Falling Prices on DP's?

[freestoneangler]

I've been coach hunting for a few years now and it seems to me that prices on DP's have fallen... particularly on the single rear axle 38+ foot models. Maybe it's just time of year or a batch of inventory that has issues warranting the price, but I'm still amazed at the amount of coach one can get presently for under $60,000.

 

Has anyone else noticed prices being lower than in recent years?

[Kirk W]

I haven't followed as closely as you seem to, but I thought that prices were moving up, at least in the new and near new side of the market. But your comment makes me wonder if it could be that with RV sales up the newer stuff is rising but RVs that are beyond the 5-7 year age are dropping due to more being sold or traded for newer RVs? It could easily be an availability thing.

[docj]

The DP market has changed rather significantly over the past ~15 years with many of the "luxury" brands (Country Coach, Beaver, etc) having gone out of business after the 2008 recession or having become pale shadows of their former selves (for example, Monaco). Class A coaches from the pre-recession era, including my own, are now approaching 15-20 years and, unless they have been well cared for, age-related deterioration will remove an increasing number of them from the marketplace. Even the well cared for remainder of the inventory are becoming old enough to deter many buyers, especially those not interested in refurbishing a coach that requires significant modernization. It would be only natural to expect the average selling price of these older DPs to fall over time.

 

Although RVIA no longer permits the public to obtain any detailed information from its shipment data, the last time I was able to see the detail it was clear that motorized vehicles of all kinds were <15% of total RV shipments. Of those Class A's represented ~1.5k/month nationwide. It's only natural to assume that those Class A deliveries are heavily weighted (numerically) towards the less expensive gas MHs because that's what more people can afford. So, it's safe to assume that new DP production is a pretty small number. Regardless of the absolute total number of units being produced, it's again only natural to expect that there will be, for example, more Newmar Ventanna's produced than there will be King Air's. So the average of new DP production is most likely to be in the "affordable" $200-400k range.

 

If there's any validity to what I've postulated, then we should be seeing a long term decrease in the selling price and number of older DPs available with resales of newer (post-2008) DPs having an average $$ value of less than the pre-recession DP average would have been. As a result there, indeed, should be an overall gradual reduction in advertised market prices of DPs available for resale.

 

Of course, all of this is pure speculation on my part and may be totally worthless!

[Kirk W]

Another factor that neither of us mentioned, but which does play a major role in the price most people will pay is the subject of financing. Very few if any lenders will finance any RV that it more than 10 years of age and if they do so it is typically for no more than 5 years. That tends to cause a big price slide as they cross the 10 year age line because lack of financing will either mean a lower price or fewer potential buyers, or both.

[docj]

Another factor that neither of us mentioned, but which does play a major role in the price most people will pay is the subject of financing.

 

Good point. It's always been my assumption that at least some of the high dollar MH's being sold before the 2008 recession were being financed through equity on homes either by outright sale of the home or via equity loans. With the housing bubble having burst, the number of people in a position to do this has been reduced at the same time that bank lending requirements have gotten more stringent. As a result, financing of higher end RVs of any age and type is more difficult. All of this acts to depress the prices sellers can get for their goods.

[bruce t]

Kirk's point is a valid one. I know of one dealer who shys away from anything over 5 years old. It's simply too hard to get 'reasonable' finance for old units. Thus the used market for older units is dominated by cash buyers who dictate the price.

[wildmandmc]

kirk, i think ya hit the nail on the head for sure. older units only get bought by cash only or high rates from some western banks. at last rv show. there was a brand new DP, (forgot the brand) was $199k. 40 footer. an you would think with diesel prices being (most places under 2 bucks, would normally drive DP units up a bit. but that isn't happening .

Well like i say many times with low gas prices, take it an enjoy as it not going to last a lifetime.

[dewilso]

I've noticed a larger demand for the smaller, 34-36' coaches, and a larger number of the 42-45' staying on the market longer. This is by scientifically spending hours analyzing the PPL web site...not.

[Ray,IN]

Additional factors include; extended service contracts usually end at 15 years old (GS in now 18), to a much lesser extent is the 10 yr rule in some upscale RV resorts, DP's are usually too long to access older state parks and some National parks and even some old private parks in snowbird destinations.

[Barbaraok]

Ray, our DP is 37' long, we have no trouble in state or national parks nor in private parks. Not all DPs are 45' tag axle coaches.

[pugsly]

As others have said, I think the ability for folks to purchase anything over 5 years old on credit is low and so a lot of potential buyers are forced into the new or newer because that is what they can get financed. RVing definitely seems to be on the upswing again if the RV shows are any guide, but for most people that means a TT.

[SIBERNUT]

For me at least, having to fool w/DEF and all the emissions crap on the recent diesels makes it a no-go for me. Ask the trucking industry where most of the (non-consumable, like tires)repair dollars go in their fleets- emissions repairs = $

[bags]

For me at least, having to fool w/DEF and all the emissions crap on the recent diesels makes it a no-go for me. Ask the trucking industry where most of the (non-consumable, like tires)repair dollars go in their fleets- emissions repairs = $

BINGO. Theres you answer.

[freestoneangler]

I've noticed a larger demand for the smaller, 34-36' coaches, and a larger number of the 42-45' staying on the market longer. This is by scientifically spending hours analyzing the PPL web site...not.

Looking a bit closer, I am seeing that as well. It looks like the units longer than 38' are waiting on the lots much longer and with lower price points. Wasn't it not that long ago that 38' was simply too small and they were advising not to get caught up in the "foot-itis" dilemma... go big early cause you'll eventually get there later. We Americans are such a fickle bunch.

[sandsys]

Looking a bit closer, I am seeing that as well. It looks like the units longer than 38' are waiting on the lots much longer and with lower price points. Wasn't it not that long ago that 38' was simply too small and they were advising not to get caught up in the "foot-itis" dilemma... go big early cause you'll eventually get there later. We Americans are such a fickle bunch.

Plus, I've noticed a number of full-timers are parking their Class A's and traveling in Class B's and C's now. Not sure what is behind this apparent trend.

 

Linda Sand

[freestoneangler]

Plus, I've noticed a number of full-timers are parking their Class A's and traveling in Class B's and C's now. Not sure what is behind this apparent trend.

 

Linda Sand

 

I know, that is kind of odd, particularly with the fuel prices being 50% lower than when the big rig craze was in full swing. Some of the deals on the 40'+ coaches are amazing. Do they know something we don't? Is the price of diesel going to hit $7/gal on the next cycle? Almost makes me want to buy several of these gorgeous units and wait for the trend to change again.