RV SALES SKYROCKET TO UNPRECEDENTED LEVELS
An increasing number of Americans are giving up societal norms and the conventional 9 to 5 lifestyle in exchange for life on the road, a trend that is most evidently seen by the currently unsurpassed growth of RV sales. In 2017, wholesale shipments reached a milestone of 500,000, an increase of 17.2% from the year before. The spike marks eight consecutive years of growth since the industry bounced back from effects of the Great Recession. And there’s no sign of a slowdown as we begin to successfully close in on this year’s projected number: 540,000.1
So what is causing this record-breaking boom in RV sales?
For starters, the age range is expanding. Although buyers ages 35 to 54 stand as the largest segment of RV owners2, there are a whopping 10,000 baby boomers reaching retirement age every day, eager to capitalize on the luxury of free time. And the market for millennials—the most ethnically diverse segment of RV buyers3—continues to increase as they turn away from material goods and set out on a quest for memorable experiences. According to a study conducted by Airbnb, most millennials plan on spending the next five years traveling rather than buying a home or starting a family.4 And the proof is in the numbers—millennials currently make up 38% of active campers nationwide.5
Travelers are also realizing that an RV purchase often generates extra cash in their pockets. A 2014 Vacation Cost Comparison indicated that a family of four can save up to 62% on vacation costs by traveling in an RV, even when factoring in ownership and fuel costs. Additionally, an RV investment can be a tax write-off since many RV buyers are able to deduct the interest on their loan as a second home mortgage.6
The increased yearning for wanderlust can also be attributed to technology and internet accessibility. RVing has shifted from an isolated experience to one of community building as more and more travel enthusiasts connect through social media platforms. Additionally, websites like hipcamp.com allow people to share their land with campers, creating sustainable revenue and unlocking access to over 300,000 parks and campgrounds—all with the tap of a phone screen. Data and internet access also fosters a growing remote workforce, enabling individuals to work on their own time and without the restraints of cubicles.
THE CHANGING FACE OF THE RV INDUSTRY TO MEET CUSTOMERS’ NEEDS
The Fleedwood Bounder of the 1980s may have had its fair share of glory days, but high-tech and fuel-efficient RVs are the driving force of today’s resurgence in recreational vehicles. RV manufacturers are producing innovative new products that offer an optimal mix of size, amenities and pricing. To cater to the millennial lifestyle, manufacturers are producing lightweight trailers and smaller, fuel-efficient motorhomes. And everything from solar panels to energy-efficient components are appearing on an increasing number of RV models.
But it’s not just about RVs. Optimizing the F&I department with a full suite of benefits is critical as vehicle service contract sales continue to climb. One of the reasons that customers are opting to add a service contract to their purchase is because the associated expenses tied to RV units can be steep—so a single repair is often all it takes for the coverage to pay for itself. Providing F&I benefits like vehicle service contracts, Guaranteed Asset Protection (GAP), tire & wheel coverage and appearance protection addresses the unique requirements of individual RV owners and provides them peace of mind as they embark on an exciting yet unscripted adventure.
EasyCare provides a full suite of the industry’s only Motor Trend recommended RV F&I benefits, along with a complete range of innovative dealer solutions—get more information at www.easycare.com/RV.
1https://www.rvia.org/business-indicators
22011 University of Michigan study of RV consumers commissioned by the RV Industry Association.
3“Understanding RV Consumer and Product Trends” report by SORP and RVIA
4https://2sqy5r1jf93u30kwzc1smfqt-wpengine.netdna-ssl.com/wp-content/uploads/2016/08/MillennialReport.pdf
5https://money.cnn.com/2017/11/30/investing/rvs-trailers-motorhomes-airstream-winnebago/index.html
6https://www.rvia.org/business-indicators
7RV Industry Association 2017 Annual Report
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