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Let the good times roll
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May 2, 2001: 6:32 a.m. ET
As the economy dips, so do the prices of RVs, boats and other grown-up toys
By Lucy Lazarony
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NEW YORK (Bankrate.com) - The best time to make a let-the-good-times-roll discretionary splurge is when times are, well, not so good.
Sales of everything from recreational vehicles to small boats and motorized "personal watercraft" slow whenever the economy slows. To boost lagging sales in 2001, manufacturers and dealers are rolling out the discounts.
Consumers eager to spend and play during these ho-hum economic times can land some terrific bargains. So get shopping.
People keen to hit the road in a recreational vehicle are in luck. RV dealers are offering discounts of as much as 25 percent off the manufacturer's suggested retail price.
"That's almost unheard of in this business," says Lenny Simms, vice president and general manager of N.A.D.A. Appraisal Guides. "There's some really good deals out there for people."
Why the big discounts?
RV dealers are still trying to recover from last year's dismal sales. The year 2000 was awfully rough on the RV business. Gas prices and interest rates were up and the stock market was down -- all factors that can slow RV sales.
Inventories soared because manufacturers overestimated demand and produced too many vehicles. So there were tons of RVs gathering dust on dealer lots in 2000 and fewer buyers.
On top of all that, 2000 was a presidential election year, and RV sales tend to flatten out whenever there's a chance someone new could be moving into the White House.
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This is a good chance for people (buying RVs) to deal both in the discount up front and in the financing.
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JD Gallant
president, RV Consumer Group |
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"When you come up to an election year people start holding on to their money because they can't count on everything staying the same," Simms says. "People couldn't really put their finger on which way the economy was going to head."
And now with 2002 models set to arrive on RV lots in just a couple of months, RV dealers are desperate to clear out as many 2001 models as they can.
"This is a good chance for people to deal both in the discount up front and in the financing," says JD Gallant, president of RV Consumer Group.
And while hefty discounts on RVs are available, you'll have to do some work to nab one. There are no automatic discounts on RVs. Be ready to haggle.
"There's no rebate. You've got to negotiate from the manufacturer's suggested retail price," Gallant says. "You've got to negotiate from that price. If you don't, you're at the mercy of the dealer."
Do plenty of research before choosing and purchasing an RV. It could save you a lot of headaches later.
"They're not all built the same. They need to be sure they're not buying a unit that's laden with problems," Gallant says. "Be sure to buy a unit with a good reputation. There's a really big range of quality. We rate them from one to 10. You wouldn't believe how many are threes and fours."
Do your financing homework
Don't forget to shop around for financing. Banks, credit unions and independent finance companies all offer RV financing.
You'll want to have a financing deal in place before shopping for your vehicle. That way the dealer will have to beat the interest rate on the loan to get your business.
If your idea of getting away from it all involves water and lots of it, why not purchase a small boat or motorized personal watercraft?
"Interest rates are low. Dealers are in a dealing mood. We're heading into the boating season. It's probably an ideal time to look at buying," says Tom Dammrich, president of the National Marine Manufacturers Association.
Yamaha is offering $1-down and $1-a-day payments on any new WaveRunner or sport boat purchased by July 8. The deals also include 6-month introductory financing rates of 1.49 to 1.99 percent.
Kawasaki has rolled out $1,000 rebates on select models of Jet Skis. It's also offering no money down, no interest and no payments for 120 days on any new 2001 Jet Ski.
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The 2001 Yamaha WaveRunner SuperJet. (Courtesy: Yamaha) | |
Bargain hunters seeking a marine adventure should think small. Most discounts and promotions are for boats that measure 26 feet and smaller. Larger boat sales remain steady and manufacturers have not slashed prices.
"People who can afford to buy a half-million- or million-dollar-plus boat are less affected by economic swings than most of us," Dammrich says.
Motorcycle sales also tend to remain steady when times are tight.
"They're almost recession-proof," Simms says.
Motorcycles may appeal to those with a thirst for adventure and the open road, but they also make cheap forms of transportation. They get great gas mileage and only cost a few thousand dollars. Lots of people pay by check, so there are no budget-straining monthly payments to worry about or justify to a spouse.
Classic car sales are also staying strong in these uncertain economic times. Lots of people view a classic car as a safer investment than the stock market at the moment. Plus, you can take it for a Sunday drive.
"We saw a lot of new, fresh collectors' blood at auctions starting at the beginning of the year with a lot of cash buyers," Simms says. "Everyone I talk to was coming from the stock market." 
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