Supply, Demand and RV Prices

[bucko]

Originally Posted by jetlag

Another new supply issue, he said, was drivers to deliver them to the dealers. Again, fuel prices were quoted as one issue, as delivery companies are only paying so much. Also, the lack of new Pickups to buy and their prices, are making folks think twice about spending 70-100K on a new rig.

This brought a question to my mind...how do they get the larger RV's (class A and C) to a dealership? Auto's use car haulers for the most part, but what about RV's? Do they (the manufacturers) hire drivers to drive them down to a dealer, then fly them home? That would indeed add to a dealer delivery price to the cost of buying new.

[EA37TS]

Originally Posted by bucko

This brought a question to my mind...how do they get the larger RV's (class A and C) to a dealership? Auto's use car haulers for the most part, but what about RV's? Do they (the manufacturers) hire drivers to drive them down to a dealer, then fly them home? That would indeed add to a dealer delivery price to the cost of buying new.

Drivers that generally have a TOAD. The drivers are usually independent or work for a trans company that delivers RVs. The cost for delivery is passed on to the customer at purchase. Different RVs can have different delivery charges to the same dealer due to the negotiated rates.

Some high end dealers have their own drivers that go a pickup RVs for the dealer.

[bucko]

Thanks for explaining that.

[2edgesword]

There seems to be plenty of supply in some areas and I don't see anything that convinces me demand is going to see some huge increase this camping season especially given the price of fuel. If that's accurate I don't see the currently high prices holding up.

[bucko]

I just saw a commercial last night for an RV superstore advertising 30 stores throughout several states, and growing. Don't see how that will happen unless they are buying out other struggling RV stores.

I do wish them well, but I agree, these inflated prices have to go down in order for them to continue business.

Which leads to another question...who holds the financing for unsold RV's sitting on the lot? The manufacturer, or the dealership?

[klinner28]

The RV lot nearest to me was practically empty last year and now it's filled to the max.

A recession is imminent as well... that will crush the industry.

[RPR]

Dealers use Floor Plan financing offered by banks. Amount is normally based on value of inventory.

[artie p]

We ordered our Redhawk 12 months ago. Took delivery finally in December. Was told it would cost us an extra $5000. Unfair. Don't know what it might have cost me to get a lawyer and fight it. And they were very willing to return the $1000 deposit even though the contract said if we walk they keep the money. They knew they could sell it for even more. The dealer said that Jayco raised the price mid-stream

[2edgesword]

Originally Posted by artie p

We ordered our Redhawk 12 months ago. Took delivery finally in December. Was told it would cost us an extra $5000. Unfair. Don't know what it might have cost me to get a lawyer and fight it. And they were very willing to return the $1000 deposit even though the contract said if we walk they keep the money. They knew they could sell it for even more. The dealer said that Jayco raised the price mid-stream

There may be individual instances where a particular model is hot but in general there seems to be inventory galore.

[AverageGuy]

Originally Posted by EA37TS

Open any RV magazine and you will see the adds. Signs everywhere around campgrounds.

Campgrounds are filling up fast . Make by your summer reservations now or you’ll sit at home.

Too late. Weekends around here are full. Still some room during the week.

[AverageGuy]

Originally Posted by CAG

And that is why we pay cash for what we buy. I know, it sounds snarky but while we were doing this long before Dave Ramsey, it is so much better than owing your soul to the company store.

Until recently I was making more money on my investments than I would be paying interest. I wouldn't finance at current rates, but 6 months ago, it was a better deal.

Jim.