Casa Grande, Arizona: RV Industry Feeling Economic Pressure

Yesterday Mary Lynn and I drove up to an RV dealer about 45 minutes north of Casa Grande. One of the largest dealers in this area and probably one of the biggest dealers in the country. They have a huge facility with ~15 service bays and a sales lot that seems to go on and on.

I've seen pictures of their sales lot almost full of RVs but not now. They have the RVs arranged in big star patterns with lots of room in between to make the lot appear less empty however there was no denying just how few units they have. And many of the units on the lot were 2008 models, not the new 2009 models.

We drove up yesterday in search of a bracket to hang a bicycle from the RV's rear ladder (not that the RV has any other ladder) however when we arrived we were told the parts department had already closed.

So we decided to look at a few of the RV's. One of the brands carried by this dealer is Country Coach, a fairly high end RV manufacturer. Late last fall CC sent about 500 workers home early for a long break over the holidays and has not called them back to work. Last week they told the employees to come and pick up their personal effects.

One source indicated CC had been unable to obtain additional financing and would declare bankruptcy. CC lawyer says no, everything is fine and they are not filing for bankruptcy. Heck, even the CEO & founder told the employees they should be looking for other jobs. And still the lawyer is saying 'no bankruptcy'. Not sure what the game is however most people don't believe the lawyer -- go figure.

The downturn in the economy along with last year's spike in fuel costs has been a devastating one - two punch to the RV industry.

If you are in the market for an RV there are some terrific bargains out there. Discounts of 30% and more are pretty common. I've seen some discounts as high as 50% off msrp. Just make sure you are not buying one of the orphans, that is, one of the RV's made by a manufacturer who is no longer in business. Your warranty will be absolutely useless if they have gone out of business.

The industry itself will survive although with far fewer manufacturers than in the past. Actually, the consolidation that is occurring will probably help the industry in the long run however it will be brutal getting to that point.

As for the dealers who make their living by selling RV's? Well, I heard someone say being an RV salesman currently is like being a Christmas Tree vendor on December 26th.

Now it may not be that bad however no one is buying without driving a very hard bargain. And that is always tough for individuals paid on commission. The more profit in the deal the more the salesman makes -- and right now there just isn't as much profit in the deals.

Again, much like the housing industry, this is a great time to buy a new or used unit. Not a good time to be selling.

As for MLA & I, we are very happy with the Tiffin we own currently and seeing as much of the country as we can. Well, actually we are staying in Arizona for two months this winter however we are seeing a lot of southern Arizona while we are here.

See Ya!