More consumers are getting rejected when applying for loans to buy an RV, but tight credit does not appear to be a huge problem facing the industry, according to a recently completed survey by the A.G. Edwards & Sons investment firm.
The Edwards firm surveyed 45 randomly selected dealers in nine states during mid-December and it found, “Overall, 80% of the dealers still reported (consumer) credit problems were either normal or below normal, which was better than either the 69% or 73% who reported similar results during the third quarter and year-ago survey.”
Meanwhile, 20% of the 45 dealers surveyed during mid-December felt their customers had “higher than normal” problems qualifying for a loan to buy an RV, said Craig Clark, associate analyst at the Edwards firm.
During the third quarter of 2001, 31% of the dealers surveyed reported their customers had higher than normal credit problems, and the percentage was 27% during the fourth quarter of 2000.
Consequently, it can be suggested that RV consumer credit problems eased during the fourth quarter, although Clark admits there is “no concrete reason explaining this phenomenon.”
There are few credit worthiness problems among the consumers attempting to buy highline Class A motorhomes, according to the dealers surveyed.
However, “Many dealers continue to indicate that lending standards remain tight,” Clark wrote. “They stated that many RV purchases that would have been financed last year or earlier this year are now being turned down by lending institutions.”