FEMA, RV Dealers, Head-On Over Surplus Sales

This blog has noted the sale of "surplus" travel trailers by the Federal Emergency Management Agency (FEMA), and the concerns raised by the Recreational Vehicle Dealer’s Association (RVDA). Earlier we noted that RVDA had fired off a letter to FEMA, asking them to reconsider the sale of RVs.

While we have yet to hear back from FEMA on the issue, the pot is definitely still boiling. Seems RVDA ‘can’t get no satisfaction’ from the agency, they’ve taken their case to Congress. On Tuesday, Mike Molino, RVDA’s director, testified before a congressional subcommittee. Molino repeated his call for action to be taken to force FEMA to sell travel trailers in large "lots" as opposed to the sales of trailers to individuals.

Once again putting the "public safety" spin on his comments, Molino told congress, "The practice of selling directly to consumers also raises significant public safety implications," he said. "Consumers could face many problems unless the vehicles are thoroughly checked out, serviced, repaired and reconditioned by qualified technicians. Is there a plan to educate consumers buying these units at GSA auctions?"

Altruism aside, RVDA is extremely concerned that its dealer-members will watch their sales go down the drain if there’s too much of a good thing in surplus RV sales. Planning on picking up a FEMA bargain? It may be time to get a move on.

FEMA Deliver RVs--on the Cheap

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.