How will the sale of my RV be affected by all the bad news in the economy? Many critics say that the slow down in the economy and the rapid rise in foreclosures is going to bring down the prices of RVs.
In the words of Zig Ziglar, the media has “accurately predicted 42 of the last three recessions.” News media told us the price of oil every hour of everyday when it way going up, but how often did they tell you the price of oil when it was going down? The truth is, in this economy RV prices will not be affected much. Used RV prices may actually improve and here is a few reasons why.
1) First, the economic slow down has really cut into the manufacturing of new RVs. Less new RVs are available to meet the by and demands of an increasing population.
2) A lot of people who can afford it are choosing not to trade up their used RVs, but keep them instead. This means there are less used RVs on the market.
3) Dealers are selling less and so are the manufactures. In order to compensate, they both ultimately need to raise their margins and this means higher prices. Plus now that there are less competitors in the RV manufacturing business which also makes it easier to raise prices.
4) Interest rates are at an all time low. People can buy more RV with a lower monthly payment. And also that more people than ever can afford an RV.
The truth is there are always a few desperate sellers, both in a good economy and a bad one. These sellers are desperate enough to take less than the book value, but these individuals are far from the majority and only have a small impact on the actual average sales values. For these reasons, we predict the economy will have virtually little negative impact on RV sales.