure they are documented and included in your insurance policy so they will be covered in the event of a claim.”
Questions to ask when buying a used motorhome
Purchasing a used motorhome may save you money, but it’s essential to look out for potential scams. The Australian Government’s ScamWatch site identifies a few red flags to bear in mind, including a price that seems too good to be true or an online seller whose website has no terms and conditions, ABN or privacy policy.4
You might also want to ask sellers about their vehicle’s history – that includes its accident history, mileage, number of previous owners, current registration and insurance status, and list of safety features.5
Keep in mind that if you’re buying a new motorhome, you are protected under the Australian Competition and Consumer Commission’s (ACCC) consumer guarantees which are separate from any manufacturer’s warranty.6
This means that if your new motorhome has a major defect, you may be entitled to a refund or replacement from the supplier (usually a dealership) – even after the expiry of any manufacturer’s warranty.6
How to buy a used motorhome
If you’re leaning toward buying a used motorhome, it’s worth considering a few key steps so you can be as confident as possible that you’re making a sound investment:5
- Research and set a budget: Know what you can afford, and factor in potential repair costs or upgrades. Online sales sites can be helpful for getting an idea of current pricing.
- Inspect the vehicle: If you’re not comfortable doing this yourself, arrange for an independent inspection through your state or territory’s motoring body.
- Check for debt: You can find out if the vehicle is free of debt through the Personal Property Securities Register. Just remember to have the Vehicle Identification Number (VIN) or chassis number ready.7
- Arrange insurance: Once you’ve bought the motorhome, CHOICE advises getting the necessary insurance before you drive it anywhere.5
Once you’ve purchased your motorhome, you might also want to check your state or territory’s licensing and registration requirements before you hit the road.
New or used – what’s best for you?
It all comes down to your circumstances and preferences; and, ultimately, the best option will depend on your budget, how – and how often – you plan to use the motorhome, and what features you value most.
New motorhomes offer the latest technology and warranties but usually come with a higher price tag. And while a used motorhome can cost less upfront, it’s important to check the fine print and protect yourself from dodgy operators.
Once you’ve made your selection and purchased a motorhome, consider starting a quote for Youi insurance to help keep it covered. It’s insurance that’s a bit more you-shaped.
1 Source: Australian Trade and Investment Commission – Caravan and camping data
2 Source: Caravan Industry Association of Australia – Types of Recreational Vehicles
3 Source: caravancampingsales – Motorhomes & Campers for sale in Australia
4 Source: ScamWatch – Product and service scams
5 Source: CHOICE – How to buy a used car, April 2024
6 Source: Australian Competition & Consumer Commission – New caravans
7 Source: Australian Financial Security Authority – Do a used car or vehicle search
