Advice on Selling Your Static Holiday Caravan or Lodge
Our article aims to give broad guidance on where to start when you’re thinking of selling your holiday caravan or lodge. We are regularly contacted by our members for guidance on the topic. It has, and remains to be one of our most common enquiries. There are many reasons for selling, but the most important thing is that you get the best deal.
What are your options?
Generally there are three options available to you when you want to sell:
- To sell your holiday home to your park owner
- To sell your holiday home to a trader or dealer (off park)
- To sell your holiday home to a private buyer to remain on park
Selling Your Holiday Caravan or Lodge to Your Park Owner
This is by far the easiest way to sell your caravan or lodge. A good place to start is to find out what the current value of your holiday home is, you can obtain this by contacting one of the NACO team as we have access to the most up to date valuation information.
If you want to sell to the park, you’ll need to contact a member of your park team to ask if they wish to purchase your unit. In most cases they will make you an offer – however you may need to prepare yourself – as there is likely to be a major difference from the amount you originally paid for your unit. When a park sell a unit to you it is as a ‘package’ which is inclusive of a pitch premium and usually a license agreement however when they buy the unit from you they are only buying the caravan – not the package. Parks are looking to buy low so that they can re-sell at a higher profit as the selling of new and used caravan is where the most part of parks money is generally made. The park’s offer will be based on the unit’s value and nothing else.
It is likely that the park will offer the current trade value however in some cases there is room for negotiation. Considerations in this regard are;
- Condition of caravan/lodge
- Double Glazing and Central Heating added after manufacture
- Inclusion of additional structures (Decking/Verandah/Skirting etc.)
- Pitch Position – if your caravan is on an ‘exclusive’ pitch this can give you the most leverage in negotiating the best price from the park as they will not only be interested in the re-sale value of your caravan but also the fact that they will be able to re-sell on your pitch for a higher premium.
Hopefully you'll be able to secure a sale, but if you are not able to reach a price that is agreeable then it is well worth considering some of the the options mentioned below as these may be more suitable and ultimately achieve you a higher sale price.
You should bear in mind that there are advantages to selling direct to the park; you would not be charged a disconnection fee or any sales commission and as there will be no inclusion of any third party. Once the deal is done you'll receive your money within a reasonable timeframe.
Make sure that you check your agreement – if you have one – and carefully read anything that you’re asked to sign.
For a current valuation or for additional guidance, please get in touch at firstname.lastname@example.org or by phone on 01255 820 321.
Selling to Your Lodge or Caravan to a Trader or Dealer
This is a good option if your park owner is not in a position to buy your unit or you may be looking to achieve a higher price than that offered by your park.
Start by contacting some traders/dealers to see how much they will offer you. In most cases it is likely to be similar to what your park may have offered but sometimes it can be substantially more so see what’s available, try ringing three of four to get the best price. We have provided some contact details below of some national traders/dealers which should get you started:
Once you have some prices, next refer to your pitch license agreement. There are generally two main considerations to bear in mind:
Notice to terminate your agreement
You may be required under the terms of your license to provide your park with notice to remove your caravan from the park or give them ‘first refusal’. Check your agreement to see what your obligations are in this regard. Within most agreements there will be a required 'notice period' which can vary from 14 to 120 days. We would always recommend submitting notice to the park in writing including any information required within the terms of your agreement (dates of intended removal etc.).
Disconnection and removal costs
There will (generally) be a disconnection and removal charge made by your park to ready your unit for collection by your purchaser by removing your unit from its pitch and transporting it to a collection point on park (usually the entrance or a car park accessible to a low-loading vehicle). The charges for this service vary dramatically across the UK and can range anywhere between £300 - £3500!
It is uncommon for a park owner to allow an outside third party to undertake this process for safety and insurance purposes. However in some cases your agreement does allow for alternative quotations. Refer to your documentation or contact the park owner for the definitive position.
Selling Your Caravan or Lodge Privately to Remain on Park
This is the best option if you want to maximize the sum you get by selling your caravan or lodge. The first thing to do is check your agreement or refer to your park owner to see what you need to do if you want to sell your unit in this way. You will then need to decide on the price you want to achieve taking into consideration any commissions or charges payable to the park owner.
Once this is done write to your park owner to advise them of your intention to sell your caravan or lodge. The information you'll need to provide in the letter will vary depending on the terms of your agreement.
The resale price of your caravan can be tricky to assess. We often say that a holiday caravan is a ‘package’. When you buy a holiday caravan, you are paying a price that includes several factors such as the pitch, the age and condition of the caravan. You may also pay more for location of the park, a good view, or for a large landscaped garden, the list goes on.
When deciding on the price that you want, do some research. The best place to start is the park. What price do they think you would be able to get? What have they got for sale that’s similar to your caravan? It may be worth looking at other parks in the area to see if there’s anything that’s comparable to yours; this will give you a good idea of the value of your caravan. Your park operator may be able to offer guidance as to a realistic sale price but NACO can help with this too – just get in touch.
Additional factors when deciding on a sale price:
- Disconnection charges
- Any refund due of pitch fees already paid.
It is also important to ask your park about how the new owner will be treated contractually, and how their pitch fees will be calculated. You do not want the sale to fall through because the new owner did not have enough information about their commitments.
One of major benefits to selling on park is if you are able to sell your unit on your pitch. Check the wording of your agreement carefully in this regard. If you are able to sell on pitch, it can make a huge difference to your selling power. If you have a pitch that has a sea view or may overlook the rolling countryside this may mean that your unit is more saleable or that you achieve a higher sale price. In some cases the park may suggest that your unit will need to be relocated in the event of a sale – check your agreement carefully and refer to us for specific guidance.
You may also be asked to sign a ‘private sale form/agreement’, please read it carefully and make sure you are happy with any additional information/terms that may be mentioned that you may not have been previously been made aware of. If this does occur and you have any concerns please get in touch for further guidance
Some parks do offer the facility of acting as a sales agent. In some cases this results in them offering you an agency agreement, which outlines things like price and both you and the parks commitments within the sale process. Do bear in mind that parks are likely to push their own units before ‘private sale’ units so it is usually worth advertising your caravan/lodge yourself as well, some of the following should help:
Sadly, most parks do not allow signs in caravan windows of any type. This is not the case at all parks, so before you start your artwork – ask the park and review your contract.
People are using the Internet more and more to buy products and source information. This is a great way of advertising your holiday caravan. You can use your search engine to find sites that offer this service, alternatively you can access a list in the ‘Members Only’ section.
- Local Press / Local Shops
Local papers are often packed with this type of advert, and in some cases the advert is free when you buy the paper. Shop fronts that allow post card type adverts are also a really good way of advertising your caravan for sale. Try and be as descriptive as possible in your ‘ad’ and really try and sell the benefits of the park too. If you can, include a photo of the caravan and pitch (there is a template you can use in the members section).
Remember, NACO members have access to our Advice Team, the member-only section of our website and FREE online advertisements for your caravan or lodge.
NACO Membership is just £24.00 a year and you’ll benefit from our member magazine, member only discounts, member only insurance rates, access to our advice team and much more - JOIN NACO TODAY!