Retail RV sales continue to dive

[Neal]

https://www.rvtravel.com/retail-rv-sales-continue-dive-types-sinking/

 

[Texas Clodhopper]

We have driven by many dealers' lots while roaming around in NM, CO, UT, and ID, and trust me, they have plenty of inventory.

 

[Joe Hogan]

This cycle is very typical for the industry, especially after the pandemic and subsequent sales surge. Over the years there have been many cycles. Would not read too much into it.

It is a very tough business.

A rosy example of trends:

RV Economic 10-Year Cycles​

Based on the provided search results, here’s an analysis of the recreational vehicle (RV) market’s economic cycles over the past decade:

1. Expansion (2014-2018): The RV market experienced a significant upswing during this period, driven by growing consumer spending on tourism and camping activities, as well as the rise of RV rentals and sharing services. The market size increased from approximately $34 billion in 2014 to around $48 billion in 2018.
2. Peak (2018-2020): The market reached its peak in 2018, with a valuation of around $48 billion. This was largely attributed to the increasing popularity of RV travel, fueled by a growing interest in outdoor recreation, road trips, and experiential travel.
3. Contraction (2020-2022): The COVID-19 pandemic led to a decline in RV sales and rentals, as consumers became more cautious about traveling and discretionary spending decreased. The market size dropped to around $42 billion in 2022.
4. Recovery (2022-2024): As the pandemic subsided and consumer confidence rebounded, the RV market began to recover. The market size increased to around $49 billion in 2024, driven by the resurgence of outdoor recreation and travel.

Trends and Insights

• The RV market has shown a cyclical pattern, with expansion and contraction phases lasting around 4-5 years each.
• The market is driven by consumer spending habits, tourism trends, and technological advancements in RV design and manufacturing.
• The rise of electric and hybrid RVs, as well as the increasing adoption of sustainable materials and designs, are expected to shape the market’s future growth.
• The commercial segment, including RV rentals and sharing services, continues to carve out its niche and contribute to the market’s overall growth.

Forecast
Based on current trends and market analysis, it’s expected that the RV market will continue to experience a moderate growth phase over the next decade, driven by:

• Increasing demand for outdoor recreation and experiential travel
• Advancements in RV technology and sustainability
• Growing popularity of RV rentals and sharing services
• Expansion of the global RV market, particularly in Asia-Pacific and Latin America

The market size is projected to reach around $69 billion by 2032, with a compound annual growth rate (CAGR) of around 4%. However, this forecast is subject to changes in consumer behavior, economic conditions, and technological disruptions.

 

[AbdRahim]

Also, many that could afford new for or five years ago (fixed income)have been priced out of the market as many new units are up over 50% MSRP. With 20% discount, assuming the same amount for a trade as four years ago, the loan could be double what it was back then. Ouch!

 

[Kevin D Pem]

That and a trend to out price places that buyers of 10 year and older RV users must rely on! Making new vehicles harder to trade up. Because the used market will suffer!

But the idea of freedom traveling in an RV will for a little while, at least remain in a few people's hearts.

 

[AbdRahim]

Scary thought. 10 years seems like a blink of the eye.