Buyers market?

[robmharper]

Hello,

First post here so I hope I didn't already make a mistake by misplacing the category.

We have owned a double slide truck camper for about 7 years now. We are heading down the path of a 40' DP MH. Our price range is $90K. My question for the group is do you feel the timing is good or bad for buying a DP?

I live in California and we are probably days away from interstate travel shutdowns. Already in the Bay Area, people are getting cited with misdemeanors for traveling the highways. We are ordered to shelter-in-place. My thought is that this may just ruin the RV market. We don't know how long this Covid-19 situation will last.

Since a good majority of the current sellers of DP's are older retired folks, I hate to think that we may be soon taking advantage of some really good deals out there, while also taking advantage of unfortunate people.

On the other end, maybe this is the worst time ever to be buying a MH given the park closures and travel restrictions. But living through the 2008 crisis, I remember losing 50% of the value of my home. This isn't going to be easy either way.

Good or bad time to buy a DP MH? Should I wait for what may be better deals down the road or hold off anwait to see if we can even use the darned thing?

[rgatijnet1]

Have you thought about doing some research and possibly buying an RV out of your area in another State? Not all areas are going to be, or are already impacted the same, so perhaps someone know of some deals outside of California.

[robmharper]

way2roll wrote:

robmharper wrote:
Thank you all for your responses. A lot to think about. I made what I believe to be a respectable offer (8% under asking price which was 5% over book), and the dealer told me I would need to be flexible if I wanted this coach. I was caught off guard a bit with that response. I guess it's a little early to expect the dealers to turn the tide of what was their advantage. My wife works for teachers (advocate). She was sent home with an expected return of June 1. Her notice said this is the earliest date and to expect that date to move further out. We're talking about 3 months of people being out of work. We can (and should) hope for the best, but this thing is already taking it's toll on the economy and if people are not allowed to go back to work, or companies cannot afford to reopen, this is not just a recession we're forecasting. I may pull my offer and wait.

opnspaces: yes, citations are being issued. I know somebody indirectly who has been detained and I am a retired police officer with many friends still on the job. It's all over the news in Northern California. San Francisco is the worst. It's not going to get better before it gets worse up here.

Dealers don't often play the game. In 2008 A dealer had a leftover unit on his lot. Would not budge on the price despite being in a bad economy and I had heard they were in bad shape. I passed on the deal. 3 months later they went under. Not sure what happened to the assets, maybe the bank seized them. Maybe they knew it was going to happen when I was trying to make a deal so they didn't care. The exact same scenario played out at another dealer 10 miles away. Anyway, dealers seem to hold on to units sometimes rather than get them off the lot for less money. I can only guess why, I imagine it has to do with the value of the assets and the bank when they are in the process of going under. I guess if you could track down where the bank auctions them you might find the deal then.

Wow, that's an interesting tidbit. I guess I should be prepared for that. I suppose the statements about just offering a price I'm comfortable with right now on the coach that meets my needs really should prevail. I have this personal faupaux where I buy something today and see it a month from now on sale and then have regret. My wife is trying to break me of it, lol. I just like trying to time things right. Fact is we were going to buy before this crisis so I really shouldn't shy away from a deal now, hoping to nail the timing perfect. We'd like to start enjoying it now and get the heck out of California while everybody is on lock-down. Thanks for your input!

[way2roll]

robmharper wrote:
Thank you all for your responses. A lot to think about. I made what I believe to be a respectable offer (8% under asking price which was 5% over book), and the dealer told me I would need to be flexible if I wanted this coach. I was caught off guard a bit with that response. I guess it's a little early to expect the dealers to turn the tide of what was their advantage. My wife works for teachers (advocate). She was sent home with an expected return of June 1. Her notice said this is the earliest date and to expect that date to move further out. We're talking about 3 months of people being out of work. We can (and should) hope for the best, but this thing is already taking it's toll on the economy and if people are not allowed to go back to work, or companies cannot afford to reopen, this is not just a recession we're forecasting. I may pull my offer and wait.

opnspaces: yes, citations are being issued. I know somebody indirectly who has been detained and I am a retired police officer with many friends still on the job. It's all over the news in Northern California. San Francisco is the worst. It's not going to get better before it gets worse up here.

Dealers don't often play the game. In 2008 A dealer had a leftover unit on his lot. Would not budge on the price despite being in a bad economy and I had heard they were in bad shape. I passed on the deal. 3 months later they went under. Not sure what happened to the assets, maybe the bank seized them. Maybe they knew it was going to happen when I was trying to make a deal so they didn't care. The exact same scenario played out at another dealer 10 miles away. Anyway, dealers seem to hold on to units sometimes rather than get them off the lot for less money. I can only guess why, I imagine it has to do with the value of the assets and the bank when they are in the process of going under. I guess if you could track down where the bank auctions them you might find the deal then.

[Arcamper]

In 2008 I bought a new diesel pickup, new 5th wheel camper and a short sale house. It was name your price and I saved a lot of money due to a bad economy. I suspect this down turn will be as bad or worse. If anyone has the means to buy in a bad market the deals will be out there.

[robmharper]

Thank you all for your responses. A lot to think about. I made what I believe to be a respectable offer (8% under asking price which was 5% over book), and the dealer told me I would need to be flexible if I wanted this coach. I was caught off guard a bit with that response. I guess it's a little early to expect the dealers to turn the tide of what was their advantage. My wife works for teachers (advocate). She was sent home with an expected return of June 1. Her notice said this is the earliest date and to expect that date to move further out. We're talking about 3 months of people being out of work. We can (and should) hope for the best, but this thing is already taking it's toll on the economy and if people are not allowed to go back to work, or companies cannot afford to reopen, this is not just a recession we're forecasting. I may pull my offer and wait.

opnspaces: yes, citations are being issued. I know somebody indirectly who has been detained and I am a retired police officer with many friends still on the job. It's all over the news in Northern California. San Francisco is the worst. It's not going to get better before it gets worse up here.

[way2roll]

We were starting the process of looking for a bigger Mh to full time next year. I am in a good position to buy, so if the market continues the downward trend - and there's every indication this will get dramatically worse - I expect fire sales everywhere. I may end up picking up something this year if a deal comes along that's too good to be true.

[opnspaces]

robmharper wrote:
Hello,

Already in the Bay Area, people are getting cited with misdemeanors for traveling the highways. We are ordered to shelter-in-place.

The city that lets people do whatever they want including relieving themselves in the streets is giving tickets for people driving on the highway? Have you or someone you know experienced this happening?

[BB_TX]

RV sales follow the economy. When money is available people spend on non essential things such as expensive RVs. Sellers market. When money is tight people don't buy and may even have to sell. Buyers market. With so may workers being idled and nest eggs being sacked, there will be many starting to need any extra money they can come by. I would say buyers market now, and even more so in the weeks to come. But at some point it will suddenly end as things begin to settle out. Timing is anyone's guess.

If you find a good deal then go for it without feeling like you are taking advantage of someone. If they need the money, then they need it now. If it is a good enough deal, someone is going to buy it for that price.

[Terryallan]

Think about this. It could soon be a seller's market. As many of the Rv manufacturers have shut down, and there could be a shortage of RVs this spring, and summer.

[Dale_Traveling]

What type of market it happens to be is difficult to predict. Keep in mind that for a good number of owners having an RV is a discretionary finical expense and when things get bad the rig likely needs to go away, fast, as in before that bank comes to take it, which could flood the used market driving prices down over time.

If you find something tomorrow that fits your needs and budget then make the move and don't look back.

[way2roll]

jorbill2or wrote:
Actually, is it a good time? I’d say not yet, but soon. The full effect of the economy shutdown is a few months away. Lost jobs and the need for cash will cause a glut of new / almost new rigs being on a fire sale manufacturers/ dealers are sitting on way too much inventory ( they will soon file bankruptcy) which will lower values for the used market. People haven’t realized they are in big trouble yet , they will. But just not today. JMO
This too will pass it always has .. smart people wait and buy the down times , if they have the cash or ability , most are not in a position to buy which is why you can Get a deal. I don’t feel bad buying something Cheaply as it gets them out from under a big problem even if it greats a smaller problem for them.

This. It will most certainly be a buyer's market in the near future. You will see ads for RV's explode in volume within the year.

[jorbill2or]

Actually, is it a good time? I’d say not yet, but soon. The full effect of the economy shutdown is a few months away. Lost jobs and the need for cash will cause a glut of new / almost new rigs being on a fire sale manufacturers/ dealers are sitting on way too much inventory ( they will soon file bankruptcy) which will lower values for the used market. People haven’t realized they are in big trouble yet , they will. But just not today. JMO
This too will pass it always has .. smart people wait and buy the down times , if they have the cash or ability , most are not in a position to buy which is why you can Get a deal. I don’t feel bad buying something Cheaply as it gets them out from under a big problem even if it greats a smaller problem for them.

[midnightsadie]

buy at what ever price you and the seller agree to your both happy thats all that counts good times or bad.

[gbopp]

rgatijnet1 wrote:
The last MH I bought the seller had to write a $10,000+ check to the bank to pay off his loan because my offer was less than he owed on his loan. He did not have to take my offer but my offer was the best that he had gotten in 4 months of trying to sell the coach. Business is business.

I had a friend who did the same thing but, it was only $5000. He wanted to sell and felt it was the best deal for him.
Sometimes you have to do what you have to do.
I wouldn't feel bad about buying something at a lower price than it's worth.

[rgatijnet1]

The last MH I bought the seller had to write a $10,000+ check to the bank to pay off his loan because my offer was less than he owed on his loan. He did not have to take my offer but my offer was the best that he had gotten in 4 months of trying to sell the coach. Business is business.