Used RV wholesale prices for auctions in June showed a giant anomaly. For months motorized RV prices dragged their heels. Suddenly, motorhome prices spiked, while towables lagged. Why the statistical shoot-up? And why would an RV market-watcher suggest now might be a good time to buy a new RV? Read on.
“Auction values diverged”
“After several months of consistency, the values for Motorhomes and Towables sold at auction diverged this month,” reports Eric Lawrence with Black Book. “Towables dropped slightly, but Motorhomes saw a dramatic and unexpected increase.” Lawrence is Black Book’s specialist in RV market prices.
“Diverged” is a mild term for what happened. The average selling price for motorhomes hit $68,756. That’s up nearly 18% from May sales; $10,345 higher. At the same time, travel trailers and fifth wheels crossed the auction block, shaking off 1.7% of their sales value compared to May numbers. Towables came in at $19,057, down $332.
Are motorhomes “back in style”? Not!
While some might be in a hurry to break out the confetti, thinking that motorhomes are suddenly back in style, Eric Lawrence puts on a damper. “There were an unusually large number of high-end Class A’s sold last month, which had the effect of raising the average selling price disproportionately,” Lawrence clarified.
We asked Lawrence for his definition of “high-end” motorhomes. He explained that several rigs crossed the block in the $300,000 to $400,000 value range. He pointed out that far fewer motorhomes sell at auction than towable units, so it doesn’t take too many big sales to tweak the statistics. “It’s just a function of the market,” he adds.
History lesson shows this spike not unusual
Showing these weird turns of statistics shouldn’t be unexpected. Lawrence gave us an RV sales history lesson. Last year, in 2023, one manufacturer “dumped” a large number of brand-new 2022 towables on the market in a single month. As a result, the towable statistics saw a similar spike. It didn’t take long for the numbers to come back down to normal.
Is there any way to work that out, statistically, we wondered. “I hate weighted averages,” Lawrence told us. “You can ‘adjust’ in any direction you want,” so Black Book prefers to rely on a straight average, and let the chips fall where they may.
Rounding out the numbers for June wholesale auction values are these stats. Auction volume up: Motorhomes increased 4.8% while towables rose 11.1%. In terms of age, the average age of motorhomes sold was nine (2015) while towables was five (2018).
How could it be a good time to buy a new RV?
Lawrence told us he’s heard from RV dealers that the new 2025 models are decidedly populating dealer lots. Many commented that while the 2025 prices are more down-to-earth, the units have been “de-contented.” No, these rigs aren’t discontent, rather, the bling—whistles and bells—that earlier model years have been crammed full of, aren’t so much in the new rigs. RV manufacturers are concerned that if they sold new rigs with the usual amount of extra junk, their prices would have to go up. Up more than consumers are willing, or even able, to pay.
As to how the new RV market is for buyers, Lawrence says this might be a time for those who want a new rig to start shopping. As the 2025 models are popping up on lots, there are still plenty of unsold 2024 models, and even some dealers with technically new 2023 units. Dealers are ready to move the older units, and may substantially reduce prices.
It’s not just having the new 2025 models on the lot at issue, there’s still a COVID hangover. Many of those who bought new during the 2021 “RV dealer goldrush,” or “sugar high,” as one industry CEO recently put it, are now in over their heads. They paid so much more for their rigs, they’re still financially “underwater.” To trade in those rigs, they’d have to pay off their loans—and then cope with today’s much higher interest rates. Even if they wanted a new rig, a lot of RV owners just can’t financially do it. And the dealers are seeing depressing sales numbers as a result.
So, if you’re financially able to buy, it might be a good time to buy a new RV.
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Well its good they are starting to remove the bling. I guess the industry has reasoned the average shopper is more astute now days.
Thank you, Russ and Tina! 🙂 That is what Brett Davis said several weeks ago. I bought it, but DW is not on-board until RV #2 returns from Alaska, but possibly not then. 😉 I guess we’ll see. Thanks again, have a great weekend, safe travels, and safe stays! 🙂