Black Book, the authority on wholesale RV prices, reports the most recent auction values are tumbling. Used motorhome prices dropped like a rock in the most recent posted month, November 2023.
Motorhome prices drop precipitously
“Motorhome values declined quite a bit last month,” says Eric Lawrence, “continuing an overall trend that first emerged in mid-2022.” Eric is Black Book’s principal analyst for the RV Market. “Quite a bit” may be something of an understatement. The average sale price on the wholesale market for motorhomes fell $9,916 from October, making the average sale $53,896. That’s nearly a 16% drop in sale value in a single month.
A $54,000 sales price is the lowest since August 2020—during the skyrocket of prices during the “pandemic gold rush.” Looking at it another way, the sales price in November 2022, a year ago, was $68,656. Over the year, the used value of motorhomes has dropped nearly 22%. While the one month drop is significant, when one looks at the curves on the price chart, an overall 22% drop in motorhome prices over a year is a whopper.
Towables also decline
Towable prices likewise came down, but not as precipitously. “Towables were less volatile,” notes Lawrence, “with their values falling slightly for the fifth consecutive month.” “Slightly” translates to a 3.4% drop over a month. What is significant is the five months of towable price drops. Comparing year-over-year prices, in this latest report, wholesale prices averaged $18,294. A year ago, they fetched $18,529, showing a year’s decline of 1.3%.
Eric Lawrence says the huge difference in price drops between towables and motorhomes is likely Covid-related. During the RV industry’s gold rush of pandemic buying, other factors came into play. Motorhomes, with their more involved components, including motorized chassis, came in for major supply chain issues. At the height of the buying frenzy, there was a paucity of new units available, shoving the prices on motorhomes into the stratosphere. It took a while for the supply chain to “catch up” and, hence, the prices stayed higher, longer. Towables, being “boxes on wheels” had fewer supply chain issues, and their prices stabilized more quickly. “Over time,” says Eric Lawrence, “things balance out.”
Covid market now going under the gavel
And here’s a footnote to November’s sales. “We’re starting to see more of the units that were sold new during the ‘Covid market’ showing up for sale at the auctions,” reports Black Book’s Lawrence. Eric called the situation, “A couple of years of digestion.” Folks who wanted RVs during the pandemic rush often didn’t have much in the way of choice—you bought what you could, even if it wasn’t quite what you wanted. Now some buyers are finding out their current rig is “not right” for them, so they’re trading in. Or, they’ve found out the whole idea of RVing just didn’t work, and so are dumping their rigs.
Not unexpectedly, auction volume was lower in November. Motorhomes decreased 14.3% while towables dropped 16.5%. The average age of motorhomes was nine years old (2015) and towables was six (2018).
And the future?
What’s in the future? Near-term, Eric Lawrence says he doesn’t see much changing for the next couple of months. However, look out in, say, late February or early March auctions. The proverbial “RV spring thaw” will come online. Buyers will start haunting dealer lots, and prices will start to rebound. If you’re a bargain hunter, you may have a couple of months to snap up a used rig for some of the lowest prices in a while.
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Does this go for used prices in dealer lots as well? doesn’t look like it to me. Trying to sell my class A which I almost have to give away….then looking at a replacement has been hard. They don’t seem to be lowering prices on theirs.
I think we have one more year of declining prices and the spring won’t see a great rebound
We bought a used Tiffin 06 40 QSH DP in 2018. One good buy as we bought “pre-Def” and a year when they were still making a quality coach. Wait till all the “Covid crap” comes on the market and nobody will pay good money for that crap. The bottom will fall out of the used market as all of those units will be in scrap yards and the “new crap” being produced will be even more expensive and of worse quality. A “perfect storm” is coming to the RV industry.
Good job on the 06 Tiffin. We had a 40’Tiffin, 06 and it was a great unit. Agree on the def too. Went thru that nightmare on our 19, 44dp but are thankful it is pre-covid.
Why I will NEVER buy new, they’re all junk!! If and when I upgrade, I’ll be looking for pre-Covid and I know that isn’t saying much, from the quality aspect.
Does this decrease in price as the Covid buyers bail out mean that campground rates are right behind this? KOA on Galveston Island is raising their rates once again. So we are looking elsewhere after staying here in the past. Are you looking also?
Seems unlikely. Inflation affects everyone. The increased cost isn’t entirely due to increased demand.
Thank you, Russ and Tina! What is the source of the RVs sold in the auctions the Black Book tracks? Are there a few centralized auctions, or many that occasionally spring up, as the accumulated stock reaches some level deemed high enough to hold an auction? Thanks again and safe travels! 🙂
The RV financial world is one of the most volatile. 2-3 year cycles seem to be the norm. During a boom I always feel for the people who move to Indiana, for the jobs history dictates won’t last beyond a few years. Thus huge turnover, contributing to the overall poor quality.
Nothing has changed in the Tampa area, still have the same trash for sale at the same trash places. Prices are not falling and quality is non existence. Camp grounds are going up up up we stayed at a place in Bradenton Florida, the last 12 or 13 years. We stayed on a summer program it has increased over a 1000.00 in that time period with only minor improvements. We will not be going their this summer. They are robbing people in my opinion. I hope others follow suit and stay somewhere like we are.
I’d like to see if there is any difference between east coast vs. west coast resale price comparisons, maybe even the central US.
Per the article, I would say location plays a big roll in “used” RV prices. In my neck-of-the-woods, used RV prices are not coming down, which is why dealers have a glut of used RV’s sitting on their lots. I recently was looking at a 2018 5th wheel, but turned around and walked away when they refused to budge on the price. You would think they would want to get a used RV off their lot, but I guess not.