Thread: On the road again: RV sales see an upswing

On the road again: RV sales see an upswing

Updated 31m ago |
By Paul Davidson, USA TODAY

A closely watched report Tuesday on consumer confidence is expected to show modest improvement, but some economists are heartened by a more obscure measure of buyer sentiment: recreational vehicle sales.

RV wholesale shipments jumped 16% in August from July to a seasonally adjusted annual rate of 209,800, the Recreation Vehicle Industry Association reports Tuesday.

While that's about half the industry's torrid sales pace in 2006, it's a 136% surge from January. The trade group predicts 146,200 shipments in 2009 and a 27% increase in 2010.

Sales of motor homes and travel trailers are seen by some economists as a leading indicator of the economy's health, because they're among the largest discretionary purchases a consumer can make.

Trailers cost about $6,000 to $60,000, while motor homes — which include a living space within a vehicle — typically fetch $50,000 to $300,000. About 8% of U.S. households, mostly families and retirees, own an RV.

RV sales began dipping in early 2007, many months before overall retail sales declined and the recession's start in December of that year. In recoveries, camper sales often heat up early, as buyers who put off purchases grow optimistic enough to open their wallets.

"Prospects that we talked to a year ago, even in spring of 2008, are now beginning to come out and buy," says Scott Hayden, president of Driftwood RV, the largest RV retailer in New Jersey.

After plunging by a third in 2008 and early this year, Driftwood sales in September are 15% ahead of a year ago and up 4% vs. September 2007.

Industry officials attribute the rebound to improved credit for dealers and consumers, low dealer inventories and stable gas prices. The big driver is rising buyer sentiment, which could augur more robust retail sales than predicted.

"It would suggest the worst of the (stock market) decline seems to be over, and the consumer is in a position to come back," says Indiana economist Morton Marcus, who studies the RV market.

Manufacturer Airstream has boosted production 30% the past six weeks. Keystone RV is hiring 200 workers to fill added demand.

Some economists put less premium on RV sales. Wells Fargo's Mark Vitner says buyers are likely retirees who deferred purchases, a trend that won't extend to other big-ticket items, such as cars.

http://www.usatoday.com/money/economy/2 ... cles_N.htm

Our area being the big one for RV sales/repairs, etc. we have a few friends who work in the business and yes, they report that sales are up, mostly on used motor homes and travel trailers and people are spending more money on repairs and upgrading items as well.

But, it's not so much for recreational purposes. The majority of the customers they are seeing are buying because they've lost their homes to foreclosure or walked away from mortgages, after becoming unemployed or can no longer afford to pay rent and rising utility costs while also seeing to other basics.

The average RV space, including utilities, averages out to about $300/month in this area and most places are running specials just to get people in because the park owners have mortgages and bills to pay also.

The other thing is something I've recommended myself.....people are buying them on a "just in case" basis as well. As a safety net should they lose their job and/or home and for evacuation purposes should civil unrest break out in their area.

Plus, people are looking for less expensive alternatives in terms of being able to get away for the weekend and vacations too.

I still hold to that recommendation too. None of us ever knows what could happen which would require us to leave our homes.....whether it be unemployment, storms, wild fires, and yes, even civil unrest which isn't really such an impossibility anymore given the current state of affairs in this country right now.

If anyone can at all manage to do so, it's probably one of the wisest investments I think anyone can make.

It's better to have it and never have to use it in a worst case scenario, then not have it and one day need it.

Post deleted by mod!

Originally Posted by azwreath

Our area being the big one for RV sales/repairs, etc. we have a few friends who work in the business and yes, they report that sales are up, mostly on used motor homes and travel trailers and people are spending more money on repairs and upgrading items as well.

But, it's not so much for recreational purposes. The majority of the customers they are seeing are buying because they've lost their homes to foreclosure or walked away from mortgages, after becoming unemployed or can no longer afford to pay rent and rising utility costs while also seeing to other basics.

The average RV space, including utilities, averages out to about $300/month in this area and most places are running specials just to get people in because the park owners have mortgages and bills to pay also.

The other thing is something I've recommended myself.....people are buying them on a "just in case" basis as well. As a safety net should they lose their job and/or home and for evacuation purposes should civil unrest break out in their area.

Plus, people are looking for less expensive alternatives in terms of being able to get away for the weekend and vacations too.

I still hold to that recommendation too. None of us ever knows what could happen which would require us to leave our homes.....whether it be unemployment, storms, wild fires, and yes, even civil unrest which isn't really such an impossibility anymore given the current state of affairs in this country right now.

If anyone can at all manage to do so, it's probably one of the wisest investments I think anyone can make.

It's better to have it and never have to use it in a worst case scenario, then not have it and one day need it.

I think you nailed what's driving the market uptick in RV sales, azwreath. We have some neighbors who bought an RV and put their condo on the market. They live fulltime in the RV -- and in Arizona, no less.

In the event of civil unrest most real Americans will stand and defend what is theirs and not run away like people from some other countries do.

Some of those RVs are fabulous. It isn't a matter so much of people running away, JD2, but a choice for some retirees to realize their travel dreams, and a cheaper option for some who have gone through foreclosure and are living on limited income.
There are more and more people living in RVs, just as there are more and more people living on boats. Not running away, but toning down their lives as their budget allows.

Originally Posted by vortex

Some of those RVs are fabulous. It isn't a matter so much of people running away, JD2, but a choice for some retirees to realize their travel dreams, and a cheaper option for some who have gone through foreclosure and are living on limited income.
There are more and more people living in RVs, just as there are more and more people living on boats. Not running away, but toning down their lives as their budget allows.

My comment:
"In the event of civil unrest most real Americans will stand and defend what is theirs and not run away like people from some other countries do."
was in regard to this comment about leaving home because of civil unrest.

I still hold to that recommendation too. None of us ever knows what could happen which would require us to leave our homes.....whether it be unemployment, storms, wild fires, and yes, even civil unrest which isn't really such an impossibility anymore given the current state of affairs in this country right now.

I will buy the biggest, best, RV on the market.

Just as soon as the people over at LOTTO pick the right numbers.

Living on a barrier island in Fla. on the Gulf, I had to leave home with the dog and cat a couple times when Hurricanes Charley and Wilma hit. And you had to leave quickly as once winds hit 45 mph. the bridge was closed to all traffic. After Charley the power was out for two weeks (and never, ever open your fridge after that kind of power outage), the lift stations were not working for sewer, the town administration had set up shop off island, and the National Guard was at the foot of the bridge to make sure any entrance to the island was for residents only. Here I am driving off island in the car after the fire department came by with loudspeakers and gave us all reverse 911 calls, while the dog is having a great time barking at the cat in the carrier, and I am worried I packed up all important documents and everything else. I was lucky to have a place to stay during both, but if I hadn't I would have been living in the car.
Yep, will do my best to defend my home during civil unrest, but you don't often argue with Mother Nature and win.

[quote="JohnDoe2"]


In the event of civil unrest most real Americans will stand and defend what is theirs and not run away like people from some other countries do




In this area JD2, there are alot of retirees and then there are people like us who have young kids to worry about.....

We also operate a small sanctuary for special needs animals.

This county is saturated with gangs, cartels, and untold numbers of illegal aliens being whipoped into a frenzy by their radical activists for the past two years, not to mention various neo-nazi groups, a high meth addicted population and any number of other people who would not hesitate for a second to engage in violence, looting, and pillaging

Granted, we are more than capable of defending ourselves and what's ours. We're also not known as a family which is easily scared or runs away from things.

But, if anything were to happen in Maricopa County in terms of civil unrest, we would most definitely hitch up the travel trailer to the pickup, jump in the van and the car, and head for safer ground in the less populated northern part of the state.

Cowardice and running away has nothing to do with it.....protecting our children and the lives of the animals we foster does. Also, if there were a threat, why would we expose the kids to that kind of fear and disturbance if it could at all be avoided? I would also not expect retirees, the elderly or infirm to remain here as sitting ducks either.

Homes and belongings can always be replaced.....provided one lives to enjoy them.

Originally Posted by azwreath

Originally Posted by JohnDoe2

In the event of civil unrest most real Americans will stand and defend what is theirs and not run away like people from some other countries do




In this area JD2, there are alot of retirees and then there are people like us who have young kids to worry about.....

We also operate a small sanctuary for special needs animals.

This county is saturated with gangs, cartels, and untold numbers of illegal aliens being whipoped into a frenzy by their radical activists for the past two years, not to mention various neo-nazi groups, a high meth addicted population and any number of other people who would not hesitate for a second to engage in violence, looting, and pillaging

Granted, we are more than capable of defending ourselves and what's ours. We're also not known as a family which is easily scared or runs away from things.

But, if anything were to happen in Maricopa County in terms of civil unrest, we would most definitely hitch up the travel trailer to the pickup, jump in the van and the car, and head for safer ground in the less populated northern part of the state.

Cowardice and running away has nothing to do with it.....protecting our children and the lives of the animals we foster does. Also, if there were a threat, why would we expose the kids to that kind of fear and disturbance if it could at all be avoided? I would also not expect retirees, the elderly or infirm to remain here as sitting ducks either.

Homes and belongings can always be replaced.....provided one lives to enjoy them.

This makes sense to me Az. I live in an area prone to wildfires so I'm always prepared to bug out. If I see smoke a few miles out I stay put. But if it's blazing down the hillside at me I'm gone. This is the same reaction I would have to civil unrest. I'm not about to stand on my front porch and try to face down fifty armed combatants by myself. I'm going to bug out and regroup. On the other hand I have faced down more than one smuggler on my property.
The absence of fear isn't courage, it's stupidity. Common sense should rule in any of these events.