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.
Conclusion
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.
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I’ve been in the business of moving RV’s since 1991. I have seen a few recessions, and several blow outs. The fact is, all dealers need to sell product. What we have gone in the past 3 years is previously unprecidented. We will see a decrease in prices, as dealers get overloaded with product, but with fuel, interest, and concern for what’s coming, I think it’s still 6-8 months before you see a decrease in RV prices.
I walked away from purchasing a new RV. Dealer was selling at MSRP and wouldn’t budge. I told them I don’t need it and will wait to buy in 2024 when we hit a recession. Win for me!
I wonder if the Class C’s will ever go back to pre-Covid prices, what do you think?
I pray they do, or else I will never be able to afford what I want
In 2020, My wife and I traded in our 12 year old 22 ft tag-a-long, we $8,000 for the trade and picked up a 2019 Palomino Truck camper. it was the best choice we ever made considering the rise in campground fees and availability of getting a site. Now we have the ability of boondocking here in the Maine woods, and other off grid camping spots. I set it up with 600 watts of solar, we carry a small generator. extra water. and we are good to go. And it’s still cheaper that buying a new RV or big rig.
And if we need to go someplace we can either pick up quick and go drop and go with ease.
Nothing new here! Basic economics at work, supply vs demand that’s it! Inflation is killing us all. I don’t want to pick a fight on why inflation is so high but I know one thing it is going to reverse. Whether that happens by the Fed increasing the prime interest rate or by recession, it is coming. Surplus inventory will once again be the name of the. game at every dealer, prices will naturally begin to come down.Good all Mikey will be able to purchase his Jayco for $49,900.
Better days are coming, I just hope it doesn’t hurt too many folks during this economic process. Last comment, give some thought to purchasing a gas motorhome vs a diesel MH. Supply and demand and price are going to be a deal breaker. Don’t let that happen to you!
Right before Covid struck I was set to buy new Jayco 22 ft motorhome for 49900 OTD a year later same motorhome was 100,000. Gas went up to 5.00 and now you need a reservation 6 months out to camp , after Covid everybody had red ass and paid double what there worth , now we’ll have to bail out banks again when there underwater
The motorhome doubled in one year? I plan to buy soon…do you think prices will ever go back to pre-Covid prices?
If anything needs to change it’s the transporter pay!!! The manufacturer and the transport companies are not paying the drivers enough to haul and deliver these campers, motorhome, etc. you buy these expensive trucks to run up and down the road and barely make the bills. Unless you never go home. It’s sad , companies are greedy and of course leave out the middle man. If it wasn’t for the drivers these would not be moving out of the yards of the manufacturer.
Hell to mark up an RV’s right now or $135%, why would they go higher I was in the industry for 35 years
K.I.S.S. > Keep Dealer Suggested Sell Price & then Deal Back!!