Those looking to make large purchases lately are being met with rising interest rates, inflation, and limited inventory amounts. These are all reasons to drive the market into an unpredictable frenzy.
Many are wondering if RV sales are up because home prices are too. Let’s see if the two have anything to do with each other.
Why Are RVs So Expensive Right Now?
RVs are expensive because the demand has been through the roof for the last couple of years. Many RV manufacturers experienced massive production delays due to global supply chain issues in 2020 and 2021. These delays reduced the amount of inventory available for shoppers, which caused the insane prices we’re seeing today.
Unprecedented levels of inflation are also to blame for price increases. It’s making everything more expensive, including RVs. With the RV industry experiencing some of the highest demand for RVs they’ve ever seen, prices will likely continue to climb until it slows down.
Are RVs Still in Demand?
While many expected the demand for RVs would slow down, it certainly hasn’t. There are still plenty of people in the market for both new and used RVs. According to the RV Industry Association (RVIA), May 2022 saw more than 50,000 RVs shipped out to RV dealers across the country. That’s a 2.6% increase from May 2021. As a whole, the industry is seeing an 11.8% increase compared to last year.
However, RVIA states that the market is starting to show signs of leveling off compared to 2021. They estimate the industry will continue to cool off for the remainder of the year. They even predict a -8.4% decline in total sales for 2022 compared to 2021.
Are RV Sales Still Strong?
We’re beginning to see more dealers with plenty of available inventory. RV sales are still strong but not what they were in 2020 and 2021. RVIA President and CEO Craig Kirby states, “Our latest RV shipment forecast shows that inventories at dealer lots have normalized at a slightly faster rate than initially expected due in part to RV manufacturers and suppliers working to get units built and to dealer lots ahead of the summer travel season.”
However, rising gas prices will likely play a significant role in many still on the fence about making an RV purchase. He says, “RVing remains a popular option for consumers who are looking for the freedom to travel while also controlling their costs.” It will be interesting to see what RVIA data reveals at the end of this camping season.
Pro Tip: Ready to join RV life? Use these 11 RV Buying Tips You MUST Know!
What Is the Best Month to Buy an RV?
The best time to buy an RV is during the slow season. For most of the country, this typically starts in late September and early October. This is when the temperatures drop and people stop thinking about camping. You’ll see dealers becoming generous with discounts and incentives to encourage shoppers to buy during the slow season.
Many feel that December, January, and February are the best months to buy an RV. These are some of the slowest months for most dealerships, and many are looking to make end-of-the-year sales to hit sales goals or get a jump start on the new goal for the new year. However, don’t wait too long to sign on the dotted line. When the temperatures start rising, the prices typically follow suit because camping and peak shopping seasons are just around the corner.
What Is the Cheapest State to Buy an RV?
Montana is the place to go if you’re looking for the best deal possible! There are zero sales taxes there! Yes, you read that correctly! There are no state, county, or city sales taxes on purchases, including RVs.
However, you can’t just drive to Montana to purchase your RV to avoid paying sales taxes. You typically pay sales tax when registering the vehicle in your home state. So unless you’re planning to become a resident of Montana before buying your RV, you better pay Uncle Sam.
A handful of other states have no state sales tax, Alaska, Delaware, New Hampshire, and Oregon. However, these states often allow cities and counties to impose sales taxes at the local level.
How Much Can You Negotiate on a New RV?
The RV market has been rather unpredictable for the past couple of years. In previous years, many shoppers could negotiate as much as 20% to 30% off the manufacturer’s suggested retail price (MSRP). However, many shoppers find that dealers haven’t been as willing to negotiate nearly as much in recent years. This is mainly due to the lack of supply and increased demands.
We’re firm believers in “it doesn’t hurt to ask” when making a large purchase for an RV or other vehicles. The worst that can happen is the salesperson saying no. At that point, you can make another offer. Any salesperson that wants to make a sale won’t walk away from it. If you don’t get the dealer to make a deal you’re comfortable with, walk away and find another one. You should never feel pressured to purchase an RV or any other vehicle if you’re unhappy with the deal.
Pro Tip: Navigating buying an RV can be stressful! Make sure to avoid The Don’ts of Buying an RV while shopping for your new home on wheels.
Are RVs a Good Investment?
If you’re looking to make a financial investment with a good financial return, you likely don’t want to purchase any type of RV. This is because RVs are one of the highest depreciating vehicles available to consumers. They’re worth a fraction of their original value in a few years. However, if you’re looking to make a purchase that’s a huge investment in memories and experiences, RVs are one of the best.
An RV can take you and your family on incredible and unforgettable adventures. You only get so much time to make memories and spend time together as a family. Parents further down the road can attest that some of the best memories and experiences were trips the family took together. Buying an RV is worth every penny for making priceless memories with loved ones.
Are you ready to join RV life? Tell us in the comments!
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