A question for Ken(GTS) & other dealers....?

[Kirk]

From all that I have been reading in the financial columns and the RV business publications, the biggest problem at present for new RV sales is the acquisition of customer loans. What has been your experience, and how do you see things playing out in the near future?

Any thoughts or comments about your experience or the word in dealer circles would be welcomed.

 

[Grandview Trailer Sa]

Re: A question for Ken(GTS) & other dealers....?

That is true Kirk, You have to have excellent credit these days. I heard yesterday that a local bank here in town has stopped doing vehicle loans of any kind...Cars, Trucks, you name it.

Some dealers that have credit lines with old established companies have their credit frozen right now. I was told that a dealer in PA sold 6 trailers at a show and his credit company took the money for them and then froze that amount also. He can't even replace his inventory. Maybe he has a credit problem, I don't know that side of the story.

At some point someone, "smart" in the wheels of govt. will have to realize that this economy is based on people spending money. If the media would lighten up and tell some good news, that might help. Right now people are running scared and I think that is one reason (of many) it is getting worse. How long is that gonna take, I don't know. I wish I had a crystal ball on that one.

I have 2 people coming in today to look at trailers. They are both bringing cash. Wish me luck!!

 

[DL Rupper]

Re: A question for Ken(GTS) & other dealers....?

Credit is tight right now. We have excellent credit and don't owe anybody anything. Our new/soon to be maybe Condo loan is for about what a big 5th Wheel would run with 5% down. They are all concerned where the 5% down is coming from (at least we didn't need 20% down). This is a credit union we have belonged to for over 30 years.

When I was working (many moons ago) I was buying 2 cars and paying on a big Condo and was buying a house before the Condo was sold. I didn't make a whole lot more then than I do now retired. Congress did a number on us when they forced the banks to loan mortgage money to anybody whether they had a job or good credit :dead:

 

[H2H1]

Re: A question for Ken(GTS) & other dealers....?

DL you are correct on that and to add to it, you had to show where it was going before you got it. But now big O and gang are just given it out with no idea where it is going or for what. We all know it was suppose to ease up the credit crunch, but from listening to some of my friends that hasn't happen yet. MY daughter is in the mortgage business and only if you have money and a great credit score you will not get a home loan. So credit will remain tight for most, sure glad my MH and truck is paid for.

 

[rjf7g]

Re: A question for Ken(GTS) & other dealers....?

Interesting information here...I just have one question. Where is all of the money going?

 

[Grandview Trailer Sa]

Re: A question for Ken(GTS) & other dealers....?

Damn good question....Problem is, no one knows, not even the ones passing it out.

 

[H2H1]

Re: A question for Ken(GTS) & other dealers....?

lavish parties at some of the most expensive motel in vagas, plus large pay out to the worthless CEO's

 

[elkhartjim]

Re: A question for Ken(GTS) & other dealers....?

The money the banks received from the feds went to shore up their balance sheets from all the bad loans they made a few years ago. They had low cash reserves and now that they have some cash they are going to be very stingy with it. A car dealer in the Houston area went belly up this week. Had been in business since I believe 1949 and had Chevy, Ford, Cadillac and Hyundai (sp). At one time they were the largest Chevy truck dealer in the nation selling 9000 units/year with 40 acres of inventory. Rumor has it they owed Ford $8 million for floor plan. I'm afraid its going to get allot worst before it starts to get better.

 

[*scooter*]

Re: A question for Ken(GTS) & other dealers....?

It seems like everyday in the paper there is some bank getting caught with wild expenditures. Partys to Vegas, hotels, entertainment. I don't know how they get away with it. After they get caught, only then do they cancel the event, then they report that there will be millions in cancelation fees (as if that's going to make us feel bad). If the money is going to the banks to free up loans, then why are loans so hard to acquire? I just don't know... :dead:

 

[*scooter*]

Re: A question for Ken(GTS) & other dealers....?

Another thing.... there aren't a whole lot of RV dealers ouththere today. Only a few you can trust to do a good job. Then, they are folding up, making it harder for us to find another dealer and having to drive a greater distant for even some of the simple services. I, better go to another thread to get my blood pressur down.

 

[Kirk]

Re: A question for Ken(GTS) & other dealers....?

Ken, do you think that the sales are out there, if credit were more available to the truly credit worthy?

Hope that cash sale went through for you.

 

[Grandview Trailer Sa]

Re: A question for Ken(GTS) & other dealers....?

I have people looking and yes, I think the sales are there. One sale is going through I believe, not counting on the second too much.

 

[WildWillyToo]

Re: A question for Ken(GTS) & other dealers....?

We managed to make a decent number of sales at the New England RV & Camping show this past weekend.
The customers are out there & banks are lending (although with stricter guidelines).
I think it's going to be a tough few years. The well established dealers, with a good reputation, should weather this just fine.
It would help if buyers stayed away from the &*$#@*^ wholesalers though! We just can't compete with them and still give top quality services!!

 

[rjf7g]

Re: A question for Ken(GTS) & other dealers....?

I am going to the show in Richmond this weekend...it will be interesting to see the mood there. Last year, there were a lot of sales that went down. We'll see. I am just going to look for mod ideas and fodder for dreaming. I doubt if there will be a Gulfstream Silver Bullet there and that's my current thinking for a next purchase. :laugh:

 

[DL Rupper]

Re: A question for Ken(GTS) & other dealers....?

Tell the folks in Elkhart, In there isn't a problem. Highest unemployment (15%) in the nation thanks to the RV industry down turn. Last year they were at 4.7% unemployed.

 

[H2H1]

Re: A question for Ken(GTS) & other dealers....?

DL I think what happen in Elkhart was last year high cost of gas and diesel fuel, which backed any serious buyer off. I feel if gas and diesel would STABILIZE at a decent price, we would see more people buying, but with and uncertain future I doubt that going to happen. Just look at gas prices now it has gone up .16 cents in 2 weeks. I don't think we will see the end until it back up again AND EVERYONE starts screaming again.

 

[DL Rupper]

Re: A question for Ken(GTS) & other dealers....?

I don't think it's going to get too high anytime soon. The recession is World wide and demand for oil/fuel is down. Now if the Oil Cartel can lower the oil production enough to raise the price of a barrel of oil, then it will go back up. JMO. I still subscribe to DRILL BABY DRILL. :laugh:

 

[campers4u]

Re: A question for Ken(GTS) & other dealers....?

Lot traffic is starting to grow, folks are out looking but getting a loan is hard with out a 650 or above credit score. what i am running into are folks wanting to trade a 05-06 unit in that had a 15 year note and want what they still owe on it,, not what its worth. Its hard to tell them there TT is worth 7-8k when they still have a bank note for 12k.. but on the other hand the folks with good credit are finding out thats its a buyers market and they will get a deal

 

[WildWillyToo]

Re: A question for Ken(GTS) & other dealers....?

The gas price problem this past summer certainly made it's mark on the rv industry. However, the problem is much more than just fuel costs.
About 60% of our travel trailer sales have been to people that will never tow them. We deliver and set them up at a campsite and they use it like a second home. This has been a trend (at least here in the northeast) for the last 20 years, or so. The majority of those customers travel less than 100 miles to get to their trailer. The cost to get back and forth, even with the high summer gas price, is minimul yet we saw a HUGE decline in sales. This tells me that the problem is deeper rooted than just fuel costs.
Personally, I think the media is the biggest problem. They start yapping and give people the impression that doomsday is approaching. So, everybody gets nervous, tightens up their bootstraps and holds onto their money, the economy feels the pinch of less spending, the banks get stricter so the people that want to spend can't...etc. It ends up snowballing into what we have happening now.
Anyways....yes, lot traffic is increasing here too. Lots of phone calls and email inquiries in the last week......it's encouraging. Hopefully this year will be better than last.....we will see!

Good luck to my fellow RV Dealers! May we all have a good selling season!

 

[DL Rupper]

Re: A question for Ken(GTS) & other dealers....?

Hope it turns around for you RV dealers.