RV industry optimistic that economic stimulus plan will drive sales rebound

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Tire dealers and repairers catering to RVers will be pleased to know that the Recreation Vehicle Industry Association (RIVA) is expressing optimism that the stimulus package will help promote motorhome sales and aid in the industry’s economic recovery.

Like many of the nation’s manufacturing sectors, the RV segment has experienced a sharp decline in sales, resulting in plants being shuttered and workers laid-off. RIVA anticipates that the stimulus package may help restore consumer confidence by staunching job losses – and stimulating people to hit the road in a gleaming multi-tired RV offering all the comforts of home.

“We’re hopeful that the stimulus will work as planned,” says Richard Coon, RIVA’s president. “It contains favorable elements that we hope will help improve the economic environment for our industry and stimulate RV sales.”

A provision in the stimulus bill provides a deduction for sales or excise taxes on the first $49,500 spent on a new motorhome purchase.

“This is the kind of consumer incentive that also will stimulate demand in what is already an RV buyer’s market with great bargains for consumers,” Coon notes.

Also, the inclusion of RV consumer loans and dealer floor plan loans in the Term Asset-Backed Securities Loan Facility (TALF) could ease credit and stimulate RV lending.

“Getting RV consumer and dealer business loans added to the TALF program is a big step forward for the industry,” says Coon. “TALF will help allow qualified dealers to purchase RVs from manufacturers, and consumers to borrow money to buy RVs. As credit frees up, RV sales will increase and the industry will rebound,” he adds.

“Core demand for RVs remains robust,” according to Coon. “Attendance at RV retail shows throughout the country has exceeded expectations, but even buyers with strong credit histories have not been getting approved for loans. In addition, RV dealers haven’t been able to secure business loans to buy inventory.”

Reports from the RV expos indicate that shoppers are impressed with new RV models that are smaller, lighter and more aerodynamic and fuel-efficient than previous editions. Coon is optimistic that when the economy improves, credit eases and consumer confidence increases, the industry will recover healthier than before.

“RVing is a tremendously popular lifestyle that will endure despite these tough economic times because it’s the most cost-effective way for families to have a great vacation,” he says. “Encouraging retail traffic and the innovation going on within our industry are signs that the long-term outlook remains positive.”

Fleetwood Enterprises’ RV Group has announced that it will commemorate its 60th anniversary during the June 27-30 Fleetwood MotorHome Association’s (FMA) “Wind Your Way to Wyoming” national rally in Gillette.

The exclusive motorhome event will be held at Gillette’s CAM-PLEX, which features more than 1,700 campsites with full RV hook ups and a 177,000-sq.-ft. convention center. It’s located near several U.S. tourist attractions such as Mount Rushmore, Devils Tower and a variety of state parks.

Recently added to the agenda are a driving seminar and behind-the-wheel training sessions taught by Gary Lewis, owner of RV Basic Training, LLC. The seminar “10 Things You Need to Know to Drive Like a Pro” will be offered to all rally attendees at no charge. The “Behind the Wheel” driving school, which teaches vehicle owners how to safely drive their coaches, is available for $65. Classes geared exclusively toward women will also be provided.

Other event highlights include: