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RV sales take licking with high gas prices

Mike Sellers, owner of Lakeside RV Sales in Anderson, talks with Rick Hedden, left, and Mandi Hedden while looking at RVs and pull-along campers.

Photo by Nathan Gray

Mike Sellers, owner of Lakeside RV Sales in Anderson, talks with Rick Hedden, left, and Mandi Hedden while looking at RVs and pull-along campers.

STORY TOOLS

The sign of American road opulence, the recreational vehicle, has been everywhere. Until gas prices started rising.

While RVs are still selling, gas prices of near $4 per gallon have affected the industry, area dealers report.

With the large, bus-size vehicles getting 10 to 12 miles per gallon, and some price tags of near $300,000, only those with serious money can go luxury RVing. And pulling an RV can also add up to some big cash outlays today.

Depending on whom you talk to, area RV sales range from acceptable to weak, according to dealers.

Local dealers gave mixed reviews on recent sales.

Mike Haggy, a sales manager with Suncoast RV in Greenville, said that the gas prices have not decreased the trend to a great extent, and they sell everything from $5,000 to $400,000 recreational vehicles.

But an official with MathewsRV sales and service in Anderson said the price of gas started hurting the business as much as three years ago.

Spokespeople for Lakeside RV Sales in Anderson, Travel Time USA Inc., which has locations in Anderson and in Lavonia, Ga., and Porter RV Sales in Easley, all agree that gas prices have slowed sales.

At Suncoast RV, sales have declined about 20 percent since last year, a store official said.

Mike Sellers, owner of Lakeside RVs, agrees. “The industry is down 40 percent or more for motorized RVs and 20 percent to 30 percent for tow-ables, according to national fact sheets, and we don’t sell motorized.”

Even though Greenville and Anderson are in the same market, they each report slightly different decreases.

Sellers also reported that the decrease is not too great considering the amount of people per day has decreased from an average of about 30 to about 22 people per day.

“It’s just like the car market.” Sellers said. “Some will file bankruptcy and the others that are more financially sound will stick around until the industry is good again.”

But a national motor homes spokesman put a stronger face on sales.

While overall sales are expected to dip slightly in 2008, it still looks as if it’s going to be a strong year, said Kevin Broom, director of media relations for the Recreational Vehicle Industry Association (RVIA).

According to a 2005 study by the University of Michigan commissioned by RVIA, almost one in 12 households in the United States owns an RV — or nearly 8 million households. That’s an increase of 15 percent from 2001 and a whopping 58 percent gain since 1980.

It might have something to do with saving money. Some studies suggest that the typical RV family vacation, on average, costs 26 percent to 74 percent less than other types of vacations because you don’t have to pay for air travel, hotels or eating in restaurants.

An added perk: As long as the motor home has a kitchen or galley and sleeping space and you live in it at least 30 days a year, it qualifies as a second home. That means interest on the financing is tax deductible.

For the average driver, it’s about MPG: Miles per gallon remain relatively the same for both tow-ables and bus-sized RVs; an average of 10-12 miles per gallon.

Types of RVs range from tow-able $5,000 pop-ups to motorized buses.

A 17-foot tow-able Coachman Capri, for instance, can be had for about $13,000 yet still comes with sleeping space for four, a full kitchen with a propane burner, microwave and fridge, and a full bath, according to dealers. It also has both heat and air conditioning.

If you want to combine your driving with your living quarters, you’ll want one of the three types of motorized RVs: a Type C motor home, which is built on an automotive manufactured van frame with an attached cab section; a Type B, which is commonly called a van camper; or a Type A, which is a virtual home-away-from-home on wheels.

The Type C motor home, which ranges in price from about $50,000 to $150,000, is the most popular motorized RV in terms of sales. Yet the 30-foot Type A, which is the roomiest of all RVs and therefore has the best livability, also has found a growing audience. Most come with full baths and full kitchens and such high-tech treats as flat-screen TVs with DVD players, surround sound, and even motion satellite and GPS systems.

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