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How Do Manufacturers Determine RV Demand?<\/h2>\n\n\n\n Demand for RV models is determined by a few factors. <\/p>\n\n\n\n
RV manufacturers look at the number of people seeking out the product, how much they\u2019re willing to pay for it, and how many RV units are available to consumers.<\/em><\/strong> <\/p>\n\n\n\nIn most cases, however, market demand can fluctuate in the long run. That is why manufacturers always look at the market and make hard decisions on which models they should focus on and which they should cut back on.<\/p>\n\n\n\n
Manufacturers can ship specific RV models to places where the demand is high while retaining a few units for local sales. Dealers that buy the models also serve as another determining factor. If there are more dealers who order the model, this means there are more people looking for that product.<\/p>\n\n\n\n
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Where Do Unsold Camper Vans Go?<\/h2>\n\n\n\n
Campervan on the side of a deserted road on the South island in New Zealand<\/figcaption><\/figure><\/div>\n\n\nNow that we know a bit more about the supply and demand of RVs, let\u2019s circle back to the original question. We generally assume that unsold campers would go back to the manufacturer, get written off as bad debt, or get scrapped. We’ve all seen the signs posted by people looking for scrap metal. Another big thing these days is the vintage remodeled RVs – is there a market for upcycling old models?<\/p>\n\n\n\n
Let’s find out what happens to these.<\/p>\n\n\n\n
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Manufacturers Force Dealers to Sell Old Models With Various Incentives<\/h3>\n\n\n\n The most common occurrence for these unsold models is actually pretty interesting. <\/p>\n\n\n\n
Generally, RV manufacturers will force unsold models – often unpopular ones – to dealers when they order new, popular models. The dealers will then receive incentives from the manufacturer on these unsold units, along with additional co-op advertising funds and discounts to help sell them. <\/p>\n\n\n\n
Manufacturers will also help dealers with financing – which is called a floor plan – and may pay for all interest charges. Unsold RV units remain in the dealer\u2019s inventory, sometimes for years, until they’re sold. Older models often sell at a significantly lower price due to very deep discounts.<\/p>\n\n\n\n
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Dealers Return Unsold Campers<\/h3>\n\n\n\n You may be wondering why RV dealers don\u2019t just give back the unsold camper models to manufacturers. <\/p>\n\n\n\n
Sometimes, they can actually do that. <\/p>\n\n\n\n
On occasion, RV dealers are able give unsold units back to the manufacturer since they’re just losing money and space on the lot. After all, dealers can’t buy and showcase new RV models if they don\u2019t have space for them. <\/p>\n\n\n\n
However, in most cases, these unsold units are the dealer\u2019s property until a prospective buyer comes along. Hence, some dealers get pretty creative on how they try to sell these older models.<\/p>\n\n\n\n
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Unsold RVs Get Written Off as \u201cBad Debt\u201d<\/h3>\n\n\n\n In the rare instance that manufacturers do take back unpopular models, these units will get written off as bad debt. A write-off as bad debt means the manufacturer has given up on being paid by the dealer. <\/p>\n\n\n\n
These cases happen when there are too few RV models sold, or when the model just doesn\u2019t attract people. Instead of forcing the dealers to sell the models for steep discounts, they give up entirely and focus on bouncing back from the monetary loss. <\/p>\n\n\n\n
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Unsold RVs Get Auctioned<\/h3>\n\n\n\n Another option manufacturers and dealers have is to sell the old RV units at auctions. <\/p>\n\n\n\n
An RV auction is a great way to find a model that is new to you for a nice deal. RV auctions are the real deal – you can’t just walk up to the dealer and settle the money. You have to participate in \u201cbidding games\u201d to get the RV model you\u2019ve got your eye on.<\/p>\n\n\n\n
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Unsold RVs can be Recycled or Destroyed<\/h3>\n\n\n\n The last resort? These unsold units get destroyed since there is absolutely no market value. The useful parts either get recycled and used in future RV models, or sold to people wanting better rigs for their RV units. <\/p>\n\n\n\n
If the whole model is unusable, they just get thrown away.<\/p>\n\n\n\n