The RV Perfect Storm

[Keith55]

So much has already been said about COVID RVers likely trading in their RV's as life returns to normal.

What hasn't been addressed is how rising interest rates will impact purchase of new RV's.

For a 20 year loan, each $100,000 represents a $633 payment at 4.5% interest.

That same loan at 7.5% interest is an $806 payment.

Diesel/Gas up, inflation, interest up, COVID RV's, people who experienced packed CG's, uncertainty.

It sounds like a storm is brewing!

[propchef]

1) Buy used
2) Pay cash
3) Enjoy

[jimcumminsw]

Who really cares as long as the buyer is willing to spend the money to purchase what he/she wants than it is ok.

Just look at the housing market in the US and the new/use car prices in the marketplace. I have read and know were buyers of some makes of new cars are paying a premium over the MSRP. In fact, my neighbor paid $5k over MSRP for his new Hyundai Santa FE car. His money his choice.

[Keith55]

Originally Posted by jimcumminsw

Who really cares as long as the buyer is willing to spend the money to purchase what he/she wants than it is ok.

Just look at the housing market in the US and the new/use car prices in the marketplace. I have read and know were buyers of some makes of new cars are paying a premium over the MSRP. In fact, my neighbor paid $5k over MSRP for his new Hyundai Santa FE car. His money his choice.

I think the issue is both that many will be unwilling or unable to spend the money.

And to your point about your neighbor, he could have gotten a much nicer vehicle for the same spend. Also, I am assuming he is not an endless source of money. At some point that $5000 does not get spent on something else. Perhaps he would have purchased a computer, bicycle and something for his home with that $5000. Or he could have used it as part of a down on a motorhome.

[Cumminsfan]

1.7 jobs per person.
Wages are up.
Inflation's not hurting everyone the same way.
Yes fuels up but it will go down like it always does.
CG's are fuller but have been for several years around me.
I really don't see doom and gloom for the RV world.
There's been record sales for the last 5 years so even with a 25% dropout rate there's still so many RV'ers left to keep CG's full and RV dealers happy.

[twogypsies]

Originally Posted by propchef

1) Buy used
2) Pay cash
3) Enjoy

Exactly! Don't get into debt with a RV.

[glwinger]

There are many articles about taking a 20 year 'mortgage' on an RV. Many, though not all, do not last 20 years, or people do not keep them that long.
They are then stuck with payments for something they no longer have or use. If they do sell it, they are still behind or if very lucky, break even.
You lose about 20% just driving it off the lot.
I have a neighbor who buys a new truck every 2-3 years. Technically he's still paying on the original one.

[paul65k]

Originally Posted by glwinger

There are many articles about taking a 20 year 'mortgage' on an RV. Many, though not all, do not last 20 years, or people do not keep them that long.
They are then stuck with payments for something they no longer have or use. If they do sell it, they are still behind or if very lucky, break even.
You lose about 20% just driving it off the lot.
I have a neighbor who buys a new truck every 2-3 years. Technically he's still paying on the original one.

EXACTLY!!

Good debt is anytime you borrow for something that can make you $$

• Real Estate
• Work Equipment/Machinery
• Investments (Margin)
• Education (with exceptions)

Bad debt is pretty much everything else, and the WORST debt is debt to purchase a depreciating asset............ Don't take out "Bad Debt"

[2cyber71]

Originally Posted by Keith55

So much has already been said about COVID RVers likely trading in their RV's as life returns to normal.

What hasn't been addressed is how rising interest rates will impact purchase of new RV's.

For a 20 year loan, each $100,000 represents a $633 payment at 4.5% interest.

That same loan at 7.5% interest is an $806 payment.

Diesel/Gas up, inflation, interest up, COVID RV's, people who experienced packed CG's, uncertainty.

It sounds like a storm is brewing!

As rates go up prices go down, RVs are mucho interest rate sensitive.
Like boats and homes. I would be more worried about being able to afford even a lower price RV. Average workers income can not keep up.

[Ldubs]

I guess I'm one of those covid RVers. We bought our TT because we couldn't travel. Enjoyed the heck out of it. Now that things are opening up, we will be putting it on the market. It is a small TT. Not a big ticket item like a MH.

Funny thing. We were careful for two years. Finally excited about taking an eleven day trip to Madrid starting March 28. Then wham, we caught COVID over there. We ended up having to extend the trip another 6 days before we were cleared to return to America. Literally got home this past Wed.

Anyway, compared to trips monthly, with our current travel plans and the boat, I doubt we will be able to use the TT more than once or twice a year. I hate to see it just sit there, so on the block she goes.

[Dutch Star Don]

A bigger question......why do some need to make posts about doom and gloom. You can't spend other people's money, so don't worry about what others will do or spend. Just enjoy your RV while your still healthy and get out and see the country.

We just got back from a week long trip, booked a trip spending most of June visiting Washington and Oregon, a cruise in July and back out camping in August. Life is going by faster and faster everyday. We're trying to see as much as we can before we physically can't.

[Dakotah]

We’ve owned campers for 30 years. Upgraded to a new 5th wheel last year. This has never been a cheap hobby. We just love traveling and camping. We aren’t rich, but we manage our finances and live within our means. Those who didn’t really think it through before purchasing have learned a hard lesson.

[Cmftblynumb]

“A bigger question......why do some need to make posts about doom and gloom. You can't spend other people's money, so don't worry about what others will do or spend. Just enjoy your RV while your still healthy and get out and see the country.

We just got back from a week long trip, booked a trip spending most of June visiting Washington and Oregon, a cruise in July and back out camping in August. Life is going by faster and faster everyday. We're trying to see as much as we can before we physically can't.“

Man I bet Dutch Star Don would give a heck of a half time speech!!

[Ldubs]

Originally Posted by Dakotah

We’ve owned campers for 30 years. Upgraded to a new 5th wheel last year. This has never been a cheap hobby. We just love traveling and camping. We aren’t rich, but we manage our finances and live within our means. Those who didn’t really think it through before purchasing have learned a hard lesson.

I think for me it would be a casual hobby. For a lot of folks on this forum it is more a lifestyle.

What is my point? Well, to be honest I'm not really sure. Haha