A popular YouTuber recently shared evidence that used RV values are declining.
The news is music to the ears of those of you patiently waiting for prices to drop. However, it’s a serious problem if you’re trying to sell your rig anytime soon.
Today, we’re sifting through the data to get to the bottom of this significant change in the market.
Let’s crunch the numbers!
YouTuber Has Proof RV Values Are in a Decline
Alan Sills from RV Across America dove into the latest JD Power pricing update on used campers. He uses these numbers to assist clients in buying and selling used recreational vehicles. And, with six updates a year, Sills states the shifts are typically minor.
Nevertheless, Sills claims he couldn’t believe his eyes after opening the November update. It revealed a 5 to 8 percent slide across the board. One of the most impacted models was a Voltage toy hauler, which fell approximately $4500 in 60 days.
With no explanation about what caused such a drop in these numbers, Sills speculates about the market’s motivation.
The YouTuber spends the rest of the video sharing his thoughts on RV values in decline. While the future doesn’t look great, he doesn’t expect it to continue at such an extreme rate.
About JD Power
JD Power is a global research company providing insights for consumers and financial institutions. It was founded in 1968 by James David Power III and has grown into a trusted source of data across various industries.
In May 2015, JD Power purchased the National Automobile Dealers Association (NADA) Used Car Guide. Their acquisition allowed them to access pricing data for several types of vehicles, including RVs.
Like Kelly Blue Book, lenders and dealerships trust their recommendations when assessing values. The results can significantly impact how much financial institutions will lend borrowers and what dealers offer for trades.
Discover The Best Class A RV for Holding Value.
Why Are RV Values in a Decline?
The motorhome industry has experienced a tremendous explosion in sales over the last several years. Manufacturers struggled to keep up with demand, and dealership lots sat practically empty. As a result of low supply, prices across the board skyrocketed.
However, the RV Industry Association’s (RVIA) data reveals new shipments are down almost 50% compared to last year. A drop this dramatic indicates slowing buyer interest as dealers aren’t moving units as quickly.
Additionally, the over-saturated market is another primary reason for the decline in used RV values. Countless owners aren’t using their campers as much as they thought. As a result, they’re putting their used rigs up for sale to get out from under costly loans.
Finally, it’s important to know that the economy plays a significant role in the equation. An increase in interest rates causes banks to be more picky about who they’ll lend to. Getting approved for auto loans has always been challenging, but it’s even harder now. You need a nearly spotless credit report to get financing at a decent rate.
We found out Why Sprinter Vans Hold Value Better Than Any Other RV.
What’s the Outlook for the RV Market in 2024?
According to Sills, he doesn’t expect any notable changes going into 2024. He anticipates sellers will look back and consider the current times “the good ole days.” While lower sales numbers won’t stay as dire as they are now, they’re probably not going away. If you’re a buyer, this could be the time to get a steal of a deal from a motivated seller.
On the other hand, RVIA recently released its forecast for 2024. Their predictions are slightly more optimistic than Alan’s.
Despite massive declines in shipments and values in 2023, they anticipate a 22 to 24 percent increase in the new year.
Nevertheless, it’s essential to know that they don’t have an unbiased outlook. Their board of directors includes leadership from Winnebago, THOR Industries, Forest River, and other titans in the industry. If anyone has a vested interest in the future of this market, it’s these brands.
How Do You Find the Value of a Used RV?
Knowing the value of your rig is crucial if you’re planning to sell or trade it. A big mistake owners make is taking their camper to a dealership and asking what it’s worth. Typically, you’ll only get a fraction in these situations.
Your best option is to do some research. JD Power is a great place to start. You can enter the information specific to your make and model and quickly see the value. Depending on your situation, it might be several thousand more than a dealer might offer.
Another option to consider is RV Trader. Search for listings similar to your model, year, and condition and see what they’re listed at. You’ll want to keep this in mind when creating your listing on the marketplace.
Do RV Values Always Decline?
Like most vehicles, RV values almost always decline as they age. Unfortunately, recreational vehicles usually depreciate incredibly fast. The experts at JD Power estimate your rig can lose 20 percent when you drive it off the dealership’s lot.
When you’re spending $50,000 to $100,000 or more, that’s a massive hit.
In general, how quickly it depreciates depends on several factors. The class, brand, and condition are vital in determining its worth. Class C motorhomes retain the most, while fifth wheels and Class A and B motorhomes tend to do the worst.
The odds of flipping your camper for a profit aren’t very likely. When most of us purchase a recreational vehicle, we’re investing in our family and their experiences. Instead of trying to make a buck, focus on the priceless memories you’ll create together. They can be worth every penny.
Have you wondered: Can I Write Off My RV?
It Might Be The Time To Hold Onto Your Investment
Alan Sills shared with his viewers that he expects RV values to continue to decline. Because of the drop, it’s not looking good if you’re an owner wanting to sell. He predicts things will likely get worse before they get better. However, the last few years have taught us that the market can be wildly unpredictable.
Keep your eyes open. It could swing the other way just as quickly.
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