Well, Camping isn’t going anywhere. Though COVID may still linger around here and there, it still has one positive effect on camping. Being one of the safest outdoor things you can do. COVID also had a side effect we all learned about, and that is its made it VERY hard to get in camping just about anywhere.
So we thought we would fill you in on what this means to the industry, and what it means to you for 2023. 2019 Manufacturers had very strong numbers. It was getting hard to get in places. Then COVID hit over the winter of 2019 to spring of 2020. Though we had to fight with government to get our campgrounds opened, we finally did. We all learned how to navigate new uncharted territories together. Then the boom for the manufacturers came.
The RV manufacturers could not keep up with the new demand. RVs were tough to find. If you ordered one, you waited forever. If you were lucky enough to find one, interest rates were great, and dealers played ball. Now, that is all about to be undone.
If you have a used camper, the market is getting saturated with new and used campers. So much so that those premiums you were paying are now gone. Sale prices are thousands less. Dealers are trying like crazy to get rid of new inventory. Used inventory is growing rapidly. So the market is now contracting back to the insane levels of 2019. The unfortunate part is interest rates are high.
Our advice is to shop around at banks for the best rates. Don’t finance anything at a very long term. Why? Lets say you finance a $30,000 camper at 6.5% for ten years. Even if rates go back down under a new administration, you wont be able to refinance easily. The reason is, at ten year terms, you wont really pay down any principal and your book value will be way to low, your balance will be high, and you will be stuck. The way to avoid this scenario is to put a large down payment on the camper. And OR, short finance terms with a higher payment for a while.
Either way, think about the long term. Campers don’t hold value. Here is a neat article we found by following the RVIA industry website. It shows where the numbers are headed for manufacturers. It’s a great way to gage where things are headed.