
What hurricane Katrina did for the RV industry, FEMA may now undo. It's a good-news, bad-news scenario, and folks shopping for travel trailers may come out on the winning side.
In the little burg of Hope, Arkansas, there's a most unusual RV park: It's the FEMA "parking lot" for 12,000 travel trailers destined for hurricane survivors. Some of the trailers helped folks, others never got beyond this 450 acre lot. Now FEMA needs to let them go--but that's just the tip of the iceberg: Nationwide there are nearly 46,000 trailers in FEMA's inventory, most of which will eventually be sold at auction. For how much? Figure about a 25 cents on the dollar for what FEMA hastily paid for them.
Even now, Uncle Sam has plenty of travel trailers at auction. Some have been beat up pretty good by tenants, others "scavenged" for parts. But with prices on 2005 model year units in the $3,000 to $5,000 price range, you can bet the bargain hunters are on their way. Maybe you can cash in on the deal--mind you, if you're the successful bidder you'll need to make haste to get your new rig off the lot: The government typically allows 10 days for removal after the auction closes.
There's a dark side of course: With so many FEMA trailers flooding the market, what will happen to RV dealerships who have to compete with the inundation of low-cost trailers? Uncle Sam's folks say they're not unconcerned about the matter. Time will tell.
Labels: FEMA, Katrina, rv, surplus, used