What the heck? I thought motorhomes lost value fast!!

Interesting article on our local news last night was about the RV world right now. RV Sales are increasing way above normal. Seems as if people are looking more into RV's than ever before caused what they say by the Covid! They are fearful of staying in Motels and hotels and this is an alternative to keeping safe and still being able to travel. Just an article I heard on TV news and not my opinion but certainly makes since that the prices would increase from heavy demand!!

Dad

valhalla360 wrote:

JaxDad wrote:
A 50+ year old farm tractor like mine sold recently near here for a little over THREE times what my grandfather paid for mine when it was new.

Depreciation is a non-existent thing today.

That's a little different situation. Depreciation eventually bottoms out and then the underlying condition and value of the item takes priority. Depreciation probably maxed out on your tractor at around 15-20yrs. After that inflation started pulling it back up relative to the non-inflation adjusted original price.

Of course a good tractor can be completely functional at 50yrs, so it retains a good underlying value.

Your average run of the mill 1970 RV in typical condition has a underlying value of a few dollars based on the scrap metal.

But to the OP's original post, once you update that to actual sales prices, 5yrs is likely resulting in 30-50% reduction in prices. Pretty typical depreciation.

CASE IN POINT....this weekend the Decades channel was showing the rerun of the TV series "Route 66". Buz and Todd drive a 1962 Corvette Stingray that sold for a little over $4000.00 brand new. Worth a bit more today!!!!

Just bought a 2015 Fleetwood Flair. Made the guy an offer. He accepted and said he had a lien on it. I said I would pay off the loan and give him what was left. He said he owed $5000 more than he was selling it for. NADA was 5k more than asking. He still owed 50k on it. He made many upgrades to it. I’m happy!

BurbMan wrote:
Everybody seemed to latch onto RVing as the best way to socially distance while on vacation, dealers can't keep units on their lots. Camping World is running an ongoing campaign on FB saying "Why store it when you can sell it? We will buy your RV!" 2020 was the best *ever* year for RV sales even though the industry lost a few months of production.

Consensus seems to be that by 2022 the RV market will flip to being a buyers' market as many of the folks that bought RVs in the covid period decide that they don't like RVing and look to unload their lightly-used units.

If you don't have to buy right now, wait another year and you'll get a much better deal.

I agree. And factor in the "I have to pay HOW MUCH to store this" factor and 2022 might be a nice buyers market as you say.

Al

When they decide to dump that big fat payment book will still be there ruining most of the good deals.

Everybody seemed to latch onto RVing as the best way to socially distance while on vacation, dealers can't keep units on their lots. Camping World is running an ongoing campaign on FB saying "Why store it when you can sell it? We will buy your RV!" 2020 was the best *ever* year for RV sales even though the industry lost a few months of production.

Consensus seems to be that by 2022 the RV market will flip to being a buyers' market as many of the folks that bought RVs in the covid period decide that they don't like RVing and look to unload their lightly-used units.

If you don't have to buy right now, wait another year and you'll get a much better deal.

The last Class A that I bought cost the seller over $10,000 to get out from under his loan. He had tried, without success, to sell it for 6 months and finally decided to take his loss and accepted my cash offer.

JaxDad wrote:
A 50+ year old farm tractor like mine sold recently near here for a little over THREE times what my grandfather paid for mine when it was new.

Depreciation is a non-existent thing today.

That's a little different situation. Depreciation eventually bottoms out and then the underlying condition and value of the item takes priority. Depreciation probably maxed out on your tractor at around 15-20yrs. After that inflation started pulling it back up relative to the non-inflation adjusted original price.

Of course a good tractor can be completely functional at 50yrs, so it retains a good underlying value.

Your average run of the mill 1970 RV in typical condition has a underlying value of a few dollars based on the scrap metal.

But to the OP's original post, once you update that to actual sales prices, 5yrs is likely resulting in 30-50% reduction in prices. Pretty typical depreciation.

Bionic Man wrote:
Yep. Absolutely a COVID thing. New RV production went down last year (just like many things). And with air travel so........difficult right now, people are looking for other ways to recreate.

Any "toy" is stupid high in price. RVs, boats, ATVs, sports cars, you name it. At some point (hopefully soon), things will change and values will go back down to reality. My guess is maybe this time next year, but not likely sooner.

I agree. Covid shut down conventional travel and everyone started gobbling up RV's. Demand is very high. Supply chains broke down and RV production dropped off so supply is low. I think once things get back to normal we'll see the market saturated with used RV's and prices will fall off.

It's also affecting reservations at CG's. Places we usually have no problem just showing up are booked solid months in advance. There are More Rv'ers than ever - more than CG's sites. My friend calls them COVID Campers.

Yep. Absolutely a COVID thing. New RV production went down last year (just like many things). And with air travel so........difficult right now, people are looking for other ways to recreate.

Any "toy" is stupid high in price. RVs, boats, ATVs, sports cars, you name it. At some point (hopefully soon), things will change and values will go back down to reality. My guess is maybe this time next year, but not likely sooner.