Large RV Dealer Reports Crippling Losses -- Can They Survive?

we have some news to report guys this is quite eye openening and it gives a real insight to the current state of the RV industry before we get to that just want to let you know many of our viewers have been unsubscribed unknowingly so just take a moment go make sure you are subscribed also hit the notification Bell because we will be doing many of our travel videos and talking about traveling where are we today so we are at a new Campground we are at to I hope I say this right to correct this toana state park in toana Pennsylvania part of the Poconos Mountains here yeah we just got here a few hours ago so the dogs are exhausted and you may hear Sierra snoring snoring in the back it's not a chainsaw it's a dog SN yeah nothing's wrong with the RV nothing's rattling it's her so yeah so we'll have a uh full review coming out for you in about a week again we can't really report yet cuz we haven't kind of gone around say it's been raining since we got here been raining yeah so let's get into this now we've talked about pretty much well not pretty much every month we give you guys updates on RV shipments as well as RV sales the last video we did on RV sales was about a week ago we'll link it above shipments have increased year-over-year four months in a row sales have continued to decrease month after month year over-year and the last report was decreased sales now sales is really what matters this is coming from RV news as well as RV business it's talking about lazy days Lazy Days RV is a rather large dealership not as large as Camping World but very large they are reporting devastating losses so this as is he said RV news.com lazy days reports larger than expected losses and it is quite large so they actually um postponed their first quarter financial report for 6 days The Lazy Days Executives were saying that the company did suffer large than expected losses so the CEO of lazy days John North said the dealer Lo dealer chains lost $22 million in the first quarter of 2024 as compared to 2023 it's a723 per increase from a $300,000 loss in the first quarter of 2023 that is a quite large yes first quarter 2024 Revenue totals 27.6 million down 8.5 % from the first quarter of 23 and this is in quotes North said lazy days expectations of increased sales in March and April did not materialize as we hoped and he continues we have continued to focus on maintaining our healthy inventory position as model year 2025 units arrive while increasing our efforts to procure more used units to augment our tradein and drive additional Revenue opportunities as of May 15th North said that 90% % of the lazy Day's new inventory is model year 2024 and 2025 so we did check out the website see what was available we'll go to Lazy Days right now and this is for all their dealerships you just kind of go I clicked off new and then just uh sort by oldest first so they have six 2022 including a van Lee couple Tiffin and couple Thors that van Le is I don't know if they're ever going to sell that but these are 22s that might be challenging yeah and then you go to the 23s and there's just pages of 23s he says there's 90 90% I'm sure that's that's accurate but there's a lot of 22s and a lot of 23s out there now keep in mind RV industry Works a little different 22s are essentially three-year-old coaches the 23s are 2-year-old coaches the 24s at this point are one it's a one-year-old coach and uh the 25s are what's coming out the dealerships are paying for all these to be on their lot so those 22s have been paying for 3 years to be on their lot and when they're out there they'll never going to get the the prices that that they originally were going to get for the new what we're surprised at is we're looking at these 22s 23s and we're not seeing at least how they're marked on the website the discounts are not as high as we've seen in the past or as you would think for something that is almost 3 years old for example you have a 22 Allegro bus 37 AP they have it marked 33% off and selling may give off more you know if if you are going to purchase that may be just what's advertised but it was you know we thought would be a little bit more so a couple other things lazy day is also announced raising 15 million to facilitate an amendment to the company syndicated credit facility they're also part of the agreement that will free $10 million for General Corporate purposes the company reported 39 million cashed on hand as of May 15th that's including the additional funding lazy days can also access an estimated 45 million in mortgage loan proceeds from refinancing stores the company owns we'll see how it pans out what is causing this put in the comments below but we've talked about this in other videos it there several factors one the cost of living has gone up it it just has you I think groceries are up 30% and energy is up 50% electricity interest rates are through the roof the mortgage rate is now approaching 8% again I know the inflation numbers just came back 3.2% and people are celebrating that like it's a victory well it's not 99.1% but remember the norm is two so we're still 50% above that and the FED doesn't doesn't look like they're given any indication of cutting rate so for most RVs are something that are Leisure it's not a necessity so when things get tight well then you cut back on on the things that are just a Leisure and unfortunately RVs are that for many we are very interested in seeing how this plays out for lazy days and many of other dealers as well and and again we always hope for the best and I know a lot of people always say well they deserve it this and that you I want to see what's best for the consumer and for everybody involved of course you would hope the RV industry would take this as an opportunity to improve quality because there are still manufacturers that have a waiting list those are the ones that never cut back on their quality yeah the manufacturers have a little bit to do with this Absolut a lot to do with this also absolutely so yes so in terms of Manufacturers we will actually be heading down to Nashville well Lebanon Tennessee for the NVC motor home Expo on June well we're leaving June 1st and that is running from June 4th through 7th if you're interested in seeing coverage from that guys we're going to be bringing you a ton of coverage we're going to be going live so we're we're going to be showing you all the new 2025 models before they're even shown at Hershey so before you know the public gets to see them we're going to be bringing these to you and also there'll be videos coming out you know weeks after um this trip's going to be great it's it's we're really really excited about it not only we going be covering the show but we're going to have tons of different campgrounds that we're bringing you on our way down and on our way home um we're hoping to get some interviews with industry Executives and and talk about a lot of concerns that people have but definitely subscribe make sure your notification Bell is on because we will be going live throughout the week and showing you all different models and they're going to have a wide variety so we are going to be looking at integras and numar and Tiffin and Coachman yeah why and again in the past shows guys a lot of you seem to enjoy the range of budget that we showed so we weren't just showing high-end we were showing a lot of more affordable types of motor homes and and other you know trailers and fifth wheels and things so we're going to be doing the same thing in terms of budget at this show you'll see a wide variety and what'll be nice and different about this show versus like the Hershey show the Tampa show usually when we go live it's like a mad house there's you know 25,000 people there's noise people screaming like clowns everywhere I'm not talk calling people clowns like actually clowns but this is going to be different there's going to be two to 300 people very intimate we're hoping to get a lot of test drives in cuz they actually have designated times for test drives and just kind of bringing you the whole show itself I think is going to be a very different atmosphere we're going to be able to show you a lot more versus people going in and out it's going to be very different and this is the first ever if you don't know what this is is the first ever that they're doing this so it's really really exciting it's like one of these huge shows but in a much as he said a much smaller more controlled VIP experience so we're we're super psyched to bring that to you and you want more information about that show we'll link it down below the link for it but we want to hear from you guys we say this on these videos we want to know what you think are you in the market for the an RV were you in the market for the RV and you just priced that or you're sick of quality or you just not doing anymore or are you going to buy one and what are you seeing local by you have you made offers are there good deals out there we want to know and our viewers want to know if you like videos like this guys to the left of us we'll put our RV news playlist we'll put our RV newbies playlist and for myself and MJ to Journey the lifetime and we'll see you on the [Music] oh

Channel: Endless RVing

Views: 65,856

Keywords: endless rving, lazydays rv, rv, rv sales, motorhome, full time rv, rv life, glamping

Id: fVHz5LfTfW0

Length: 9min 32sec (572 seconds)

Published: Fri May 17 2024