After a few years of slow inventory fulfillment, many dealers still find themselves in a tough spot. How can they encourage customers to buy new units while maintaining realistic expectations about what can be delivered and when? Not only that, but dealers have had to raise prices because of inflation in 2022, making RVs a harder sell for cost-conscious customers. According to an IDS survey of RV dealers across North America, 85% of respondents cited rising product prices as one of the biggest challenges they expect to face in 2023.
Here are some trends we’re seeing in RV sales.
USE ‘EM AND LOSE ‘EM According to Go RVing, 48% of consumers who purchased an RV through secondhand channels would consider buying the same brand again . Despite this, many dealers may not be seeing as many used RV buyers due to interest rates being higher on used vehicles and used vehicle prices not being much lower than new ones. In some cases, buying used is more expensive than new because the used vehicle is available right away, versus the customer needing to wait six months for a new vehicle. This can lead to an overstock of used vehicles on dealer lots, with existing RV owners wanting to sell their RVs for more than what they paid. Dealers can aim to minimize unit resales by including retention messaging in their marketing, showing the different ways that RV owners can get the most out of their RVs.
“Small, less expensive units will be the biggest movers in 2023 due to the economic challenges.”
FOREST GRECO RV General Store
Ride out this wave, but also have a mitigation strategy for when inventory catches up. Dealers should also watch wholesale book prices to make sure they don’t over-purchase and that their inventory is priced accordingly. Watch used inventory turns in a market where things are expected to start cooling off.
THE PERSON-TO-PERSON RENTALS OPPORTUNITY
According to an IDS survey of RV dealers across North America, 85% of respondents don’t currently offer rental services and don’t plan on adding them in the year ahead. But what about the opportunity for customers to rent out their units?
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