RV Prices May be Stabilizing

[dale farley]

On January 6, 2010, the National Sales Manager of Capital RV Sales sent the following notice to its potential customers. Maybe this is the beginning of price stabilization? May or may not have any impact on bus conversion prices?


The New Nada Book is out & good news for RV Owners this is the first time in many years the prices didn’t drop by 5-8% they held this last quarter!!!!

[merle&louise]

I have noticed that Newell has actually raised their prices by cancelling the price reductions on their website. Things are looking up!

[Jon Wehrenberg]

Strictly a guess, I don't think our used coach prices will rise, but I see depreciation being non-existent for a while. If I'm wrong and prices do rise that is good.

[phorner]

The way I see it, the only way for current prices to rise at all will be if demand somehow begins to substantially exceed supply.

And there's a lot of supply....

[garyde]

I am not feeling the Love. Marathon is asking $2 mil for 2010's and used Coaches 3 or 4 years old going for $700,000 to $1 Mil.
Not much selling for that, but retail prices have not adjusted.
Owner's selling their own Coaches probably are the only ones discounting significantly.
It will be interesting to see the landscape a year from now.

[Jon Wehrenberg]

Actually I think the market pricing reflects a number of issues, all of which combine to create a skewed picture.

There are people who are going to afford a $2 Mil coach no matter what the economic climate. As the finacial crisis ebbs more of them will be back into the market.

The late model used coaches are likely to retain a greater portion of their value because they can be financed. So the buyers of those coaches can also be more active in the market. That segment may actually include folks that are more likely buyers of older coaches, but the lack of financing pushed them into newer ones.

The older coaches are disproportionately cheap because the number of buyers that do not need financing are few and far between, dealers do not want to inventory something that cannot be financed, so to sell a coach it ends up being the individual owner mostly, and since the population of cash buyers is relatively small they have no choice but to drop the price to unrealistic levels.

If this financing situation does not change in the next few years people who have been wanting the XLII style coaches with slides are going to see some real bargains.