Black Book editor outlines trends in specialty markets > RV Daily Report |
By Ricky Beggs
Managing Editor, Black Book
Some people may have viewed the Beggs on the Used Car Market videos during the last two and a half years where we have given updates on the motorcycle and powersports markets, the medium and heavy duty trucks, collectible and exotic cars and even the RV markets – all specialty markets reported on by Black Book.
These markets are too important to be add-ons to the weekly auto focused updates. Our plan is to release a monthly video market update, giving viewers the latest in-depth insight into these specialty markets. They will be released to the media sources and also posted on the Black Book home page.
Recreational Vehicles
The RV market is making a major recovery from the economic crisis from 2008. New and used RV sales plummeted even more than the auto industry during the past few years.
The sales at special RV auctions continue to show strength as the 1- to 4-year old models are great alternatives to new. Eric Lawrence, the editor of the quarterly updated, electronic delivered RV Guide has been tracking the market for years.
“There is a lot of pent up demand out there. For the last several years, consumers have been holding back on big ticket items,” he said. “Many felt that the economy was too shaky to make a long term financial commitment, but the economy seems to have leveled off and is showing some signs of health, so consumers are starting to break out their checkbooks again and are buying some of the luxury type items that they had been holding off on.”
Motorcycles and Powersports
The motorcycle and powersports market has also reflected the improving economy with wholesale market values at auction showing some impressive trends and mostly increasing values.
Two wheeled street units are up almost across the board. Many 1- to 5-year-old Harley models are up 6 to 9 percent over the past month. One must keep in mind it is prime retail selling season just around the corner. Fortunately many lenders are easing up on credit criteria and are also buying much deeper down the credit score line. Like the car market, the supply of used powersports units at auctions continues to be lower than market demand.
Our market analysis even shows where some models are bringing about the same or even more at auction today than at this same time last year. For example, a 2008 Harley-Davidson Fat Boy was worth $12,815 in April 2010. Today that same bike is bringing $12,735, depreciation over the last year of only $80.
A few other examples where value is actually increasing are a 2007 Honda VTX1300 Retro model increasing from $5,085 last April by $610, to $5,695 today.
There are even metric sport bikes showing amazing retention value over the past year as we have a 2008 Kawasaki Ninja 650R up $205 from $3,830 to $4,035 in today’s market. Check out the 2007 Suzuki GSX600 which was worth $4,815 last year and now a year older and with more miles today, is worth $5,380. If you want and need used inventory, be ready to step up a little more than you would probably like.
Medium and Heavy Duty trucks and Commercial Trailers
The big truck industry, from medium duty to the over the road class 8 tractors, has also followed the positive value trending since the first of the year. Lack of supply is a partial answer for this market segment. Some buyers are taking care of their current truck and tractor needs and satisfying the 2007 emission requirements by purchasing used 2008 models instead of new.
As current ordered new trucks start to hit the ground in the next few months, it will be interesting to see if the even less expensive 2006s and 2007s, which should be the typical trade-in for these new trucks, will get enough used buyer attention to hold the strong values.
With more commercial business starting as we head out of the economic downturn, over the road tractors and commercial trailers, with increasing tonnage, have values showing greater demand and strength, as the charts show. There are increases of about $3000 on some 2008 long haul tractors and over $2000 on the complimenting commercial trailers.
Collectible Vehicles
The final specialty market also brings out a tremendous amount of interest from a very passionate group of buyers and sellers. The collectible vehicles in the Black Book CPI Value Guide have shown some strong values since the first of 2011, but not that many with ridiculous increases.
A recent sale of a Hemi Cuda Convertible which brought $1.7 million might be the exception to the majority of transactions. The mid-50s American Classics, with quality construction and timeless designs are getting solid interest and consistent retention values. With the majority of recent interest focused on musclecars, these had been overlooked in recent years.
The mid to late 70s models continue to gain interest as the coming collector models. Ten years ago this segment was the laughingstock of the collector industry. Today, many first time collectors are looking at these cars as a good entry point into the hobby or as an investment. The entry collectors may be looking at the 70s as these might have been their first car.
Buyers still have the upper hand in the collectible car market. But at least today, as the economy improves, the sellers do not have to adjust their expected values as much to complete the deal.
Ricky Beggs is the managing editor at Black Book, which is is widely known within the automotive and financial industries for publishing a family of highly respected electronic and printed vehicle valuation guides. He can be reached at rbeggs@blackbookusa.com.
Black Book editor outlines trends in specialty markets > RV Daily Report |.
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The term recreational vehicle is an incredibly broad one that includes everything from $10,000 tent trailers to $700,000 motorhomes. There are trailers and fifth-wheels targeted for every price range, lifestyle, towing capacity and family size, coming in every shape, size and options package imaginable.
The one thing they all have in common is they provide people with a chance to get away, have an adventure and enjoy the great outdoors.
Whether you’re the president of a company and you’re out there in your big motorhome or you’ve got a regular travel trailer and you have a young family, it’s an adventure. It’s an investment in your family for some; it’s a way of life for others.
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Tent Trailers
A popular choice for young families and first-time RVers, tent trailers are fairly inexpensive, easy to tow and can comfortably fit a small family.
Standard sizes for tent-trailer boxes are eight, 10 and 12 feet, with eight-footers reaching 17 or 18 feet when extended and 12-foot models extending up to 22 feet. These trailers can usually sleep six to eight people comfortably, and many come equipped with fridges, forced-air furnaces and stoves.
A well-equipped eight-foot tent trailer will cost around $9,000, which along with a tow weight of roughly 1,000 to 2,000 pounds (450 to 900 kilograms), makes them a very affordable choice.
Lightweight Trailers
Higher fuel prices over the last couple years have sparked a resurgence in the popularity of lightweight trailers, with more and more being built for smaller vehicles.
Lightweight trailers tend to range from 13 to 18 feet in length, and weigh around 3,500 to 4,000 pounds (1,590 to 1,815 kilograms). They range from couple’s trailers to family-oriented styles that can comfortably sleep up to six.
By having a hard wall instead of tent ends, these lightweight trailers can expand the RV season as they can more easily handle the early spring or late fall snow.
They are also fairly inexpensive, starting around $15,000.
Hybrid Trailers
Hybrid trailers combine the hard walls of conventional trailers with tent ends to create more space and provide more options. They’re popular because they give RVers the convenience of a conventional trailer, and are longer and larger than the lightweights.
The big advantage of hybrid trailers is that while they are small enough to easily tow at 18 to 20 feet and under 5,000 pounds (2,270 kilograms), they can expand to 27 feet or more. They are usually priced somewhere in the low $20,000 range.
Deluxe Fifth-Wheels
RVers looking for a top-of-the-line fifth-wheel can spend anywhere from $90,000 to $150,000. These trailers have the best and the latest in entertainment, with large bathrooms, full kitchens and bedrooms that would feel at home in a luxury hotel.
While there isn’t quite the selection that there used to be in these top-end models, a number of high-end manufacturers still offer plenty of good choices.
Conventional Travel Trailers
These are the trailers that most people think of when they think of trailers. It’s one of the largest subsections of RVs, and includes models that run anywhere from 18 to 39 feet in length. At the 20-foot-and-over range, there is also a wide array of fifth-wheels available, opening even more options.
Conventional travel trailers can be very well-appointed with sizable kitchens, living and bedroom areas, and offer a range of options in building materials, accessories and dimensions. Well-appointed conventional travel trailers start at about $20,000 and go up from there, while a fifthwheel with comparable size and features will usually cost $4,000 to $5,000 more.
Mid-range Fifth-Wheels
Mid-range fifth wheels are designed more for the long-term traveller than the weekend camper. These RVs are usually in the 30-foot range, and cost anywhere from $50,000 to $70,000. They have multiple televisions, premium stereo systems, large beds and everything someone needs for four-season living.
These are also the trailers of choice for many snowbirds, or for people looking to take their time exploring the country. These larger fifth-wheels often contain multiple slides to provide increased space. While they are a standard eight-and-a-half-feet in width for travel, sliders on either side of the trailer can be extended to provide a surprising amount of floor space, turning a 35-foot trailer into a roomy travelling apartment.
Motorhomes
There are three classes of motorhomes: Class C motorhomes look a bit like a small home attached to the back of a truck or van. They generally have a sleeping compartment above the cab, and a living area located right behind the cab. Class B motorhomes are van conversions — they look like a van but have modified sleeping and living quarters inside.
Class B motorhomes are between $80,000 and $100,000, while a Class C ranges from $65,000 to $100,000.
Class A motorhomes are the larger bus-like vehicles. These can start as low as $85,000 and go well into the $700,000 range and beyond. They can stretch to as long as 45 feet and include multiple slides to provide a huge living space.
2005 Fleetwood Pegasus 29BHS – RV Sales of Broward
2005 Fleetwood Pegasus 29BHS – $15,900
Model: 29BHS, Class: Travel Trailer, Condition: Used
Length: 29′ 0″
Exterior: white, Slides: 1
Sleeps: 8 people
Unit Description: light weight 2 bedroom travel trailer, 5800 pounds
Exterior Features: awning, shower, stereo with speakers, 2 large storage compartment
Living Area Features: 13′ super slide, couch, central AC/heat, stereo CD player, storage
Kitchen Features: 2 door ref, gas/electric water heater, stove/oven, storage
Bedroom Features: rear double bunks, front walk around queen bed, storage
Bathroom Features: Shower, toilet, sink, storage
Call Toll Free 888.587.3337 or 954.583.3382 ask for IVAN
2004 Fleetwood PACE ARROW 35 – RV Sales of Broward
2004 Fleetwood PACE ARROW 35 – $65,000
Model: 35, Class: Class A Gas, Condition: Used, Mileage: 3,500
Length: 35′ 0″, Exterior: WHT, Interior: green, Slides: 2,
Sleeps: 6 people
Fuel Type: Gas, Engine: 8.1 ltr., Transmission: Automatic, Towing Capacity: 5,000 lbs
Unit Description: Fleetwood’s best in gas powered, only 23500 one owner miles
Features: 2 slide out’s, workhorse chassie
Exterior Features: awning, large storage bins
Cockpit Features: driver’s door with power window, back up camera, leather driver and passenger seats
Living Area Features: large slide out, leather couch, recliner chair, 2 central AC’s, auto tracking satellite, VHS, DVD, home theater, 27″ TV
Kitchen Features: convection oven, stainless side by side ref with ice maker, corian counter tops
Bedroom Features: king bed, TV, closet space, drawers
Bathroom Features: glass shower door, closet space
Call Toll Free 888.587.3337 or 954.583.3382 ask for IVAN
Monaco 2004 safari SAHARA 40 – RV Sales of Broward
Monaco 2004 safari SAHARA 40 – $82,000
Model: SAHARA 40, Class: Class A Diesel, Condition: Used, Mileage: 32,000
Fuel Type: Diesel, Engine: 350 HP Cummings, Transmission: Automatic,
Towing Capacity: 10,000 lbs
Length: 40′ 0″, Exterior: gold, Interior: tan, Slides: 3, Sleeps: 4 people
Unit Description – diesel pusher, new batteries
Features – satellite system
Exterior Features – storage, power awning, slide out toppers
Cockpit Features – tire monitor system, CD stereo, back up camera
Living Area Features – computer desk, 40 LCD TV, sleeper sofa
Kitchen Features – large AC/LP ref, microwave/convection oven, stove, sold surface counter tops
Bedroom Features – queen size bed, TV, storage
Bathroom Features – glass shower door, storage
Call Toll Free 888.587.3337 or 954.583.3382 ask for IVAN
2004 Fleetwood Mallard 39′ Travel Trailer – RV Sales of Broward
2004 Fleetwood Mallard 39′ Travel Trailer – RV Sales of Broward
Trailer has queen walk around bed in front and 2 bunks and table in he back, central AC/heat, refrigerator, microwave, double sink, hot water heater, stove/oven, shower, toilet and can sleep up to 9 people.
Needs some TLC $6500.00 or best offer NEED TO SELL ASAP!!!!!
Call Toll Free 888.587.3337 ask for IVAN
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