Downturn in RV Industry

[haha]

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

 

[Delawaredave5]

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.

 

[Rich_by_the_Bay]

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.

 

[ex_CFO_now_RVer]

There were still a lot of motorhomes on the road last weekend. We paid $4.49 per gallon for diesel, only needed 105 gallons.

Dave

 

[REWahoo]

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?

 

[ex_CFO_now_RVer]

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.

Dave

 

[Midpack]

I have a boat, but it will be the last one...

 

[TromboneAl]

This is a definite plus for us, with less of a summer traffic influx.

 

[FIREd]

I saw on CNBC today that boat repos have increased sharply in the past year(something like +200% if I remember well).

 

[Gumby]

My brother owns an RV campground down in the Ozarks. He has seen a severe drop off in business over the past year.

 

[Rambler]

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??

R

 

[REWahoo]

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.

 

[Rich_by_the_Bay]

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.

 

[Nords]

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...

 

[jambo101]

Bet the sail boat crowd are having a bit of a chuckle down at the marina.

 

[Ronstar]

I have the "prius" of boats. I should be able to get by with less than $20 in gas for the summer.

 

[Walt34]

...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".

 

[youbet]

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

 

[Ronstar]

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.

 

[ls99]

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.

 

[Grizz]

Does anyone know, is RVing commonplace in europe? They've had high gas prices forever. Whatever the answer is, it might be a sign of trends to come here in North America.

 

[DblDoc]

Yes - they call it caravanning there and in general use much smaller trailers/motorhomes.

DD

 

[Marquette]

Yes - they call it caravanning there and in general use much smaller trailers/motorhomes.

DD

And some downright sexy Airstreams

 

[Sarah in SC]

Caravanning is also very popular in New Zealand--if I ever go back for a trip, we'll be going campervan style!

Yeah, my airstream, not so sexy, like the old great aunt of airstreams! Of course, I am pretty sure the Argosy came about because they had some panels that weren't pretty enough for the "bare"stream, so began the legacy of the painted Airstreams--the Argosy model, which came in both trailer and coach models.
We get about 10 mpg, usually stay fairly close to home for most of our camping, but every year do go up to Virginia and that costs a pretty penny. But that is for the music festival and we'll do that if we have to eat mac-n-cheese for a month to afford it. Here's the aftermath...

 

[yakers]

Another way to go is a smaller RV. We had a 1985 VW camper but last year passed that on to older son (& grandchildren!). I wanted a teardrop but DW wanted a potty, shower, AC and such comforts so we went up one size to a T@da
www.tada-rv.com - T@DA - Microlite RV Teardrop Travel Trailer - TADA TAB Daddy

We tow it with a Jeep Liberty diesel, get 20 MPG while towing (on the flat, forget that going up the Grapevine). So far we have been out a couple times and loved it. Expect to do a lot more camping.