RV Sales Pump the Brakes

• RV sales plummeted to nearly half the volume compared to last year

• Towables, which comprise four-fifths of overall sales, fared worse

• Headwinds include the return to pre-pandemic travel patterns, more entertainment options, higher fuel prices, and rising interest rates   
   

Recreational vehicle (RV) sales plummeted to nearly half the volume compared to last year (-16% MoM/ -48% YoY/ -10% YoY3), when sales boomed as people opted for vacations that allowed social distancing and the van life movement gained popularity. Commonly referred to as an economic bellwether since the industry is sensitive to changes in the business cycle, the warning light is blinking on the dashboard.

Segmented into either towables or motorhomes, the former typically comprises roughly four-fifths of overall sales. Towables, designed to be mounted on wheels and towed by a motorized vehicle, fared worse (-18% MoM/ -54% YoY/ -18% YoY3). In response to softened demand, prices fell (-3% MoM/ -4% YoY/ -18% YoY3). Motorhomes also declined month-over-month (-9% MoM) but performed better compared to other time periods (21% YoY/ 47% YoY3). Corresponding prices demonstrated a similar trend (-7% MoM/ -1% YoY/ 47% YoY3).

Headwinds include the return to pre-pandemic travel patterns, more entertainment options, higher fuel prices, and rising interest rates. Notably, RV customers have historically had a better credit profile than auto customers. Within recent earnings, companies reported despite a tough demand environment, supply chain issues and raw materials costs are normalizing.