In the wake of the COVID-19 outbreak, many people found themselves tempted by traveling in a campervan. But those hopeful to buy and convert a camper van themselves are finding that the prices are out of control. So why is converting a campervan so expensive in 2021? There are a couple main factors that extend far beyond just the vans and building materials.
Campervans are a great way to travel that doesn’t involve getting on an airplane, staying in hotels, or dealing with rental cars. Campervans and camping in general are well suited to social distancing. And with more options for working remotely, people have understandably been drawn to a more nomadic lifestyle, if only until things go back to “normal”. This article uncovers some of the reasons why campervan conversions have become more expensive.
Used Vehicle Market Issues
Lets begin with the most important part of a campervan, the van itself. Vans are just a small part of the larger market for all vehicles, which mostly grinded to a halt during the pandemic. However, vans are actually one part of the vehicle market that actually saw an increase in demand during the height of the pandemic. This is attributed to the rise in online shopping delivered to people’s homes.
As the world’s economies recover from the pandemic, the cost for used vehicles has seen massive price increases. The reasons for this are multi-faceted.
Less Vehicles Being Produced
First, due to supply chain shortages and uncertainty about the future, vehicle manufacturers scaled back on production of new vehicles. And less supply generally leads to higher prices.
Fewer Used Vehicles Becoming Available
Secondly, with people feeling unsure about the economy, their personal financial wellbeing, and less need to drive, the amount of new cars being purchased dropped. And when people aren’t buying new cars then there are fewer used cars that become available.
Supply Chain Issues
Lastly, supply chain problems are hurting nearly every industry right now. Producers of materials and components are having trouble scaling up to meet demand (a demand that has been artificially boosted by the government stimulus). Everything from microchips to raw materials ultimately affects the quantity and prices of new vehicles being produced. And again, what’s happening in the new vehicle market has ripple effects to the used vehicle market.
So all of these factors combine to create a new and used van market that can’t meet the demand. This generally means less vans are available, resulting in higher prices for the ones that are.
More Expensive Van Conversion Materials
Some of the primary building materials for campervan conversions have seen dramatic price increases. Two major ones that have gotten a lot of attention are lumber and copper. Most camper van conversions use wood for their structure and furniture, and copper is a primary component of wiring for the electrical system. While these are relatively small amounts, they can make up a significant portion of the cost of a campervan conversion, especially at such inflated prices.
Lumber Is More Expensive
Lumber has gotten more expensive because of increased demand and supply side issues. Homebuilding and renovations went way up during the pandemic. And several facets of the lumber milling industry are struggling to scale up after the pandemic. It takes two years even under normal circumstances to build a new mill.
This caused the price of lumber to rise over 200-300%.
Copper Is Also More Expensive
The price of copper has increased because of increased demand and potential runaway investor speculation. Copper will be an important material for transitioning societies away from fossil fuels.
Other Appliances, Products, and Supplies
But several other common components of a camervan conversion are also seeing price increases. Solar power or anything with a microchip has gotten more expensive.
Solar power, a common source of electricity for campervans, has actually seen an increase in price. We typically think of solar as always getting cheaper over time, but at least in the short run, the cost of solar has gone up.
And the cost of other components like vent fans, mobile refrigerators, water pumps, or really anything with a microchip has gone up in price.
Conclusion | Why Is Converting A Campervan So Expensive In 2021?
The reason why converting a campervan is so expensive in 2021 is ultimately just plain old supply and demand. Nearly every facet of buying and converting a van is suffering from decreased supply and increased demand.
The cost of new and used vehicles has increased, and vans especially because of their role as delivery vehicles. Every Amazon Prime Ford Transit you see is one less van you could have bought.
And the materials and products needed to convert a campervan have also seen moderate to extreme price increases. Those price surges combine to create a significant increase to the overall cost of converting a campervan.
My advice is that if you can afford to wait a year or two, then you should postpone trying to convert a campervan in 2021 or 2022. Make do with whatever vehicle you have now, perhaps car camping can provide many similar experiences to owning a campervan. But also life is short, and it’s very hard to even put a price on the experiences that we have had living in our campervan.
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