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 > High Gas + Tough Economy = Super RV Deals?

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BradW

Flat Rock, Alabama

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Posted: 08/29/08 12:56pm Link  |  Quote  |  Print  |  Notify Moderator

Anyone seeing any super deals on new truck campers during this extreme lull in TC sales? I haven’t seen any big discounts or manufacturer rebates. Looks like the manufacturers would be trying something to move some units and keep the cash flow going.

Brad


Caution: Possibel defective spelling above; spell checker is DOA.
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Karic

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Posted: 08/29/08 02:07pm Link  |  Quote  |  Print  |  Notify Moderator

There was no indication of super deals or reduced pricing on any TC's on the numerous lots we visited last month. New units still priced in the $30-$40K range and used stuff still demanding high dollars as well.

In fact, aside from Bob Mehrer of Snow River, not one dealer mentioned the fact that the industry was hurting and that parent companies were closing their doors.

One would think that the pricing would reflect what's happening in the industry, but it seemed to be business as usual for the dealers. I understand they need to make a profit to stay in business, however it'll be interesting to see how many of the new units, now orphans, celebrate birthdays sitting on the sales lots.


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woodhog

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Posted: 08/29/08 02:26pm Link  |  Quote  |  Print  |  Notify Moderator

I have seen no reductions beyond the usual 15 percent or so off the sticker prices.

Some units I have been watching have been priced the same all summer.

I dont think they expect to sell many units, this quote from the Snowriver president pretty well sums it up:

Quote:

Those dealers that did sell Snowriver campers during this period were being cautious and not wanting to replace these units until spring


Even the dealers have no faith in their own industry and will not buy.

One would think prices must come down in a free market to try and sell something no one will buy.

It shows the stubborn attitude of a sales only based business that had it their own way for a long time.

d3500ram

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Posted: 08/29/08 02:38pm Link  |  Quote  |  Print  |  Notify Moderator

As much as I do not like the downturn in the economy and the high fuel prices... I do hope that I can find a deal out there. There are a lot of TC's on CL... I would imagine that dealers at some point will have to drop the prices to move their inventory and compete with the glutony on the used market.


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petekerwien

Camano Island, WA

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Posted: 08/29/08 02:55pm Link  |  Quote  |  Print  |  Notify Moderator

I know you asked about TC's, but in the Seattle area Motorhome prices are falling fast.

david_42

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Posted: 08/29/08 03:01pm Link  |  Quote  |  Print  |  Notify Moderator

TC's are a different beast from motorhomes; lower margins and lower prices to start with, make it relatively cheap to hold them on the lot and there isn't much room to discount.

Plus, people already own their trucks and know what their fuel use looks like, so that isn't a big factor.

cdl2

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Posted: 08/29/08 03:05pm Link  |  Quote  |  Print  |  Notify Moderator

We were in Elkhart, IN last weekend. The place looked like a ghost town, & lots of new stuff sitting around.
Earlier we had a rv salesman tell us that rv sales were going to be going through the roof because of the baby boomers. He dosen't work there anymore.
Had a local Lance dealer go out of buisness too. No loss there, they weren't very nice.


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silversand

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Posted: 08/29/08 05:18pm Link  |  Quote  |  Print  |  Notify Moderator

...I'm not supposed to be on-line tonight, but here goes:

No RV manufacturer will discount their production for the simple reason that their units are already priced too close to the wire (i.e. competitively in the market already). Some direct-to-customer TC manufacturers may have 10~15% to wiggle direct to customer, but the big makers shipping to dealers have the dealer cut, and manufacturer cost to cover.

Perhaps we'll see the dealer cut out nearly entirely from the multi-level? If, for example, lance were to bypass their dealer network and sell direct to customer (hardly likely Lance would literally buy out a dealer network like in the automotive industry), Lance could afford to give the end-user perhaps 20~30% off suggested (or, MSRP) list?

For the real deals, look for bankruptcy sales contracted out by bankruptcy attorneys. In this scenario no one is trying to make a profit. The bankruptcy sale of a manufacturer's finished stock may go for 20 cents on the dollar.

The reason why used unit pricing seems high (IMO) is that too many of them are upside-down vis financing. No one in this position will sell their RV at a loss, thus the seemingly high used asking prices out there today.

Same with dealer used stock. Dealer, for example, buys for $10 and is asking $14. The $10 would represent the evaluated price of the used camper, thus dealer would never sell for $10 or less (unless a forced bankruptcy sale).

There are a few good deals out there (we've been looking), but others too are competing for the same few-and-far-between "deals", the 1 gem in 300 units for sale, and unless you have your Learjet 23 standing by to zoom 2000/3000 miles to consummate the deal (unrealistic, of course: it's just a truck camper!), someone geographically nearer to seller will beat you to it and will nail the deal 1st.

Silver-

* This post was edited 08/29/08 05:28pm by silversand *


Silver
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Horseplay

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Posted: 08/29/08 07:47pm Link  |  Quote  |  Print  |  Notify Moderator

I'm gonna tell on Silversand!





jimmyfred

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Posted: 08/29/08 07:48pm Link  |  Quote  |  Print  |  Notify Moderator

...........The truck camper dealerships have too respond to the same economic downturn as everyone else . They are NOT immune ; if they have their inventory floor panned\financed like most Dships , the intertest rates will eventually consume any profit that they hoped too realize by keeping their prices abnormally high . They will all receive their Come Uppance at some point in the business cycle . , jf


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