Shearing the sheep

wapiticountry wrote:

dedmiston wrote:
It's reminiscent of the housing bubble. Shame on the lenders for lending at those prices. Especially now with interest so low, it seems like the lenders are just asking for trouble but with little upside. On the one hand, they'll get low interest payments from the borrowers, and on the other hand they'll be facing tons of repos that will just end up going to auction.

It's not a lender's job to determine fair market values. Unless the Dealers are putting guns to the heads of the customers they are responsible for their decisions. How would you feel if you went to Ruth's Chris, had a nice steak dinner and your credit card denied the transaction because they felt you should have went to Sizzler.
Is there actually any evidence prices have risen or is it just speculation. Have the MSRP of rigs actually risen dramatically or are dealers just not discounting as deeply as they have done in the past? Just because an RV listed for a price 5 years ago doesn't mean a similar RV today will be the same price. Prices do rise over time.

Yes, except... :B

So yeah, I'm totally a free market guy, but the steak analogy kind of falls apart since it's a durable good with a residual value. Ruth's Chris doesn't have to worry about you eating a third of the steak, loosing your job mid-meal, and then them having to repo the unused portion of your steak.

I wasn't so much criticizing the banks for lending too much money to gullible people as criticizing them for making risky loans that are likely to blow up their books when the borrowers start to default and so many repossessed RVs flood the auctions.

The attraction of the lending kind of made more sense to me back when the rates were higher and the lenders got so fat, but now with rates so low, I don't see how it could be worth the risk. I guess they have to sell new business though.

dedmiston wrote:
It's reminiscent of the housing bubble. Shame on the lenders for lending at those prices. Especially now with interest so low, it seems like the lenders are just asking for trouble but with little upside. On the one hand, they'll get low interest payments from the borrowers, and on the other hand they'll be facing tons of repos that will just end up going to auction.

It's not a lender's job to determine fair market values. Unless the Dealers are putting guns to the heads of the customers they are responsible for their decisions. How would you feel if you went to Ruth's Chris, had a nice steak dinner and your credit card denied the transaction because they felt you should have went to Sizzler.
Is there actually any evidence prices have risen or is it just speculation. Have the MSRP of rigs actually risen dramatically or are dealers just not discounting as deeply as they have done in the past? Just because an RV listed for a price 5 years ago doesn't mean a similar RV today will be the same price. Prices do rise over time.

It is called inflation. The government prints money and dumps it into the economy. It will have an effect. It is beginning to show up here and there. The national debt is now beyond belief.

Same issue with houses right now in our area. I'm seeing $225,000 properties selling for $300 to $350,000 within 3 days of hitting the market. The bubble will burst again.

Let's all welcome the new RVers by telling them how stupid/foolish we think they are for buying a RV at this time, especially if they finance part of the idpurchase. Personally, I get the appeal of spending nights in my own bed and preparing food in my own kitchen when enjoying my time off.

Call me a sheep, but I am picking up my new travel trailer today. I paid ten percent more than a year ago but got ten percent more for my trade in. Financed part of the purchase at five percent. Net change is just a few dollars a month and I have a brand new trailer with a two year warranty. The dealer said that for every seven trailers that arrive, five are already sold. I believe him, as a whole row of Jayco trailers disappeared in the last week.

There's going to be some great deals on barely used RVs in a couple of years though...

See, there's a silver lining to every cloud...

bgum wrote:
I really feel sorry for those new RVers who have recently purchased or who plan to purchase an RV. The prices are far in excess of value. We are not in the market for ourselves but was thinking of buying a teardrop for our daughter and son in law. Just to get them out of a tent. Trailers that had been listed at $12 grand are nearly $21 grand. A teardrop mind you. Even the used units are out of sight. As in the past when this bubble burst a lot of dealers with go belly up and there will be a glut of used units f s b o where maintenance has not been performed. Nature of the beast.

economics 101...supply and demamd. great time to sell, not so much if buying.

Prices are driven by demand. And demand is very high right now.

Price goes up when something is popular. I’ll save my sorrows for people’s real needs.

One of the GOOD things for me is the UP-Market on RV's
Mine was declared a total. Now before you start expressing sympathy I've been thinking for the last couple of years that I need to start thinking about moving back to a sticks and bricks. This beast is starting to become a bit much for me. What I used to do swiftly is now a 2-3 day job (Set up/packup)

And the circumstances of the accident (A hit and run parking lot job) well.. NOT MY FAULT.

So due to the UP-Market.. I get more :)