Posts Tagged ‘RV industry’

According to press reports, the Super Committee is eyeing elimination of the second home mortgage interest deduction as part of a package of spending cuts and tax increases aimed at closing the federal budget gap. RVs qualify for a second home mortgage interest deduction because they are a very popular weekend and vacation “home” for middle class Americans, according to a news release. The second home mortgage interest deduction serves as a powerful incentive for consumers to purchase RVs.

To preserve this important industry sales tool, the RV industry has launched a Congressional e-mail campaign aimed at preserving the deduction. With the deadline for the Super Committee looming, the industry only has this week to influence the U.S. Congress.

In order to expedite and simplify the RV industry’s communication with Congress, RVIA is urging industry members and RV owners to visit RVACT at www.rvact.com which contains all the tools needed to let members of Congress know their feelings about any effort to repeal the second home mortgage deduction as it applies to RVs.

Available at the site are a letter for generally interested parties, a letter for dealers, and a letter for suppliers and manufacturers to send to Congress. All of the letters are completely customizable so that interested parties can add specific information and views on the proposal. By entering their name and address, the site will automatically match the individual with their Senators and Congressman and have an email sent to their office.

Once the Super Committee makes its recommendations there is likely to be an up or down vote on the package, so it is seen as critical that any views for input be made before the Super Committee’s deadline.

The recreational vehicle industry and the housing market traveled much of the same road during the last decade.

And when the housing market crashed, the RV industry suffered a similar fate.

Now the RV business model has changed dramatically: Much like the housing market, bigger no longer is necessarily better.

Bus-like gas and diesel motorhomes — many carrying six-figure price tags — dominated dealer inventory five or six years ago. Today, north state lots are full of fifth-wheels and travel trailers.

“The mix for big dealers used to be 70 percent of sales would be motorhomes. . . . Now it’s 30 percent motorhomes and 70 percent fifth-wheel and travel trailers,” said Wayne Barnes, owner of B&B RV Center in Anderson, California.

Not only do the smaller RVs cost a fraction of a new motorhome, but there can be a savings in gas to pull a trailer.

“There was a time that if we saw one tent trailer a month, that was a lot. Now we have two or three tent trailers coming in to be repaired,” said Tom Williams, who has owned Northern Trailer & RV Supply in Redding since 1974.

While the RV industry is still down from its peak in the middle of last decade, sales have started to rebound.

The RV Dealers Association expects 260,200 units to be shipped in 2011, a 7 percent increase over 2010, but down from the 390,500 motorhomes and travel trailers that were shipped in 2006.

“It has become more of a motorized towable industry,” RV Dealers Association spokesman Phil Ingrassia said. “It used to be that between 20 and 25 percent of RV shipments were motorhomes. Now it’s less than 10 percent.”

Full Story…

Starting July 1, Ontario drivers can tow recreational vehicles if they have a full class G licence. This will make it easier for Ontarians to travel this summer and save RV owners about $200 in initial licence costs, according to a government news release.

Until now, Ontario drivers have needed a class A licence to tow RVs that weigh more than 4,600 kg. (10,120 pounds). With this change, Ontarians can tow and operate RVs with a full class G licence as long as:

• The combined weight of the motor vehicle and RV is not more than the current 11,000 kg limit (24,200 pounds).
• The RV is attached to the motor vehicle by a fifth-wheel hook-up.
• Only one vehicle is being towed.
• The RV meets Transport Canada manufacturing standards.
• The RV is being towed for personal use only.

These changes will make it easier for Ontarians to travel with RVs, support the province’s RV industry and promote tourism, while keeping roads safe.