At least one small dealer has discontinued stocking new RV units because the manufacturers wanted him to carry larger inventories than what he felt he could afford, according to the Standard-Examiner of Ogden, Utah.
Roy Mendoza, owner of Roy’s Cars & RVs in Ogden, told the Standard-Examiner he now stocks only used RVs, along with cars and trucks.
RV manufacturers “forced numbers on us and we didn’t want to carry $2 million to $3 million in inventory because the interest (expense) ate us alive,” Mendoza told the newspaper.
Now, he attends auctions and watches for used travel trailers he can resell for $5,000 to $10,000.
Otherwise, Mendoza’s advice to small retailers is “unless you’ve got a lot of money to stock a lot of (new RV) units and can sit on it during the winter, don’t get into the business. You’ll end up paying a lot of (floorplan) interest to keep your inventory.”
In contrast, some of the largest RV dealers are getting bigger. Lazydays RV SuperCenter near Tampa, Fla., recently reported its sales revenue climbed to almost $700 million in 2002 and Giant RV, a five-location dealership in Southern California reported its 2002 sales revenue increased 30% to more than $160 million. Giant RV also reports on its website that the total value of the inventory at its five locations amounts to around $60 million.