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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What's In Store For RVers In 2022?

Above, The Beast at Deer Creek Valley RV Park in Topeka, Kansas. Photo by Armand Vaquer.

2021 has been a mixed bag of a year.

In regards to the pandemic, it seems that each time we take two steps forward, we end up one step back when it comes to personal freedoms. While some politicians love to not let a good crisis go to waste, there has been blowback from people telling them enough is enough.

What does 2022 have in store? That's anyone's guess. But on the RVing front, Mike Gast at RV Travel looked into his crystal ball and makes some predictions.

He starts off with:

I know we’ve just arrived in December 2021, but with the weirdness of the past 12 months, it’s not too early to roll out the crystal ball and try to start making educated guesses as to what may be in store for RVers in 2022.

What got me thinking along those lines was the grand opening of a new RV park in Avila, California. It looks like a beautiful place, especially its spectacular ocean views. But we heard from at least one RVTravel.com reader who wasn’t too happy with the rates the new park was charging. There are, of course, a lot of factors in their rates, but they appear to be in the $98- to $135-a-night range. That doesn’t seem out of line with the rest of the parks in that region, but it sure seemed high to at least one reader.

The new 115-site Flying Flags Avila Beach RV Resort is just one of the first of what will likely soon be a flood of new and expanded RV parks in coming years. New campgrounds and new park owners will likely bring new rate structures along for the ride.

But rates are only part of the picture as we approach 2022. Here’s a look at a few things to consider for the future. It’s likely not a totally comprehensive list, and my predictions could be way off base. I’d like to hear what you have to say, so be sure to give us your thoughts in the comments section at the end of the story.

To read more, go here.