The buyers market

[StonedPanther]

Comparing the predictions in THIS ARTICLE to the chart below, it looks like RV shipments and sales are going back almost to the numbers during the 08 recession and right around the numbers from 23 years ago. Its surely transitioning to a buyers market, and those who purchased at the inflated prices the last few years are going to be in a world of poop. On a side note one of Forest Rivers largest divisions, Rockwood/Flagstaff, is shutting down all production for the entire month of July and the talk on the street is plenty of others will be following suit.

[restlessways]

The economy remains incredibly overheated. Until we see a real economic slowdown, we won't see the major price corrections that are probably on the horizon. Right now, RV prices are the worst in history when you account for interest rates, which have shot the moon. And rates will be going up more.

I have readjusted my thinking insofar as the truck camper I had been planning on purchasing new. After watching the msrp rocket almost 30% higher, I have no interest anymore. And I'm a cash buyer, so the rates don't matter.

I tend to use things a long time after I purchase them. I bought my 5th wheel from the original owner in like new condition. I have used it for 10 years now, and it seems like it could go another 20 years with good maintenance. It is a well-built unit and I've had few problems other than the fridge.

If there is a full-scale meltdown in RV prices, I'll probably buy a gently used one for pennies.

[NamMedevac_70]

For at least two years now new dealer lots in Sacramento, Reno, elsewhere have been packed with new RVs of all types. There is a long lag time between demand drop off and manufacturers cutting back on production. Yup.

[goducks10]

Bionic Man wrote:
I’m still waiting for folks to go back to their pre-Covid past times. It’s still incredibly difficult to get reservations at any of the state or national campgrounds that we frequent.

I think for several reasons we won't see a slow down in CG reservations.
One is I bet a lot of pre Covid motel'ers are finding RVing more fun.
2nd I bet many are stuck with an overpriced RV thats been depreciating at a good rate lately. Many are stuck with what they have.

[mlts22]

In past recessions, financing places did low, if not 0.0 interest rate financing just to get people to buy the vehicles. If this keeps up, it is only a matter of time before these specials come back.

[Bionic_Man]

I’d love to see interest rates below 3% on just about anything these days. Just isn’t going to happen unless it’s highly subsidized somehow. My credit score is about 800 and new vehicle interest rates are in the 7% range for me.

My first house in the late 90s was about the same interest rate. So it isn’t unusual. We just got spoiled the last several years.

[ford_truck_guy]

Quote - could get me @ 3.00% on the financing, but I'm not biting. I dont know who's paying these 8-9% rates on new vehicles? People with bad credit or fools? "

Out of all my vehicles and RV, I have 1 payment book left, that the 2020 F350... That was 48 month at 0% special so I did that and have 3 payment left

If buying NEW, I would NOT do more than 1.9 or 2.9 depending on circumstances... But that is only for me and my financial situation.

[Grit_dog]

Anecdotal evidence, but I will be renting a camper for our summer trip this year.
Less than a month away, trip will be in the height of the summer, and there’s plenty of availability it seems and most all the campers are Covid purchases. ‘21 and ‘22 models.
Just TTs and THs, on just one website, there’s dozens available in the Idaho panhandle. And if the website is accurate, seems like most of the campers are only reserved very sporadically.
Also no problem getting another site in n short notice at a very popular campground, on Pendo.

[StonedPanther]

Grit dog wrote:
^What SP said. The Fed rate can do what it does but dealers/mfgs, whomever is holding the notes can also lower rates as incentives. Happens every time. Just hasn’t happened in a while.

Yesterday afternoon was kicking tires at a local Chevy dealer on a 2024 Silverado 3500 SRW LTZ. They were willing to drop from sticker of $83,000 and change to $76000. The finance guy was certain if I financed @ $50K after trade in for 72 months, he could get me @ 3.00% on the financing, but I'm not biting. I dont know who's paying these 8-9% rates on new vehicles? People with bad credit or fools?

[Grit_dog]

^What SP said. The Fed rate can do what it does but dealers/mfgs, whomever is holding the notes can also lower rates as incentives. Happens every time. Just hasn’t happened in a while.
Ida thought RV prices would be further in the gutter by now, honestly.
But vehicles prices are still a bit of a different story. While they “should” be sliding further down by now, imo. However the 2+ years of vehicle shortages are still propping up the market.

[monkey44]

StonePanther ... Plenty of equity in truck - 2022 GMC, no loan - but our bank keeps wanting to refi or give vehicle loans at what is higher interest rates, and home refi or equity loans too. We kinda laugh when the offer just increases the interest rate, and if anyone does it, all it accomplishes is the bank gets more interest on the same loan it holds now. If we refi the house, for example, our mortgage payment would go up $460 a month, and we would get no cash out and we'd pay all the refi costs n addition.

We're just thinking it's the banks and finance companies trying to exclude the low interest rates on homes and vehicles that it funded with the low rates the past few years ... banks don't like getting 'stuck' with home loans at 3.5% for thirty years, nor vehicle loans at five or six years at one or two percent.

[StonedPanther]

dodge guy wrote:
Would be nice if prices start dropping. But the interest rates are now ridiculous. My son is looking at newer cars and the rate with good-excellent credit is 7-8%. I have 4.5 on my Ram I bought 2 years ago!
So even if prices drop, the banks will take the difference.

Those rates are tied to the prime rate, which is set not by banks but the Fed, and don't expect that to drop anytime soon. What will drop is the rate to borrow for new vehicles or Rv's. Just need for the sales numbers to tank a little more.

Tell your son to buy a Kia Soul, 2.9% for 48 months. Honda is offering 3.9% across the board for 48 months, 4.9% for 60.

Ford offers 3.9% for 60 on a lot of models. GM has 1.9% for 36 months but with the prices of some models good luck. $40K financed for 36 @ 1.9 is only @ $1150.00 per month ROFLMAO. Try it with a $92K Pickup for $2630.00 per month. Ouch.

monkey44 wrote:
and, wants us to refi our truck for 7%-8%, and we own it, no loan. We say 'No thanks' and smile.

Huh? Refinance a paid off truck? Sort of like a home equity loan backed up by something with no equity? Sounds more like a personal loan with the truck as collateral?

Bionic Man wrote:
I’m still waiting for folks to go back to their pre-Covid past times. It’s still incredibly difficult to get reservations at any of the state or national campgrounds that we frequent.

Keep waiting..............Pre Covid past times? 1956?...From what I can tell it was incredibly difficult since way prior to Covid based on what one reads on some of these boards.

[Bionic_Man]

I’m still waiting for folks to go back to their pre-Covid past times. It’s still incredibly difficult to get reservations at any of the state or national campgrounds that we frequent.

[monkey44]

We agree with dodge guy ... the banks make up the difference in interest rates rising as prices drop. Our bank continuously asks us to refi our home (We have a 3.5% rate) and can give us a new mortgage a 5.5% ... and, wants us to refi our truck for 7%-8%, and we own it, no loan. We say 'No thanks' and smile.

[dodge_guy]

Would be nice if prices start dropping. But the interest rates are now ridiculous. My son is looking at newer cars and the rate with good-excellent credit is 7-8%. I have 4.5 on my Ram I bought 2 years ago!
So even if prices drop, the banks will take the difference.