Future Used RV Market

[pulpwood007]

There have been record numbers of RV's sold during the past year. Many are first time buyers who hope to enjoy the freedoms of camping during the pandemic.

Many of these buyers have paid top dollar for trailers because of supply and demand. They have financed entry level rigs for 10 to 12 years. More expensive trailers can be financed up to 20 years.

Many will take 3 or 4 trips and find camping is not for them, or the pandemic will end and they will go back to their previous ways of vacationing. They will find how difficult it is to get into campgrounds without reservations months in advance.

Will we see many of these buyers decide to sell their new RV's within the next couple of years? What will the used market look like for sellers who have over-paid and financed a rapidly depreciating asset for long periods?

It may well be a good market for buyers, but sellers who are "under water" in their financing may not be able to afford such a "beating".

[thomasmnile]

Found RVIA wholesale delivery figures through October. Year over year sales are actually down slightly vs 2019, but primarily due to idled factories in the spring. Towables lead sales, motorhomes are down around 5% from 2019.

[MitchF150]

And that's what my post stated (no politics involved)... I got so much more for my used rig than I thought I would get, yet I bought the NEW rig for a lot LESS than I thought I'd have to pay, it was WIN, WIN for me... 🙂

Mitch

[2oldman]

pulpwood007 wrote:
Please...my OP had no intentions of politics or statements regarding the pandemic

We know.

[pulpwood007]

Please...my OP had no intentions of politics or statements regarding the pandemic. It only concerned the future of the RV market in relation to current buying habits.

Thanks,

[mich800]

The used vehicle market has never cared about an individual owners equity position. It's simply the number of units for sale relative to the number looking to purchase.

[GDS-3950BH]

valhalla360 wrote:
Assuming the vaccines are successful, we are probably looking at 2022 before we see a big dumping of RVs (if that happens at all). A lot of people will still be nervous about air travel for a year or two.

Nervous for a year or two, these are not flying around empty.

valhalla360 wrote:

Plus keep in mind, it's not unusual for a family of 4 to dump $10k into a 2 week vacation...so I don't think people are going to panic over a $20k RV sitting in the back yard.

From what I have seen the Covidiot Campers did not buy $20K rigs but the largest most expensive they could find or afford, or thought they could afford. When this pandemic all shakes out along with recent events, and the coming recession hits home because of that, a lot of folks are going to be in a world of financial hurt.

[pulpwood007]

bikendan wrote:
I think it will affect the supply and demand scenario. With a bunch of used RVs on the market, dealers won't be selling as many and they will have a glut of RVs, sitting on their lots.
They'll have to cut prices to compete with the used market.
At least, that's what we're hoping for, since we're planning on going to a 5th wheel next year.

If buying a new unit, I'll bet you can find some good deals for the reason you stated.

[MitchF150]

Dunno what it's like now after this whole Covid deal... But, I traded my old 2003 Prowler back in July of 2019 for almost 3 times what I thought they would give me...

ON TRADE... I jumped on it. It was a very well kept and maintained 16 year old TT and everything worked, no leaks, no nothing... BTW.. It sold within a week of my trading it for $2000 over what they gave me! I'm fine with that.. Good for the dealer..

I got my 2019 Rockwood for a great deal on itself, so gonna keep it for at least as long I'm sure.. So far, it's been trouble free and I've made a ton of mods to it, just like I did with the old Prowler..

In the end, it's all up to what the buyer expects and wants and can MAINTAIN on their own with an RV..

If you own a house and have to have service people handle a leaky faucet, or you don't even know where your breaker box is, then??? There you go..

You gotta just have some DIY skills and know some basic stuff to deal with any RV these days.

I've helped out many 'newbies' over my time while 'camping' and I wonder how some put their pants on! ha, ha.... But really, it just comes natural to me, so dunno what every one else does?

I'm an old fart, so maybe that's part of it? ha, ha.. 🙂

Mitch

[bikendan]

I think it will affect the supply and demand scenario. With a bunch of used RVs on the market, dealers won't be selling as many and they will have a glut of RVs, sitting on their lots.
They'll have to cut prices to compete with the used market.
At least, that's what we're hoping for, since we're planning on going to a 5th wheel next year.

[magicbus]

It’s no different with real estate in “vacation” destinations. Prices snd sales volume is going crazy. Not sure why, but eventually it will all settle down and there will be winners and losers.

Dave

[Gdetrailer]

pulpwood007 wrote:
There have been record numbers of RV's sold during the past year. Many are first time buyers who hope to enjoy the freedoms of camping during the pandemic.

Many of these buyers have paid top dollar for trailers because of supply and demand. They have financed entry level rigs for 10 to 12 years. More expensive trailers can be financed up to 20 years.

Many will take 3 or 4 trips and find camping is not for them, or the pandemic will end and they will go back to their previous ways of vacationing. They will find how difficult it is to get into campgrounds without reservations months in advance.

Will we see many of these buyers decide to sell their new RV's within the next couple of years? What will the used market look like for sellers who have over-paid and financed a rapidly depreciating asset for long periods?

It may well be a good market for buyers, but sellers who are "under water" in their financing may not be able to afford such a "beating".

Nothing has or will have changed, USE RV market WILL be the same as in the past.

What you are saying is the SAME thing that a lot of folks like myself who had to "prepare" for the "Y2K" computer debacle that the "professionals" said the world would go dark and everything computerized would cease to function due to the fact that since the advent of computers no one made "allowances" for the date going to 00..

Folks in a panic (not unlike what we are seeing with the Toilet paper hoarders of 2020) went out and bought every single generator out of stores..

Y2K came in and NOTHING happened, lights stayed on a most computer software still ran (although with wrong date)..

Should have been a stampede of used generators on the used market.. NOTHING of that sort happened.

RVs lose money anyways, anyone taking a loan on a RV acknowledges this by agreeing to P&I payments which not only double but TRIPLE the final cost to buy their RV..

Anyone who thinks they are going to make money on a used once RV outside the manufacturer and dealer is a real dreamer..

RVs wear out, go out of style, rust, break, rot and yes, depreciate in value.. There always will be some need for used RVs and there always will be folks looking at used because someone else took the financial hit before them.. Not everyone has bought new during this time, those are the ones that will win at getting most of their money out of a used RV..

[valhalla360]

Assuming the vaccines are successful, we are probably looking at 2022 before we see a big dumping of RVs (if that happens at all). A lot of people will still be nervous about air travel for a year or two. Others having dumped so much money into a camper will keep at it for at least a few years.

So probably by 2022, you may see deals on used RVs but I wouldn't count on reduced numbers at campgrounds for at least a few years.

Plus keep in mind, it's not unusual for a family of 4 to dump $10k into a 2 week vacation...so I don't think people are going to panic over a $20k RV sitting in the back yard.

[BB_TX]

Who knows. There is some of that even in “normal” years. But likely more so in the next 2-3 years. Or after the virus is finally corralled.

[Lwiddis]

You are speculating big time with multiple assumptions.