2023 Used RV Prices: Soaring or Settling?
We’ve written about RV prices a couple of times in recent years. It’s been a roller coaster for RV sales since 2020. The pandemic brought a surge in interest and a shortage of new vehicles. It also brought a shortage of parts for used vehicles.
COVID-19 touched every part of the RV industry. From soaring prices to supply chain issues and shipping delays, it has been quite a ride.
In 2020, with lockdowns and production shutdowns, RV sales still increased 6% from 2019 to a little over 430,000 shipments. The desire to travel safely and be outdoors made RVs a popular choice. In 2021 that number skyrocketed to over 600,000 RVs shipped.
That massive increase in demand was reflected in increased prices for both new and used motorhomes and travel trailers. Even with so many RVs shipped, manufacturers could not meet demand. Used RVs were in short supply.
Now that the pandemic appears to be waning, at least for now, it’s time for a few predictions for the upcoming year. What will used RV prices look like in 2023?
There are no absolutes. No one can promise how the market will evolve. But we’re going to take a look at some signs that buying a used RV may be getting a little easier and a little less expensive.
Loaded RV Lots in 2022
We predicted that 2022 would see an easing of the tight seller’s market of 2021. And that is indeed what came to pass.
The empty RV lots of 2020 and 2021 slowly gave way to more inventory. There were two main driving factors in allowing supply to catch up with demand. Simply put, demand decreased and supply increased!
But why?
2022 Supply
Manufacturers who were facing large backlogs of orders throughout 2021 finally began to catch up. Supply chain issues eased and parts became available again. Shipping delays eased and dealers were able to restock their lots.
The result was reduced pressure on the used RV market. Buyers who wanted new RVs could find them. Used RV buyers had more choices in more locations.
2022 Demand
So where are all those used RVs coming from? As predicted, some of the pandemic buyers are now post-pandemic sellers. Some returned to air travel, others discovered that RV life wasn’t for them.
As life slowly returned to a rhythm resembling pre-pandemic times, families were not as desperate to get out of their homes. Their vacation options opened up. Some of those RVs that were lifesavers during travel restrictions hit the market.
The Economy Hits RVs in 2023
The used RV market has been a solid seller’s market for over two years. There are fears that this “bubble” is going to burst and send prices plummeting. This is great if you’re buying an RV, but not so much if you’re selling.
Some people are worried that the expensive rigs they purchased during the pandemic are going to be tough to sell. Others are concerned with high fuel costs curtailing their RV use.
The economy has come into play for 2023 used RV price predictions.
Interest Rates
If you bought an RV in 2021 and took out a loan, your interest rates were extremely low. Interest rates have risen 2.25% in 2022. That means buyers are faced with higher loan repayment costs.
Those buyers may choose not to enter the market.
Inflation
Driving the increase in interest rates is a high rate of inflation. This is something we haven’t seen much in the past 20 years or so. But since the spring of 2022, inflation was impacting the U.S. and countries around the world.
This is not, perhaps, surprising. A global pandemic is a shock to the global economic system. That kind of shock winds its way through everything from the stock market to milk prices.
Political instability adds another layer of shock. The result is that American and Canadian consumers are paying more for everything from gas to green beans.
The U.S. Federal Reserve raises interest rates to try and cool inflation. It’s kind of a double whammy. While we wait for those interest rate increases to work their magic, we’re stuck with both high rates and high inflation.
As we head into 2023 inflation is going to affect both how much RV owners use their vehicles and how many people can afford to enter the RV market. This impact is likely to be larger for big, expensive new rigs.
It’s Buyer’s Time
After over two years of escalating prices, 2023 may be the year we see used RV prices return to Earth. Projections show a further decline in shipments from 2022. COVID-19 buyers may be unwilling to pay the higher operating costs of their vehicle and put it on the market.
Those sky-high prices for used RVs during the pandemic will have to respond to changing conditions. Two years ago you may have been the only one in your area selling your type of RV. Today there’s likely a lot filled with similar vehicles.
Not to mention the thousands of listings online if buyers are willing to travel.
You might not see used RV prices plummet. Despite fears of a bubble, campgrounds all over the country are still full. Many COVID buyers are perfectly happy with their purchases.
Keep in mind that interest in RV travel, particularly in camper vans, was growing well before the pandemic. Now that remote work is commonplace, wanderlust workers will likely continue to wander.
But it looks like the used RV market is starting to turn a corner in favor of the buyer. If that’s you, here’s how you can take advantage of this change.
Negotiate
If the buyer’s market emerges in 2023 as we anticipate, you’ll have a lot of room for negotiation. Decide what you need in your used RV and what you’d like to have.
One need is space. If this is your first RV sale, rent a few models first. Decide how much space you and your family need for your adventures and don’t look at smaller motorhomes or travel trailers.
The supply is there, don’t compromise and feel cramped. Other needs will differ depending on the individual buyer. Some of you must have a bathroom, some a kitchen, and others a workspace.
Negotiation and compromise will serve you well when it comes to what you want in your RV but don’t need. If you want a state-of-the-art entertainment system, perhaps you can negotiate a lower price so you can afford that upgrade.
Do Your Research
Look around, at dealers and on the internet, to see how much the RV you want is priced. Know how much it costs new and how much it’s running used in your area.
Negotiate on used RVs priced over market value. Be skeptical of those priced well below.
Those priced above may have amenities you aren’t willing to pay for and that’s okay. Keep looking. Don’t let the past two years scare you into thinking you won’t find an RV.
If a used RV is priced well below market value it may need a lot of repairs. Whether you consider it depends on your comfort level with DIY repair and your budget for professional upgrades.
Budget Carefully
Speaking of budgets, make one and stick with it. Since interest rates are higher than they have been over the past couple of years, try to avoid taking out a loan if possible.
Without the pressure to buy the only rig on the lot, it’s a lot easier to pass on RVs over your budget. Remember to account for the current cost of fuel and the cost of insuring and maintaining your purchase.
What’s a Seller to Do?
First, if you want to sell your RV, don’t despair. There is still demand. Buyers do exist, all over the country.
Making an RV sale often hinges on preparing your motorhome or camper. Check out our article on getting your RV ready to sell for tips and hints on making your vehicle attractive to buyers.
For people selling an RV in 2023 the most important thing is a realistic approach. Recognize that the past two years have been an anomaly. Things are starting to settle back into their pre-pandemic places.
It’s a mistake to think that the sky-high prices of the past two years are going to continue forever. Put your RV on the market at a fair price. Be honest if it needs work. A seller operating in good faith will attract buyers.
The Bottom Line for 2023 Used RV Prices
We think used RV buyers are in for lower prices and a larger inventory in 2023. Less demand, more supply, and an uncertain economy are fueling a slowdown in the industry overall.
