Used RV prices at the wholesale level suggest it might be the time to buy a used RV. Market watcher Black Book released their findings from the most recent wholesale auction month of October. While the prices were mixed, with motorhomes heading up and travel trailers down, the price trend overall is decidedly down.
Used RV prices on the motorhome side
“Motorhomes continued their frustrating ‘one month up, one month down’ pattern again,” reports Eric Lawrence. He’s Black Book’s chief analyst in the RV price field. “Towables were relatively consistent, with their values falling for the fourth consecutive month.” Regarding motorhome prices, Eric points out that although they are up this month, “their overall direction is clearly declining.”
This up-and-down roller-coastering of motorhome prices has been a regular feature of the market for months now. We asked Eric just why it is. While he couldn’t give us a definitive answer, he thinks it probably has roots in COVID-19. Specifically, when the pandemic caused waves of “stuck-at-homedness,” everyone just had to have one. The increased demand shot prices up, and manufacturers weren’t shy about taking advantage and pumping wholesale prices up even more.
But now, “Things are heading back to normal,” Eric Lawrence observes. He also adds that in October, the average model year for motorhomes sold was a year newer than in September. That tended to skew the prices upward. Lawrence, taking on his professorial role, suggested we students take a ruler and go back to, say, July 2022 on the graph and see how it points to this October’s prices. Down.
Towables down four straight months
The same is true for basically all used RV prices. Towables have declined four straight months in a row. While still higher than earlier in history, Eric says, “I think they’re coming back to where they should have been historically.”
Getting to the nitty-gritty of the latest month’s report
Taking a closer look at the markets, we see that the average selling price for motorized units was $63,812, which is up $2,234 (3.6%) from the previous month. Towables came in at $18,941, down $1,197 (5.9%) from last month. One year ago the average motorhome sold for $62,070 and the average towable unit brought $20,187.
Auction volume was higher: Motorhomes increased 0.1% while towables edged up 1.6%. The average age of motorhomes was 9 years old (2014) and towables was 5 (2018).
Is it time to buy a used RV?
“Several dealers we have spoken to in the colder states have said they are basically shutting down for a few months,” says Lawrence. “So future auction activity may be a little slower.” In a phone interview he added that dealers who are still open in the colder regions will be focusing, not on sales, but on service work. He says he feels that used RV prices will likely be lower for the next couple of months, as a result.
So here’s the thing. It’s difficult to say just where the market will go. But if you are thinking of buying a used RV in the next few months, now might be a good time to negotiate with a seller. Come spring, all bets are off, as demand will likely increase and you’ll find less negotiating room.
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Isn’t that just seasonal? People who already think of selling their motorhomes are motivated by saving their winterizing and storage cost, and their rig becoming a year older in a few weeks. So they list it for less than they would have in spring. October 2022-2023 for motorhomes is still up as per the graph.
Thank you, Russ and Tina! Fascinating. I would love to wade into those data and try to understand them. Sadly, we bought last year and likely bought our last RV when we did. No discounts for us. 🙁
The trouble is some dealers want top dollar for new RV’s and want to steal your used RV. Plus the high interest rates.