RVDA Poll: Most Dealers Upbeat on Coming Year

Dealers surveyed in January generally have an upbeat outlook for the 2012 retail market and most feel their inventory levels are just right, according to the latest issue of RV Executive Today Online.

About 58% believe the RV retail market in January was the same as it was a year earlier, and 42%t believe it was better.

The survey showed that 75% of the respondents say there’s an adequate amount of credit available for inventory financing, and 71% say there’s adequate credit available for their retail customers.

For more survey results and charts, see the March issue of RV Executive Today, coming soon.

RVDA’s Molino to Retire, Ingrassia Will Succeed

Recreation Vehicle Dealers Association (RVDA) President Mike Molino announced today (Feb. 9) that he will step down after 16 years of service as the CEO of the organization. The RVDA board named Vice President for Communications Phil Ingrassia as the association’s next president, effective April 2.

“Mike Molino’s impact on RVDA and the RV industry will last for years to come,” said RVDA Chairman Andy Heck of Alpin Haus in Amsterdam, N.Y. “He has been a strong advocate for RV dealers since he joined the association in 1988 and became the chief staff officer in 1996. Mike was instrumental in developing a strategic direction for the organization that will shape RVDA far into the future. We are fortunate to have an experienced successor in Phil Ingrassia, who is well qualified to manage a smooth transition of staff leadership and set the stage for continued success.”

“For over 50 years, I have been lucky enough to have had continuous employment with only two employers, the U.S. Army and RVDA,” Molino said. “The nature of the work in both organizations provided opportunities to work for more than 50 different bosses and with many great people. The staff at RVDA present and past stands out as the best team of colleagues that I have ever had. I can’t thank them enough for their loyalty and support. I am especially indebted to Vice President for Administration Ronnie Hepp who has been with us for 17 of my almost 24 years at RVDA and Vice President for Communications Phil Ingrassia whom I recruited 16 years ago when I became CEO. My life epitomizes the adage ‘do what you love and you will never work a day in your life.’”

Molino continued “It is time for someone with new energy and ideas to head the staff of RVDA. Last year, I asked the RVDA Board of Directors to start the process of finding a new president. It makes me proud to know that they saw the same great value in Phil Ingrassia’s talents and skills that I enjoyed for the past 16 years. I am delighted with their selection. Although I plan to be active in a different type of work, I will remain available to assist RVDA President Ingrassia in any way possible for as long as he desires.”

During Molino’s years with RVDA, the association extended its leadership role in RV industry affairs through development of the association’s Model Dealer Agreement and the Dealer Satisfaction Index (DSI) survey. Molino was a key leader in the formation of the RVDA Education Foundation, now known as the RV Learning Center, and also a strong supporter of continuing education and certification for RV dealership employees. During Molino’s tenure, RVDA also played a key role in the formation of the Go RVing Coalition’s national advertising campaign, which is co-owned with the Recreation Vehicle Industry Association (RVIA). Molino is a Certified Association Executive (CAE) and was elected to the RV/MH Hall of Fame in 2006.

Ingrassia has served as RVDA’s vice president for communications since 2002 and joined the RVDA staff in 1996. He supervises the association’s membership, industry relations, market expansion and communications programs. He serves as RVDA’s staff liaison to the Go RVing Coalition and also earned the CAE designation.

“I am honored that the Board of Directors has chosen me to help lead the next chapter in RVDA’s history,” Ingrassia said. “Mike Molino has been an excellent mentor to me as well as to others on the staff and within the RV industry. I look forward to working with our volunteer leaders, members, business partners, and staff to advance the RVDA and the industry.”

 

 

 

RVDA: Notices Required for FEMA Trailer Sales

RV dealerships have recently been investigated for failing to pass along a required federal disclosure certificate when they resell FEMA units, according to the  latest issue of RV Executive Today.

The Recreation Vehicle Dealers Association (RVDA) reminded members that they are legally required to pass along the “Useable Travel Trailer Certificate” notice informing buyers that these FEMA units aren’t intended to be permanent housing.

The RV trailers that FEMA bought after Hurricane Katrina and auctioned off by the General Services Administration (GSA) require this special disclosure at the time of that sale and must be passed to all subsequent buyers.

Dealers should be particularly cautious of trailer trade-ins from 2005 and 2006 and the need to confirm the vehicles’ histories. A customer may “forget” to pass along the required disclosure to the RV dealer when trading in the vehicle for a new RV. RVDA said that the best way to research vehicle history is to run the VIN against the GSA’s database of Katrina trailers or ask the trailer manufacturer for a vehicle’s history.

Not all of the affected FEMA units are white boxy models – some were purchased directly from RV dealer inventory. RVDA said that relying on the vehicle’s title may not be reliable, since Katrina trailers weren’t titled until after their first sale at auction.

A similar issue is developing with oversized park model trailers that FEMA bought more recently and are now being auctioned through the GSA. Park models over 400 square feet must comply with HUD code, and as RVDA understands it, these oversized park models are not built to HUD codes. Customers may be unable to title these vehicles in their state, and they may run afoul of local building codes. Specifically, they may be unable to place these units in a zoned park model RV park.

All oversized compliant and non-compliant park models sold at GSA auctions come with a “Usable Park Model Trailer Certification” that the buyer must sign and pass along to all subsequent purchasers. The certificate disclaims government liability for any future issues arising from these vehicles. Dealers face liability if they fail to pass along the certificate.

 

RVDA: OEM’s Question Site’s Pricing Accuracy

RV manufacturers are telling the Recreation Vehicle Dealers Association (RVDA) that online dealer pricing figures released recently to consumers by SeeDealerCost.com are inaccurate, according to RVDA’s RV Executive Today online newsletter.

In addressing a press release generated by SeeDealerCost.com, RVDA reports that the one-year-old website is now listing what it claims are invoice prices and suggested manufacturer retail prices for several brands from Dutchmen Manufacturing Inc., Keystone RV Co. and Heartland Recreational Vehicles LLC along with a few models built by Jayco Inc., Forest River Inc., CrossRoads RV and Coachmen RV.

RV manufacturers told RVDA that they did not provide any pricing information to the website, and several questioned the accuracy of the data.

Dutchmen President Cam Boyer, Jayco Director of Marketing Sid Johnson, Heartland Vice President of Sales Coley Brady and Keystone Vice President of Sales Matt Zimmerman said they do not know where SeeDealerCost.com obtained its prices.

“The dealer prices quoted on the site for Jayco products are not correct,” said Johnson. “I don’t know where they got the numbers, but they did not get them from here.”

A disclaimer on SeeDealerCost.com also states the website is intended for use “as an online tool for consumers to obtain estimated pricing and costs. All such information is gathered from sources and/or based on algorithms or estimates. No assurance can be given that this information is accurate, complete or current.”

Heartland’s Brady said if a dealer was the source of pricing information, he or she may have violated the company’s dealer agreement.

RVDA Director of Legal and Regulatory Affairs Brett Richardson said, “It’s important for everyone in the RV industry to note that invoice pricing information is sometimes addressed as confidential in manufacturer-dealer agreements. Sharing it with a third party could be a breach of the agreement and lead to termination for cause.”

RVDA urges dealers to review their dealer agreements and state laws on this issue. “Many states prohibit or restrict a motor vehicle dealer’s ability to directly or indirectly advertise ‘invoice prices,’ since they believe this advertising may be deceptive to the buying public,” said Richardson.

 

 

RVDA: Mike Molino’s Mother Passes Away at 98

Editor’s Note: The Recreation Vehicle Dealers Association (RVDA) issued the following concerning the passing of long-time President Mike Molino’s mother on Monday (Jan. 23).

Jennie Molino (nee Tepedino), wife of the late Angelo T. Molino, passed away peacefully at the Willow Oaks Assisted Living facility in the presence of family on Jan. 23. Born on May 10, 1913 in Brooklyn, New York, she grew up with 12 siblings; all but one, her brother Louis, have pre-deceased her. She married Angelo “Tom” Molino on Sept. 18, 1938 and they were together for 49 years until his death on Jan. 9, 1988.

The Molino’s moved from Brooklyn to Bayonne, N.J., and then to Springfield, Va., in 1984. Jennie was active in the Vincent F. Atene Post #3230 VFW Ladies Auxiliary and the “Forty Niners’ Group” at St. Bernadette Parish. She is survived by her three sons, Mike (Barb), Tom (Mary, known as Cissie to family), and John (Eileen); seven grandchildren (Mike, Andy, Tim, Bill, Chris, Sara and Matt); and six great grandchildren (Bella, Isabella, Alana, Spencer, Emaline and Cooper).

A viewing for family and friends will be held at the Everly Funeral Home on Main Street in Fairfax (date TBA), and a Requiem Mass is planned for St. Bernadette’s RC Church in Springfield, Va. (date TBA).

She will be buried with her late husband in Arlington National Cemetery. In lieu of flowers, the family asks that you consider a donation to Wounded Warrior Project to honor the more than 100 years of active military service she supported as wife, mother, and grandmother. (Wounded Warrior Project, 4899 Belfort Rd, Suite 300, Jacksonville, Fla.,  32256, or the Birmingham Green Foundation (8605 Centreville Rd., Manassas, Va., 20110).

 

 

Learning Center Scholarship Program Available

The RV Learning Center scholarship program awards a $2,500 scholarship annually to deserving college sophomore, junior and senior undergraduate students majoring in business, finance, economics, accounting, or other RV-related subjects. Dealers and other industry partners are able to offer this opportunity to their team specifically because of their employment in the RV industry.

Scholarship applicants must:

• Have a 2.8 or better cumulative grade point average, and a 1050 minimum SAT score (1575 minimum on the 2400 point scale). A minimum ACT composite score of 22 is also acceptable.

• Be a rising sophomore, junior, or senior college undergraduate student.

• Complete a 500-word essay on their goals and objectives for attending college.

• Submit a copy of their Free Application for Student Aid (FAFSA) form which is available from guidance counselors or for download at no charge from the U.S. Department of Education at www.fafsa.ed.gov.

• Demonstrate the ability and willingness to fund a portion of their educational expenses on their own.

• Attend an accredited four-year college or university as a condition of receiving the scholarship.

All items must be submitted by June 4. Dealer principals, their family and dependents, are not eligible. A four-color poster describing the RV Learning Center scholarship program suitable for display in employee break or lunch areas is also available to download at www.rvlearningcenter.com.

The scholarship program is possible due to the generosity of the Newt and Joanne Kindlund Family. The Kindlunds are the founders of Holiday RV Superstores — the first publicly traded RV dealership. The Kindlunds sold the company in 1999. Newt Kindlund remains an active participant in RV industry affairs and currently serves on the RV Learning Center board. The Kindlund Family has fully funded the $270,000 foundation scholarship endowment.

For more information on the RV Learning Center scholarship program, send an e-mail to info@rvda.org or visit www.rvlearningcenter.com. The RV Learning Center is a tax-exempt organization as described in section 501(c)(3) of the Internal Revenue Code. Contributions may be tax deductible as charitable donations.

Mo. Dealer Patton Donates to RV Learning Center

Russ Patton of Byerly RV Center in Eureka, Mo., has donated an additional $10,000 to the RV Learning Center, bringing the dealership’s total contribution to $36,000. Byerly RV Center is celebrating its 65th year of serving customers this year.

“Russ Patton is a long-time supporter of the RV Learning Center and its continuing education programs for RV dealership personnel,” said RV Learning Center Chairman Jeff Pastore of Hartville RV Center in Hartville, Ohio, in a press release. “We appreciate his generous contribution which will help advance education opportunities for RV retail employees and improve customer satisfaction in the industry.”

The RV Learning Center is dedicated to providing dealers and their employees with innovative ways to operate RV dealerships through an array of education resources including publications, distance learning, live workshops, online products, training and certification programs for RV dealership personnel.

For more information on the Foundation’s RV Learning Center, visit www.rvlearningcenter.com, send an e-mail to info@rvda.org, or send a fax to (703) 359-0152.

 

New ‘Away’ Campaign to Generate Dealer Leads

RV dealers can access leads generated through Go RVing by signing up for the optional Leads-Plus program. For more information, click here.

“The goal is to make the site our workhorse, delivering relevant information and engaging content to prospects and helping them move along the purchase process,” says Stan Richards, founder of The Richards Group, which developed the “Away” campaign.

The storytelling aspect of the new ads serves an important purpose. “The audience sees people just like them, spending time with loved ones in picturesque locations,” says Richards. “These locations are off the beaten path, yet completely accessible, and viewers see the RV as the hero that allowed the families to get there.”

All of the ads, whether print or electronic, “feature a strong call to action, encouraging viewers to visit the website to find a dealer and the RV that’s right for them.”

 

FTC Ups Scrutiny on Dealer Advertising for 2012

Dealers should review their advertising immediately to ensure it includes all federally-mandated credit terms and disclosures. According to a news release from the Recreation Vehicle Dealers Assocation (RVDA), the Federal Trade Commission (FTC) has stated it plans to more vigorously prosecute deceptive dealership advertising this year while it reviews what, if any, additional regulations are needed.

Greater FTC scrutiny of dealership marketing and F&I practices was the trade-off for exempting dealers from oversight by the Consumer Financial Protection Bureau.

The Truth in Lending Act (TILA) and its implementing regulation, called Regulation Z, require that certain information be disclosed to consumers so they can compare credit offerings and shop for the best terms. Previously, advertisers could distort the true cost of the credit by publicizing only the most attractive credit or lease terms in order to get customers into the dealership.

For example, an RV advertisement might have read, “1968 fifth wheel–only $75 per month.” But the consumer couldn’t determine whether it was a good deal without knowing the down payment, number of payments, annual percentage rate and whether the transaction was a credit sale or a lease. TILA requires that advertisements tell the whole story.

If an advertisement contains certain trigger terms, it must also include certain additional information. Regulation Z trigger terms are:

• The amount or percentage of a down payment (i.e., “10% down,” “ $1,000 down,” “90% financing,” “trade-in with $1,000 appraised value required”).

• The amount or percentage of any payment (i.e., “monthly payments less than $250 on all our loan plans,” “pay $23.44 per $1,000 amount borrowed,” “$210.95 per month”).

• The number of payments.

• The period of repayment (i.e., “up to four years to pay,” “48 months to pay”).

• The amount of any finance charge (i.e., “financing costs less than $300 per year,” “less than $1,200 interest”).

If any of those trigger terms are used in an RV sales ad, then all of the following disclosures must appear clearly and conspicuously near the trigger term:

• The amount or percentage of the down payment.

• The terms of repayment (i.e., the number amount and timing of payments).

• The annual percentage rate, which may be abbreviated as “APR” (Dealers also must disclose if an APR can be increased after the credit transaction is complete).

The type of transaction you advertise — closed-end credit, open-end credit, or a consumer lease — determines whether a term is a triggering term and, if so, what disclosures are required. There are similar requirements for advertising an RV lease under Regulation M; however, RVs are infrequently leased to consumers.

For more information, contact Brett Richardson at Info@RVDA.org.

A Big Change Afoot for Three National Shows?

The industry’s quest for a more logical, efficient and timely approach to national trade shows could well lead to the consolidation of all three key current industry events as soon as 2013, RVBUSINESS.com has learned.

Much of the buzz among trade groups and key manufacturers like Thor Industries Inc., based in Jackson Center, Ohio, and Forest River Inc., headquartered in Elkhart, Ind., centers around a relatively early fall date in a centrally located city like Indianapolis.

Could it actually come to pass?

Well, it’s all talk at this point, we’re told, but it’s reportedly more than a casual conversation, as representatives of the Recreation Vehicle Industry Association (RVIA), sponsor of the annual National RV Trade Show in Louisville; the Recreation Vehicle Dealers Association (RVDA), host of the annual RVDA Con/Expo in Las Vegas; and manufacturers supporting Elkhart County’s Annual RV Open House Week have formed a joint committee to look into the matter.

And there seems to be an atmosphere of compromise in the air.

“The way I look at it is that it’s a lot of peoples’ votes here, you know, and I’m open to whatever’s good for the dealer,” said Forest River President & CEO Pete Liegl, who spearheaded the first Open House Week four years ago. “Obviously, the dealer comes to the Open House. He goes to Louisville. He goes to RVDA. He’s got other functions, 20 groups and all that, and he or she is probably traveling a little more than they want.

“So, whatever we do, I want it to be good for Forest River. I also want it to be good for the dealer and I also want it to be good for the industry.”

Both associations apparently are taking an active role in these preliminary discussions. And while neither is saying much at this point, both agreed to issue written statements in response to RVBUSINESS.com’s inquiries that tended to confirm the perception that both trade groups are keeping an open mind with regard to a topic that only months ago would have been widely viewed as a hot potato.

“Clearly, the role of the trade show is evolving in our industry and in many others as well,” says RVIA President Richard A. Coon. “It is incumbent upon RVIA as an association to play a leadership role in shaping and protecting the RV industry’s future, and one such area is the national show.

“Findings from our research indicate that the industry feels strongly that a national show is a benefit to the industry,” he added. “That said, we realize that some changes are needed to ensure we are best serving our members and the industry as a whole. Therefore, RVIA is having conversations with executives from across the industry to examine the potential size, scope, timing and location of an all-industry event that would better serve the industry’s needs.”

RVDA President Mike Molino sent a similar signal in his prepared statement.

“RVDA is a dealer-driven organization,” said Molino. “The volunteer leaders and staff are truly committed to doing what is best for RV dealers and the industry. More and more dealers are telling us they want us to be as efficient as we possibly can with their time and money. We are listening. We believe we would be negligent to our obligations if we did not look for better ways to schedule shows and make our RV Learning Center programs accessible to more dealers. We look forward to exploring opportunities with our industry partners at RVIA.”

Bob Martin, president of Keystone RV Co., Thor’s largest division, says he’s “definitely open” to considering alternative approaches after comparing notes with a wide variety of industry factions – keeping in mind that, due to current facilities commitments, the soonest a real change could take place would probably be 2013.

“You know, it actually came up at RVDA in our Partners in Progress meeting,” said Martin. “The dealers are throwing out many different ideas of whether you combine one or two of the venues or change the time of year. So, for us, we’re going to do what’s best for the dealers, and if there’s a way to combine, we’d definitely be open to it because it (the current situation) is a huge drain on us financially, a drain on our time – having Louisville, Open House and RVDA. And, you know, I was gone all of this past fall (at shows), and it just makes it very tough on your family life as well.”

 

 

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