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Downturn in RV Industry
Old 05-19-2008, 02:04 PM   #1
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Downturn in RV Industry

The RV industry is the newest casualty of the economic slump. - By Daniel Gross - Slate Magazine

Maybe some bargains around for those who want an RV but haven't acted yet.

Ha
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Old 05-19-2008, 02:11 PM   #2
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Was talking with a guy at a marina - he said "a lot of folks" are not putting their boat in the water because of the gas.

I do seem to think I'm seeing more boats / RV on side of road for sale.
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Old 05-19-2008, 02:23 PM   #3
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That article is, as you can imagine, all over the RV boards. As a potential (but by no means definite) RV upgrader in a year or two, we had all but abandoned the idea because of the cost of gas. However, at current levels the price savings upon purchase of a new or new-ish class A gasoline RV is thousands lower than it was, as in $10K lower or even more. For diesels, the savings are in the 10s of thousands.

That's 2500 gallons of $4/g gas which at 7 mpg means 17,500 miles. Most RVs are driven under 10k per year. So arithmetically, the savings probably more than offset the newly expensive gas cost for the average buyer.

Obviously there's more to the decision than fuel, but there are the numbers.
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Old 05-19-2008, 02:41 PM   #4
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There were still a lot of motorhomes on the road last weekend. We paid $4.49 per gallon for diesel, only needed 105 gallons.

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Old 05-19-2008, 02:47 PM   #5
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This obviously doesn't work for the folks who are on a tight budget, but the current mindset of a lot of folks with high-dollar RV's goes something like this: "I paid $XXX,XXX to enjoy this thing, no way will I stop using it just because I'm going to be paying another $XXX per month for fuel."

Right Dave?
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Old 05-19-2008, 03:13 PM   #6
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The price of fuel can be hedged by purchasing energy stocks/mutual funds. Most commodities can be hedged to offset increases in consumer prices. You need to adjust your investments.

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Old 05-19-2008, 04:41 PM   #7
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I have a boat, but it will be the last one...
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Old 05-19-2008, 05:00 PM   #8
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This is a definite plus for us, with less of a summer traffic influx.
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Old 05-19-2008, 05:35 PM   #9
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I saw on CNBC today that boat repos have increased sharply in the past year(something like +200% if I remember well).
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Old 05-19-2008, 05:38 PM   #10
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My brother owns an RV campground down in the Ozarks. He has seen a severe drop off in business over the past year.
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Old 05-19-2008, 06:43 PM   #11
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I'm going to check out the selection when I'm back in the states in a few weeks. I've been daydreaming an RV for some time now, and was thinking about buying in a year or so...maybe it makes sense to jump in now before the economy recovers...I like RiT's math, wonder if it will work on DW??

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Old 05-19-2008, 07:28 PM   #12
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I'm going to check out the selection when I'm back in the states in a few weeks. I've been daydreaming an RV for some time now, and was thinking about buying in a year or so...maybe it makes sense to jump in now before the economy recovers...
I don't think you need to be in any rush. I expect prices will continue to drop for several months to come should gas and diesel prices continue to remain in the $4-5 level, something very likely to happen. You could save thousands more if you are patient.
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Old 05-19-2008, 08:01 PM   #13
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I don't think you need to be in any rush. I expect prices will continue to drop for several months to come should gas and diesel prices continue to remain in the $4-5 level, something very likely to happen. You could save thousands more if you are patient.
I agree with that guesstimate.

The one exception might be if you can pick up a new 2007 - there are occasional models still around. I've seen a few Damons, Monarchs, Winnebagos and Forest River gassers. They were very aggressively priced.
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Old 05-19-2008, 08:42 PM   #14
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However, at current levels the price savings upon purchase of a new or new-ish class A gasoline RV is thousands lower than it was, as in $10K lower or even more. For diesels, the savings are in the 10s of thousands.
Obviously there's more to the decision than fuel, but there are the numbers.
It's always better to upgrade your real estate at the pit of the recession downturn. Your sale may lose 20-30% but your purchase is also reduced by at least that much, and it's probably a bigger purchase to begin with.

Of course RVs depreciate a bit faster than homes, but I'm not sure if that's significant when gas prices are rising about 10x faster than the cost of electricity...
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Old 05-20-2008, 05:05 AM   #15
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Bet the sail boat crowd are having a bit of a chuckle down at the marina.
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Old 05-20-2008, 05:36 AM   #16
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I have the "prius" of boats. I should be able to get by with less than $20 in gas for the summer.

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Old 05-20-2008, 07:40 AM   #17
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...I like RiT's math, wonder if it will work on DW??

R
Didn't work on mine.

Just rolled her eyes and said "Nice try".
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Old 05-20-2008, 09:30 AM   #18
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I have the "prius" of boats. I should be able to get by with less than $20 in gas for the summer.

Because you just stay at the dock and use it as a patio? Or do you have something magic to give you many cruising hours per gallon
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Old 05-20-2008, 10:41 AM   #19
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The motor is so small you cant see it in the photo - its a 9.9 hp - and yes sometimes I cruise out to a fishing hole and use it as a patio for a few hours.
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Old 05-20-2008, 12:27 PM   #20
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The fuel cost of transporting my kayak to the local lake has gone up. However since I always stop at the local greasy spoon for coffee and BS, after paddling, some of the cost already figured in.

Attendance at the "truth and veracity league" aka liars club is fun. Though kayaking has been rough what with it raining nearly every day for the past two weeks.

The trailer, oh yes getting it ready, putting on new brakes etc. State forest lands not far way for boondocking. Saves fuel by staying within a hundred miles or so.
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