Industry Analysis & Industry Trends
The recession shook the Recreational Vehicle Dealers industry. Consumers suddenly lost a large degree of purchasing power as the value of their savings plunged in 2009. Also, crisis in the financial sector severely disrupted credit flows to RV dealerships, stifling RV purchasing activity. Beyond current economic woes, the industry is well situated for recovery. Despite difficult purchasing conditions, the RV lifestyle, defined by outdoor activities and domestic travel, remains popular with a key and growing demographic: baby boomers... purchase to read more
Industry Report - Starting a New Business Chapter
The industry experiences moderate barriers, including manufacturer franchise agreements and start-up costs. Dealer franchise agreements must be renewed annually, at the discretion of the manufacturer. The industry also requires high upfront capital investment in inventory purchases and dealership lots.
RV dealers need reliable financing arrangements, for inventory financing and customer loans. Most RV dealers purchase inventories on credit, referred to as floor plan financing. Additionally, RV dealers usually secure loans to finance customer purchases. Interruptions of these credit flows can disable RV dealers, as occurred from 2008 to 2009. In 2008 and 2009, turmoil in financial markets drove many financiers into bankruptcy, paralyzing the operations of their RV dealer customers... purchase to read more