RV Inventories Up, Prices Down

Above, La Mesa RV dealership in San Diego. Photo by Armand Vaquer.

Just before and during the pandemic, it was a dealers' market for RV dealers. There was high demand for new RVs at the time of short supply.

Now, it appears to be the other way around. Dealers have full lots but demand has tapered off. It is now becoming a buyers' market.

According to Mike Gast at RV Travel:

There is more evidence of late that the shortage of new RVs is beginning to shift. That’s good news for consumers ready to buy but could spell trouble for RV dealers and manufacturers.

The Wall Street Journal recently published a story that said the meteoric rise in stock prices may be a memory for Thor Industries as well as Camping World Holdings. After Thor stock doubled in value and Camping World stock tripled in value in 2020 and 2021, shares in both companies have dropped an average of 30% in 2022.

Experts point to a plethora of reasons for the declines, including general economic malaise, rising interest rates, climbing fuel prices, and the recovery of the supply chains. Less attractive financing suddenly makes cruise vacations and trips to European destinations look like a bargain.

RV dealers, who suffered from low-to-no inventory for much of the early pandemic, now find themselves with overflowing lots at a very inconvenient time. A recent survey by the firm Truist found that nearly 70% of RV dealers claimed demand for new rigs has slowed “noticeably.” About 40% of the dealers surveyed said they expected sales volumes to decline, compared to 5% when they were surveyed in February. 

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