Credit union RV loans are back on the road after the industry slowed to a stop during the recession.

Sales on RVs have grown steadily, reaching an eight-year high of 356,735 units shipped nationwide in 2014, according to the Recreational Vehicle Industry Association. Shipments showed an 11 % gain year-over-year, and a 116% gain since the industry's recession low of nearly 165,000 units shipped in 2009.

According to the RVIA's most recent ownership report, the fastest-growing cohort of RV owners in 2013 were Gen Xers aged 35 to 44 years old, which was just slightly less than the industry's largest cohort of owners, who are between 45 and 54 years old. The average American RV owner was 50 in the 1980s; today that age is 48 and falling.

Robin L. McKenzie, senior vice president/ marketing and communications of Redwood Credit Union in Santa Rosa, Calif., said the trend looks like it will continue into 2016.

“RV loans are very popular with our members, especially during the summer, and our low rates and longer terms [up to 84 months] are attractive to borrowers,” she said of the $2.7 billion credit union.

RV loans at Redwood were as low as 4.24% APR for a new RV with an 84 month term, and 4.74% APR for a used RV at 84 months.

In a survey conducted in December 2014 at the annual RVIA trade show in Louisville, Ky., 41% of survey respondents — the majority of whom were RV dealers — said they expected sales to rise 5% to 10% next year. Twenty-six percent of respondents expected 10% to 15% growth.

“Historically, when the RV market is growing, a younger buyer does typically come back,” Randy Potts, president/CEO of RV manufacturer Winnebago, said.

The growth has driven the biggest surge in RV sales since the early 1990's.

The industry has seen double-digit sales growth during the past three years, and this year, shipments of tow-behind travel trailers are expected to reach their highest levels.

The skyrocketing sales are fueled by the 10,000 or so baby boomers who are turning 65 every day, plus a large band of fifty-somethings who are planning for an active or early retirement.

The average price of a basic tent trailer is less than $10,000. Travel trailers start at about $12,000 and can cost upward of $100,000 for a fifth-wheel. Camper vans, which are smaller versions of the enclosed motor home, start at $40,000 and easily run into six figures.

When RV purchase intentions are combined across current owners and market entrants, a total of 21% of all U.S. households stated intentions to purchase an RV at some point in the future. This represented only a slight decline from the 23% rate in 2005, and was ahead of the 16% rate in 2001.

“These purchase intentions are very encouraging for the industry,” said Sid Johnson, chairman of RVIA's market information committee and director of marketing at Jayco RV. “These survey results were collected in a challenging financial environment yet they are very close to the 2005 data when the economy and consumer outlook was much brighter. Overall, the results indicate strong demand for RVs in the years ahead.

Instant Insights /

RV Loans Back on the Road Again

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