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Will The Increasing Fuel Prices Push The RV Industry Into Another Crisis? Part 1

by Alan Wiener
(Everything-About-RVing.com)

Editors Note: This is the first in a series of 3 articles I originally wrote in 2009 about the crisis that the RV industry was experiencing.

With the recent dramatic increases in fuel prices and experts stating that a gallon of fuel could cost as much $5 to $6 by July; the question needs to be asked: "Are we going to experience Déjà vu all over again in the RV Industry or have they learned their lessons from their past mistakes?"

RV Industry Crisis Introduction
By Alan Wiener; Editor: Everything-About-RVing.com

RV sales had been declining prior to the beginning of 2008. In fact, some RV manufacturers started having financial problems in 2007 and tried to cut costs where they could. The rumors starting flying that certain RV Manufacturers were in deep trouble unless they found some new sources of funding. But, the RV Industry still kept producing RVs in the hope that if you build them they will come. The writing was on the wall, but nobody was reading what it was saying

Then in early 2008 fuel prices started to escalate. There were rumblings about banks having problems with certain bad loans. The overall economy took a turn for the worse and unfortunately the RV Industry and several other US Industries were not quick to respond to the downturn in consumer confidence. Throughout 2008 the fuel prices continued to escalate with no end in sight. People were no longer looking at "fuel-guzzling" RVs. Lending agencies were pulling out of making loans on "luxury items" such as RVs. Throughout 2008 some RV manufacturers starting filing for chapter 11 bankruptcy. Even though this crisis had really begun years earlier, the snowball started to grow rapidly in 2008. There was now a glut of new RVs on the market and no one was buying them.

Let The Good Sam Extended Service Plan Pay Your RV Repair Bills

When the reality finally struck the RV Industry that they needed to take drastic action; the RV Manufacturers started reducing production, laying off employees, shutting down factories and trying to find even more ways to cut their costs. For a lot of RV Manufacturers, even these drastic cost-cutting moves were too little too late. Now the RV Industry has been brought to its knees and is hoping that some miracle will happen to make this crisis go away.

The visitors to the EARV website are well aware of this crisis, in fact, here are some questions that they recently asked us.

Is The RV Dealer Responsible For Warranty When The Manufacturer Goes Bankrupt?

I Want To Purchase An RV Made By A Manufacturer In Chapter 11 Bankruptcy

Has Fleetwood Stopped Manufacturing Travel Trailers?

Editors Note: What do you think? Is the RV Industry heading for another crisis? Give us your opinion by clicking on the "Click Here To Post Comments" link located near the bottom of this page.

Comments for Will The Increasing Fuel Prices Push The RV Industry Into Another Crisis? Part 1

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Rating
starstarstarstarstar 		Mass rush to sell RVs
by: Anonymous

So many people bought RVs at inflated prices in the past 2 years. The average standard class C price jumped from $60k to $100k in under 24 months due to Covid and chip shortage. Now you have tons of first time RV owners with sky high loans facing $6/gal gas. Even in normal times a lot of first time RV owners quickly realize that storage, insurance, fuel, and lack of free time all contribute to deciding the RV life is not for them. We're in strange times, but it seems like the perfect storm for the market to be flooded with used RVs. The correction is coming.
Rating
starstarstarstarstar 		Back to tents?
by: Anonymous

Our camping group is considering canceling reservations or breaking out the tents and coolers after 20 years of moving up to pop-ups, and on to hard sides.
Rating
starstarstarstarstar 		Try this
by: Anonymous

We just purchased a tent to use for short trips instead of taking our motor home. We go to TX in the winter with our MH from IL. But we will do some great "side" trips this time using a tent instead of the MH. The MH will be parked more due to the steep rise in gas prices! I just do see them coming down anytime soon!
Rating
starstarstarstarstar 		Fuel Price & Use
by: Anonymous

The price of fuel will be a factor in deciding how I will use my motorhome this year. The primary purpose is to travel to different parts of the country, but if fuel remains high then use will be more localized. A secondary use will be in a couple of years when I retire - then the motorhome will be used in an extended stay in Florida.
Rating
starstarstarstarstar 		Sad!!
by: p.p.

i can see where it will hurt the camping business . People will have to use money for gas to go back and forth to work.the camping show were down in attendance and sales were down...as the announcement of $5.00 gas came out the week before the show ! How sad!
Rating
starstarstarstarstar 		Don't Worry - Be Happy
by: Pat

I do not have a problem with the higher cost of the gas.

1) My husband and I have purchased an RV lot in an RV resort and do not plan to roam the roads with the RV. We will be living in it - fulltimers. If we want to go somewhere, for a length of time, we will hire a "hotshot" to move it. They will also be hit with this crisis and will compete even more agressively for your business.

2)When we go to purchase our new RV, we will be able to get a great deal. Negotiations will be even smoother.

3) I feel for those that will be having a hard time but, now is the time to wait it out, and watch the RV lifestyle change a little. Not to worry, it will change back and the price of gasoline will come down.

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