After massive pandemic era spending on alternative travel options like RVs, the marginal consumer is finally tapped out. Things were not helped by post-pandemic surge in production costs and the skyrocketing price of fuel.
Winnebago reported a 38.2% year-over-year plunge in the quarter due to sliding unit sales related to souring RV retail market conditions. Discounts were much higher than in the same quarter last year, an attempt by management to spark demand. However, high interest rates are curbing demand.
Revenue fell the most in the Towable RV segment, down 52% to $384.1 million. The decline is primarily due to lower unit volume associated with ‘challenging’ retail market conditions and discounts and allowances versus a year ago. Revenues declined 27.5% in the Motorhome RV segment.
A towable RV may be an option for those who can’t afford a house or flat – if they can find a place to park it.
There was a growing number of them in the Walmart parking lot down the street from my office; four over the winter, up to as many as ten this spring, but I heard through the grapevine that Walmart issued them all a “Get the hell out of here” notice this week. It was really getting to be an eyesore and I imagine Walmart must have finally had enough.
There will be more of this as the immigration firehose continues to pour gasoline on the raging fire that is Canada’s housing market.
Walmart parking lots are good for overnight boondocking, after checking with the store manager. Any longer is abusing the privilege. Some inconsiderate campers will ruin it for everyone.
I’m so old, I remember when selling your house and buying a Winnebago in order to travel all over Canada and US was a viable retirement option (at least until you reached an age where driving became a little hazardous).
For the past year, my husband has been researching full-time RV living for us when he retires. Our plan (fantasy) was to circle Canada and the U.S. for five years, wintering in the States and summering in Canada.
His latest number crunching suggests we explore Plan B. It’s not so much the cost of the RV and the truck to tow it, it’s everything else: fuel, insurances, campsite costs, memberships, etc.
We’ve been visiting dealerships and RV show for the past year and yes, there are some good discounts to be found but, like anything else, you get what you pay for. We’ve been looking at Grand Design (owned by Winnebago) and Brinkley. Not too many discounts there but I don’t think we’re even going to get to the negotiation stage.
My late wife & I took off in a Class ‘B’ (too small, with a Border Collie and a cat), from Salt Spring Island, (at her behest), in 1997. Crossed Canada to N.S. Down the east coast and wintered on the beach in Mulegé on the Baja.
Traded the Class ‘B’ for a used 5th wheel, and used F250 diesel.
I never really enjoyed the life, but it was her turn to choose – after she died, since I was stuck with the unit, I continued for a couple more years.
Little ‘tricks’ – at that time WalMart would allow RVers to park overnight in the far reaches of their lots. Monthly campsites are ‘cheaper’ (cough, cough), than nightly rates, so do day trips from your hub, (if you opt for a Class ‘A’ you’ll need a Toad).
OntarioKate:
We did that for three years beginning 2013 towing an Airstream. We went around North America three times and loved every minute of it (Yukon to Florida and San Diego to Newfoundland). I’m glad we did it then though as campsites are harder to find now without reserving well in advance (we almost always stayed in public parks – state/provincial parks, national parks and similar).
The market post pandemic went crazy (and it was busy before) to the point where Airstream dealers could not get stock and ordering wait time was over one year. Last year, we could have sold our unit for more than we paid for it (in part due to the Cdn. dollar depreciating relative to the US dollar).
My aunt and uncle owned an Airstream and wintered in Florida for several years. Covid killed that. They returned home in March 2020 and haven’t left since. They sold their Airstream this past year and “made a killing on it.” I have no idea what they initially paid or what they sold it for but the buyer will have no regrets. That Airstream was well cared for and in mint condition.
OntarioKate – I have a relative in the RV retail world. There is so much 2022 inventory on the lots that retailers are not ordering any new stock and some manufacturers may go bankrupt!! I would suggest one wait to buy any RV product as the process would have to come down. I would think that camping fees would also come down with people flying and cruising instead of camping.
Waiting is good advice. We are not in any rush to purchase. Although, my husband is counting down the days to retirement.
The best option for any excess funds is a viable food supply, and negotiable metals i.e. lead.
In my area of the woods the market is saturated with used RVs and fifth wheelers and campers, the prices are also dropping radically. Might be a good time to buy a retirement home on wheels before they ban them in the name of the liberal church of climate.
I did my part. I bought a new tent to replace my well worn saggy old one. I tent a lot, but I’d have to be way richer that I am to even think about an RV. I’ve never really had an interest in one anyway.
Has anyone noticed? You life is being destroyed. Sad thing is you don’t give a damn.
VOWG, I hear you. Life has changed so much and so quickly these past three years. I said to my husband tonight that I feel less free today than I have ever felt in my life. Does that make any sense?
Yes it does.