Economic woes hit RV, boat dealers more than gas prices

Chugging along at six miles to the gallon, recreational vehicles seem like dinosaurs in a world primed for plug-ins and fuel cells. Same with gas-guzzling powerboats.

Soaring gas prices have hurt sales of RV and pleasure boats, but not as much as some might expect, say local dealers.

“It’s not a good time for the business,” says Jim Forlivio, manager of Germaine RV Sales in Mesa. “But I’ve been in thus business as long time. I’ve gone through this before.”

Nationally, sales are off 14 percent, but those who have RVs already are still using them, since campgrounds are booking up as fast as ever, according to the Recreation Vehicle Industry Association.

Sales of high-end motorhomes haven’t slackened, says Forlivio. “If someone is spending $400,000 to $500,000 on a motorhome, they’re not worried,” he says. “It’s the less expensive stuff we’re losing.”

Charlie Spencer, owner of Tige Performance Boats in Mesa, has seen a similar phenomenon. Sales are down, he says, but his dealership is still selling plenty of boats in the $60,000 to $70,000 range.

More than gas prices, he thinks the Valley’s soft housing market is hurting sales.

“People just don’t have the equity in their homes anymore,” he says. “Even if they weren’t borrowing from that equity to buy toys, that’s fluff they could use that they don’t have now.”

Cory Bendixen, finance manager at Surfside Boat World in Mesa, says sales of boats are down 50 percent nationally, but that he puts more blame on the economy than gas prices.

Boaters aren’t necessarily not buying, and they definitely aren’t leaving the boats they already have in docks, he says.

“It’s definitely a lifestyle for them, so boaters are going to go out on the water and sacrifice wherever else they have to,” he says.

David Skogebo, general manager of World Wide RV in Mesa says sales are down 10 percent this year. “But we’ve grown 20 percent every year for the last three years so it’s not much to give back,” he says.

Sales of so-called toy haulers — trailers used to pull four-wheelers and dirt bikes — are suffering badly, he says, since the average buyer was very connected to the Valley’s depressed construction business.

But, Skogebo says, RV buyers tend to be retired, and after working hard to provide for their golden years, they’re not going to let a hundred dollars a fill-up get between them and the open road.

“What are they going to do, wait?” he says. “They’re going to get out there. They can’t wait 10 years.”

Forlivio, manager at Germaine RV, says there is good news for people who want to buy, despite fuel costs.

“The margins are nil right now. It’s getting rid of inventory,” he says. ”It’s a good buyer’s market — and that’s not just something I’m saying. It really is.”