Another GD Price Increase

[BrokeDown]

I think once the smoke clears in a few years the rv industry will be hit hard and bad times to come.
Mark

And there will be plenty of really nice used RV for cheap.

[dryfly]

And there will be plenty of really nice used RV for cheap.

I have asked this before, how are the folks that are paying MSRP and financing for 12+ years going to be able to sell a used trailer after 2 or 3 years? They will be so upside down, and I suspect most of them will not be able to take the financial hit. Couple this with flimsy trailers subjected to hard usage by kids. It ain't gonna be pretty.

[goducks14]

Worst time ever to buy an RV. Prices are jacked up from supply shortages and units for sale shortages. What used to sell for $50K MSRP is now pushing $65-70K. Nothing any better inside or outside.
JMO but it won't be long before the RV industry prices it's self out of business. Sorta like housing for lower income buyers. The same's going to happen for the mid and upper priced stuff.

Pick any brand if you want but who in their right mind would pay $65-70K retail for a mid profile like a Reflection or Cougar 5th wheel? Thats just insane.

[ajg617]

BTW: I did a factory tour the other day. They need to put QC people at each station. Whoever they got stapling the left side of the roof trusses needs to be retrained (or let go)... I assume there are two people, on one side, every staple hit what they were stapling into. On the other side, most staples had one whole leg sticking out. Seeing that did not instill confidence. Another assumption is that they are on a clock and rushing.

BTW2: On a positive note, they are using the money to build 2 new factories.

That's discouraging - what line was it on?

Are they building the two factories outside of Elkhart area?

[luvmyrv]

Worst time ever to buy an RV. Prices are jacked up from supply shortages and units for sale shortages. What used to sell for $50K MSRP is now pushing $65-70K. Nothing any better inside or outside.
JMO but it won't be long before the RV industry prices it's self out of business. Sorta like housing for lower income buyers. The same's going to happen for the mid and upper priced stuff.

Pick any brand if you want but who in their right mind would pay $65-70K retail for a mid profile like a Reflection or Cougar 5th wheel? Thats just insane.

Obviously many are...otherwise we wouldn't even be having this conversation.

[FoxyJoe]

It all relative...the price goes up on new, it also goes up on used. The only people who are not feeling the pinch are those that are retiring from RVing, as the price increases are mitigating their depreciation.

I'm a licensed marine captain, so deep into the marine business moving large boats for clients in my spare time. I was turning down transports all year long from new boaters, never seen anything like it, ever. Nobody ever got less than asking price on their boat since COVID started. In 2019 I sold my 56' Carver Motor Yacht for $375K in September of 2019....the purchaser resold it in February of 2021 for $440K.

Its not just RV's, it's everything recreational.

[BrokeDown]

That's discouraging - what line was it on?

Are they building the two factories outside of Elkhart area?

That was on the Momentum line. I was pretty amazed. I would understand one here and there missing the mark, but this was on most of them on one side. And it wasn't just one, all 4 that were there were the same. It made me that it was supposed to be that way.... but I doubt that is true.

The new factories are in Middlebury (at least one of them is.) Momentums are built in plant 1, the oldest plant. That will be moved to the new plant. I can't remember what the other plant was for... lamination possibly???

-B

[ajg617]

Its not just RV's, it's everything recreational.

It's everything. House two streets over last sold for $775K in 2017 (original purchase was around $400K new build 10 years back). $2.2M pending sale 2nd day on market (no, I don't live in that neighborhood). We kind of feel stuck in our house - which for the time is OK.

Same with an RV. Hear the quality, production, price concerns. Based upon age, we either do it now or never. I have no idea what a used inflated x year old RV will be worth in x years. But in my over 65 years, I've never seen consumer goods go down in price for an equivalent product.

So count me in as one who is paying an inflated price for an RV. But I wouldn't exclude the possibility that I won't get a decent resale price in the future. Nobody knows what's coming. A lot of talk of correction but what is happening now is unprecedented in my lifetime.

[ajg617]

That was on the Momentum line. I was pretty amazed. I would understand one here and there missing the mark, but this was on most of them on one side. And it wasn't just one, all 4 that were there were the same. It made me that it was supposed to be that way.... but I doubt that is true.

The new factories are in Middlebury (at least one of them is.) Momentums are built in plant 1, the oldest plant. That will be moved to the new plant. I can't remember what the other plant was for... lamination possibly???

-B

Sorry, but I hope the Solitude line is intact

I'm surprised they are not building factories in other locations. 2.8% unemployment rate will make it hard to fill jobs. When I site data centers, labor pool is key and diversified locations are mandatory. I understand the logistical reasons why they would do that given the proximity to suppliers but IMHO they are boxing themselves into a corner.

[Mulligan]

Interesting conversation. If it’s a 10% increase in price then add another 20% + on for the USA / Canadian dollar exchange rate for Canadian customers plus shipping costs.
Grand Design as well as other eastern manufactures are getting too pricey for us Westerners.
It would be nice to have a RV manufacturers out west.
Take care all
Coops