Factory rebates

[Ebwhite]

With the lower consumer demand on luxury items due to the Chinese coronavirus and the 2021’s coming out soon, are we seeing any factory rebates offered by Newmar or coming soon to push inventory? These are special incentives not just dealer price breaks etc.

[GCSuper]

Originally Posted by Ebwhite

With the lower consumer demand on luxury items due to the Chinese coronavirus and the 2021’s coming out soon, are we seeing any factory rebates offered by Newmar or coming soon to push inventory? These are special incentives not just dealer price breaks etc.

Our dealer had a record March and when we spoke mid April sales were brisk also. Maybe certain brands or models might offer rebates.
Seems like I read that CW was having above average sales also.

[Ebwhite]

Originally Posted by GCSuper

Our dealer had a record March and when we spoke mid April sales were brisk also. Maybe certain brands or models might offer rebates.

Seems like I read that CW was having above average sales also.

Keep in mind, an amount of March sales are residual from previous factory orders placed by buyers. Certain markets will still have sales but lenders have really tightened up

[Rev. Roy]

The RV industry isn't like the automotive industry. Once a dealer takes delivery, it's theirs. That means the manufacturer got their money so they don't have vested interest. The automotive industry is closer to a consignment than a purchase. The manufacturer only gets paid in full after the sale. Dealers offering a factory rebates is a sales gimmick. They'll do that because a sitting RV cost them $ and effects available cash for buying new ones.

[bsla11]

Just the opposite. We were at a dealer looking at ordering a New Aire and price went up 3K since our quote from last week. Newmar states price increase due to use of Villa furniture instead of FlexSteel. Flexsteel abruptly exited the RV furniture market.

https://www.woodworkingnetwork.com/n...ers-two-plants

[Rev. Roy]

Originally Posted by bsla11

Just the opposite. We were at a dealer looking at ordering a New Aire and price went up 3K since our quote from last week. Newmar states price increase due to use of Villa furniture instead of FlexSteel. Flexsteel abruptly exited the RV furniture market.

https://www.woodworkingnetwork.com/n...ers-two-plants

That's because you were ordering it not buying one on a lot. Even in the auto industry, most of times the rebates are on "dealer" stock that you take delivery of before a certain date.

[sgwyble]

The video from NIRVC talks about an expected boom in the RV industry as the way people travel changes. If people still want to travel and are concerned about airplanes and hotels, RVs are the logical choice. Early indicators show that he might be right.
You will still see normal discounting on the 2020 as 2021 models start becoming available.

[Rev. Roy]

Originally Posted by sgwyble

The video from NIRVC talks about an expected boom in the RV industry as the way people travel changes. If people still want to travel and are concerned about airplanes and hotels, RVs are the logical choice. Early indicators show that he might be right.
You will still see normal discounting on the 2020 as 2021 models start becoming available.

Matt from YouTube Matt's RV review said yesterday that he sold 25 motorhomes in the past 40 days. He works for General RV in Florida.

[Mr.Goodbar]

Originally Posted by Rev. Roy

The RV industry isn't like the automotive industry. Once a dealer takes delivery, it's theirs.

Not true of automotive industry. I worked 12 years in IT for Saturn supporting the dealer accounting systems. At least for Saturn, when the car was shipped from the factory, the dealer's floorplan account was charged on the date the car arrived at the dealer. The dealer floorplan account is like a short-term loan and the dealer "owns" the car. The risk is not selling the car quickly enough to recoup the money paid to the factory. The timing may be different with other car companies, but my point is that the dealer owns the inventory on his lot, not the factory.