It’s no secret that RV sales have plummeted in the last year as the recession has deepened and credit has dried up for buyers of recreational vehicles.
But over the past couple of months, RV dealers have begun to experience something unexpected — an uptick in the number of savvy buyers drawn to their sales lots by steep discounts. Like businesses looking to lure customers, dealers are cutting prices to move their products. Industry experts say that makes this the best time in 30 years to buy an RV.
“We’re having people coming in saying ‘make me a deal I can’t refuse,’” said Michael Jacque, president of Morgan Hill, Calif.-based Alpine RV, who said buyers can expect price cuts of 15 to 20 percent across the board. “If you have the means, without a doubt this is the best time to buy an RV.”
Sales of RVs, from economical towables to luxurious land-yachts dropped almost 41 percent in California between November 2008 and the previous year, according to Statistical Surveys, which tracks RV retail sales. Nationally, sales were down 28 percent during that same time period.
Slashed prices and fiscal incentives, including the recently signed $789 billion federal economic stimulus package that includes tax breaks for people buying RVs, are combining to create one of the best buyers’ markets in decades, RV dealers say.
Jacque, who’s been in the business for 30 years, said this recession is the worst hit he’s seen the industry take. However, with sales and traffic on the rise, hope and optimism are starting to creep back in. He expects business to get better in the following months and possibly peak in May — something Mike Nohr, director of the May 15-24 Manufacturers’ RV and Boat Show in nearby Pleasanton, is banking on.
Nohr originally scheduled his Pleasanton-based show for early January but postponed it to the last two weeks in May in the hopes of catching an upsurge in business. “The industry is hurting, yet we’re hearing more and more of our vendors saying people are interested in getting into an RV because they realize this is the time to get a deal,” said Nohr.
WHEN HE MADE THE DECISION to change the dates of his show, which has been a staple at the Alameda County Fairgrounds for two decades, Nohr knew it was a gamble. But with nearly 30 dealers planning to attend, he believes he’ll be holding the right cards come May.
One of those dealers is Henry Flores, general manager of Los Banos-based Toscano RV. Flores believes the industry has already hit rock bottom and things are beginning to look up. While his sales haven’t surged yet, he’s seen more traffic on his lot than in previous months. The buyers perusing his wares are hip to the situation the industry is in and willing to capitalize on it, too, he said.
“They know it is the time to buy. They know they can buy something reasonable and get a deal,” Flores said. “Two to three years ago, no way. The market was hot. But now, people know they’re gonna be able to steal it. They know.” –Erin Simpson
This entry was posted on Friday, February 27th, 2009 at 2:15 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.