Will RVs Go Up In Price Next Year?
It’s impossible to talk about what RV prices will do in 2023 without bringing up what’s happened to the RV market in the recent past. It’s been a strange few years for everyone, including the RV industry.
In 2020, the pandemic brought extraordinary travel restrictions that made airline travel impossible. But that wasn’t all; other restrictions encouraged social distancing, isolating, and quarantining.
All these restrictions made people want to get away from it all more than ever. In addition, many former office job positions became remote jobs. Employees could work from anywhere and check in for virtual meetings with other people from the office.
More people than ever looked to RVs as a way to enjoy a socially distanced family vacation, work from a mobile office wherever they wanted, or both.
Not only that, but from 2020 to 2022, the increased demand for RVs brought historic price increases with it. However, interest rates remained at some of the lowest levels in a very long time. This made taking out an RV loan a very doable fit for many household budgets. The demand for RVs skyrocketed, and it brought RV prices along for the ride.
RV manufacturers struggled to meet demand
RV manufacturers struggled under a sometimes overwhelming demand for new RVs from dealers at a time when pandemic-related restrictions were decimating their workforce. It became difficult to find qualified employees who were able to come to work. But the demand for RVs was soaring, and RVs had to be built faster than ever.
According to an October 2022 article published by IndyStar, some RV plant workers more than doubled their production from 16 to 36 RVs per day. Increased production from a sometimes scant workforce led to more errors being made in the workmanship and quality of some RVs.
Another challenge for RV manufacturers was getting computer chips for the motorhomes they were building. When the chips finally arrived, they were finally able to ship motorhomes, creating an inflated number of motorhome shipments that arrived on RV dealer lots.
A return to normal
Soaring RV prices, a climbing rate of economic inflation, and increases in lending rates have all had an effect on consumer demand for RVs. In spite of optimistic RV industry forecasts, demand for shipments to dealers lost steam and then dropped off by 16% overall as 2022 progressed. The RVIA sees this decline as a return to normal market trends, which it expects to carry over in 2023.
As 2022 draws to a close, RV prices are declining across all classes but one. Class B motorhomes are still very in high demand, perhaps in response to high fuel prices. As a result, prices for Class B motorhomes haven’t seen the same decreases as other classes of RVs.
The demand for Class A motorhomes has plummeted, reflecting consumer concerns about how a diesel shortage and high gas and diesel prices will affect their ability to use their RVs.
Dealers are already marking down 2022 RVs to clear space on their lots for incoming 2023 models. Although there will always be a demand for good quality RVs, the market for RVs is nowhere near what it was in 2021 and early 2022.
As 2023 progresses, expect to see many used RVs come on the market due to the effects of a looming ecomomic recession. People who tried the RV lifestyle for the first time in 2021 are going to be facing both higher loan interest rates and a higher cost of RV ownership with inflation on RV insurance, fuel, and parts. Historically, when the economy goes into recession, the recreational toys are sold off before the houses.
In general, RVs are going to continue to decrease in price in 2023, due to an incleased supply of RVs and a decreasing demand for them. Class Bs might be the exception to this, as demand for them from Gen Z, Millenials, and Boomers continues to rise.
As prices for RVs decline both the new and used sectors, 2023 will very likely be a great year to save money on an RV. Prices will almost certainly (can we ever be certain of anything these days?) not be going up as they did for the last two years.
Looking to buy or sell an RV?
Whether you are looking to buy or sell an RV in 2023, National Vehicle is a great resource for RV owners. Learn more about their services: