RV sales are currently experiencing a market correction where wholesale shipments to dealers are trending up while retail sales to consumers are trending down. “RV sales” refers to two metrics: wholesale shipments (units sent from manufacturers to dealerships) and retail registrations (actual sales to the end consumer). Recent 2024 data shows manufacturers shipped 333,733 units to dealers, a 6.6% increase over the previous year. This contrasts with a 6.9% decrease in retail registrations during the same period, indicating the market is still balancing itself.
The Current State of RV Sales
The industry’s performance is two-tiered, with wholesale and retail figures moving in opposite directions. Retail registrations, which reflect true consumer demand, totaled 356,518 units in 2024, a 6.9% decline compared to the preceding year. This figure is higher than the 333,733 units shipped wholesale. This difference indicates that dealers sold more units than they received from manufacturers, confirming a strategy to reduce the high levels of existing inventory that accumulated on their lots.
Analyzing Recent Market Shifts
The current mixed sales picture stems from dramatic market shifts. The RV industry experienced a boom between 2020 and 2021 as consumers sought domestic travel options, driving demand to historic highs. Manufacturers responded by ramping up production and shipping units rapidly. This peak demand was followed by a sharp market correction starting in 2022 when economic conditions shifted. The high volume of units produced during the boom, combined with cooling consumer interest, resulted in a substantial oversupply of inventory at dealerships. The industry is now in a normalization phase, working through this backlog, much of which consists of prior model year units. The current retail decline is largely a consequence of elevated interest rates and tighter consumer finances limiting new purchases. The gap between higher retail sales and lower wholesale shipments confirms that the distribution channel is successfully shedding the excess inventory.
Key Economic Factors Influencing Demand
Several macroeconomic factors are exerting downward pressure on consumer demand for RVs, which are large, discretionary purchases. High interest rates have significantly increased financing costs for both dealers and consumers, with average RV loan rates around 9% or higher, even for well-qualified buyers. Since RV loans are considered higher risk than standard auto or home loans, lenders are less flexible. Inflation has also reduced consumer confidence and disposable income, making a major purchase less feasible. Furthermore, manufacturing costs have risen due to tariffs on raw materials, which are passed on to the buyer as a higher final price. Fluctuating fuel prices also affect the cost of RV usage, causing potential buyers to hesitate due to the increased expense of towing or driving large units.
Sales Trends Across Different RV Segments
Overall market trends conceal distinct performance differences across RV segments. Towable units, including Travel Trailers and Fifth Wheels, remain the dominant volume driver, making up nearly 90% of all wholesale shipments. These units are highly sensitive to interest rate fluctuations, leading to decreased retail registrations despite increased wholesale shipments in 2024. In contrast, the Motorhome segment (Class A, B, and C vehicles) has seen a more pronounced decline. Wholesale shipments of motorhomes were down nearly 24% for the full year 2024. While motorhomes rely on wealthier buyers, current economic uncertainty has impacted this high-end market.
Travel Trailers and Fifth Wheels (Towables)
Towable RVs are the most affordable entry point into the lifestyle, making their sales volume highly reactive to changes in consumer financing conditions. Travel trailer retail registrations decreased by 5.9% in 2024. Fifth-Wheel registrations fell by 8.1%, despite their wholesale numbers showing modest growth.
Class A and Class C Motorhomes
The motorhome market is challenged, as the higher price point magnifies the impact of rising interest rates. Class A motorhome retail registrations dropped by over 15% in 2024, while Class C registrations saw a smaller decline of 5.0%. The investment required for these vehicles means that small increases in financing rates translate into hundreds of dollars in additional monthly payments, deterring many buyers.
Truck Campers and Pop-Ups
Niche segments like Truck Campers and Folding Camping Trailers (Pop-Ups) also experienced retail contractions. Pop-Ups saw a 24.4% decrease in registrations in 2024. These segments represent a lower-cost alternative to larger RVs. Their performance indicates that even budget-conscious buyers are delaying purchases, likely due to high financing rates and the increased cost of fuel for extended trips.
Inventory Levels and Dealer Pricing Strategies
High inventory levels at dealerships have created a buyer’s market characterized by aggressive pricing strategies. Dealers are eager to move aged inventory, which includes prior model year units that incur costly floorplan financing charges, known as curtailment fees. These fees escalate the longer a unit sits on the lot. The MSRP for a new RV is often marked up by 30% to 50% over the dealer’s invoice price, making substantial discounts a standard part of the negotiation process. Buyers can realistically target a discount of 30% to 35% off the MSRP for a current-year model. For aged inventory, dealers offer discounts of 40% to 50% off the sticker price to clear the lot and avoid financing penalties, sometimes selling the unit near or even below their cost. Dealers utilize manufacturer incentives, volume bonuses, and a “dealer holdback,” which is 1% to 3% of the MSRP reimbursed by the manufacturer after the sale. These financial tools allow dealerships to offer deep discounts while still maintaining a profit margin.
Industry Forecasts and Future Outlook
Industry projections suggest the market correction will stabilize, leading to a moderate rebound in wholesale shipments. The RV Industry Association forecasts that wholesale shipments will increase to a median of 391,400 units in 2025. This growth depends on the successful depletion of dealership overstock, which will necessitate new orders from manufacturers. A sustained market recovery is also dependent on changes in the macroeconomic landscape, particularly an anticipated easing of borrowing costs. Stabilized inventory levels and reduced interest rates would make RV financing more affordable, stimulating consumer demand. The industry is positioned for a gradual, measured return to more normalized sales volumes.
Implications for Buyers and Sellers
The current market presents distinct advantages for prospective buyers, who benefit from high inventory and aggressive pricing strategies. Buyers are in a strong position to negotiate discounts of 30% or more off the MSRP on new units, with the potential for deeper liquidation pricing on prior model year RVs. This is an optimal time for a cash buyer or one with secured, low-rate financing to acquire a unit at a reduced transaction price. For current RV owners looking to sell or trade in, the market conditions are less favorable due to the high volume of new and used inventory. Used RVs experience steep depreciation, often losing 20% to 30% of their value in the first year alone. Dealers are offering trade-in values closer to the unit’s wholesale price to ensure they can recondition and resell the unit at a profit.