When RV dealers go to the auction to buy used rigs, that’s what you’d expect them to buy. It didn’t happen that way in June. A huge number of brand-new, 2022 travel trailers—some with their furniture wrapped in packing material—rolled across the blocks. It wasn’t the only “funny” thing in this month’s report from Black Book, the industry market watcher. Motorhomes continue to act like literal bounders.
Travel trailer prices shoot up
The latest “used” market report from Black Book is based on auction sales across the U.S. in June. A quick comparison to the May report is an eye-opener. In May, the average towable sold at auction for $21,362. But June saw prices shoot up to an average of $25,056—more than 17% in just a month. Skewing the prices were the huge number of 2022 travel trailers. Black Book’s RV market specialist, Eric Lawrence, says it’s possible that 20% of all towables at June auction were brand-new units.
What gives? Why would RV dealers liquidate 2022 travel trailers, and quite likely at a loss? Lawrence speculates the dealers are beginning to sweat the 2024 model year, just around the corner. They probably figure that having new 2022 units on the lot, along with their existing stock of 2023 units, would be just too much when the 2024 rigs roll in. Adding fuel to the speculative fire is this: Will a customer tow a new 2022 travel trailer off the lot and have the same “new” warranty if he’d purchased it in 2022?
With this huge number of 2022s at auction, the average selling price was definitely skewed. And while in May the average travel trailer sold was six years old, in June it shrank to just four years old.
Curveballs from motorhomes
Motorhomes likewise threw a curveball at the statistical records. “Motorhomes continued their familiar one month up, one month down pattern,” says Eric Lawrence. The last several months have repeated the pattern, high prices one month, and low the next. June was a “low” month. The average selling price for motorized units was $68,405, which is down $4,988 (6.8%) from the previous month (May).
We asked Lawrence for an explanation of the “bounder” price fluctuations in the motorhome market. He could only speculate that somehow, inventory issues might be the driver. He could give no explanation based on market drive.
In any event, prices are decidedly odd when comparing June this year with June of 2022. One year ago the average motorhome sold for $73,615 and the average towable unit brought $20,257. Now motorhomes are down to $68,405; travel trailers, as mentioned, were up to $25,056. And as to the number of units sold, here was yet another divergence. Motorhomes decreased 4.3%, while towable sales increased 7.1%.
Where will it go from here? Nobody wants to make a prediction. Tune in next month to see.
##RVT1117b
I think I would only pay 40% of value. That would leave enough money to upgrade/repair all of the deficient/sub-par construction.
in private listings or dealer, what are people paying vs. asking price for used?
I think that would be a whole other article!
Better send a bunch over to Maui.
I think you’re right. It’s what FEMA did after hurricanes Charley, Frances, and Jeanne did in 1994. (at least in Florida)
Right! It’s what FEMA did in 1994 after hurricanes Charley, Frances, and Jeanne (at least in Florida)
The bloom is off the RV rose. Many “newbies” and people “under water” on 20 year RV loans are “getting out of town” AND the dealerships are running scared on the bottom dropping out on the RV market.
The sad thing about this situation is it causes the value of our RV’s to depreciate drastically. I looked at two 2021 Grand Design TT’s same model at two different dealers in two different states. They wanted around as much for them as when new. They wouldn’t budge much on price. The one dealer wanted to steal my trade. Seems like price fixing.
One only has to quickly glance at either of those charts to see that both towables and motorized had unprecedented (and WAY above inflation rates) wholesale price increases at auction, starting shortly after the start of the pandemic, and really only “stabilized” at near record prices. I would have expected at least a drop back down to 2019 + reasonable inflation for pricing, especially considering a 50% YOY decline in sales. Net…RVs are still selling at a premium…except dealers want to steal your trade and will tell you the market is down while charging a still high price for the one you want to buy.
DH and I think you’re right.
Thank you for following this. Most interesting even if a bit hard to understand, which makes it all the more interesting and something to follow. Thanks again!
This is our second year of camping. We bought a 2020 Aurora 18RB camper for $12,000. It had been stolen and recovered. Brand new, never used. I don’t know how they found it but they did. Paperwork was still in the microwave, tv still had shipping wrap around it, toilet still had seal on it. Of course no warranty. Title says Total Loss Claim. So yes, there are good deals out there if you just take time to look. As far as a warranty, from what I read, the dealerships and manufacturers don’t honor them anyway and if either of them do, it’s only after months of getting the runaround.