Recovery, Boomers Sending RV Sales Soaring
This spring, Jenny Miller and her husband bought a trailer to take their one-year-old son camping, but the plan had been in the works long before that.
“We had been talking about buying one for a couple of years, and we were just kind of waiting for our finances to get in order so we could make the purchase,” says the 29-year-old Davenport, Iowa resident.
As reported by U.S. News & World Report, Miller is representative of a broader national trend boosting the RV industry. Recreational vehicle sales crashed during the recession as Americans lost jobs and savings, but now, buyers are back and ready to make the RV purchases they put off for so long.
RV shipments dropped by over 30% in 2008 and again in 2009, according to figures from the Recreational Vehicle Industry Association. Annual shipments fell from nearly 400,000 per year in 2005 and 2006 to below 166,000 in 2009, forcing many dealerships and plants to lay off workers and some to close. But the RV industry soon rebounded, posting 46% growth in 2010. Since then, the increase has leveled off but remained strong, with manufacturers shipping nearly 290,000 units last year.
It’s not just that Americans are feeling more comfortable shelling out $15,000 for a camping trailer or $100,000 for a motorhome, says one industry expert. Banks are also now more willing to help customers buy campers and motorhomes.
“This industry was impacted by the economic crisis, as far as the drying up of consumer credit,” says Phil Ingrassia, president of the Recreation Vehicle Dealers Association (RVDA). “As things have improved, the economy has gotten better and there’s more credit available for consumer purchases like an RV.”
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