LOUISVILLE, KY — Step onto the lot of any local RV dealer and you're likely to hear the words "credit application." You're also likely hear another word: "declined." Experts say turning that trend around is the biggest key to the industry's future. At this year's Recreational Vehicle Industry Association National Trade Show, demand for RVs was up, but many consumers just haven't been able to buy because credit markets remain frozen.
Some experts estimate more than 70 percent of potential buyers have been unable to finalize an RV purchase over the last 18 months, because banks won't lend them the money. A Major Problem Two years ago, credit wasn't a problem. In fact, it was probably too available, says New York City based financial analyst Greg Badishkanian. It's a major problem for the RV industry now. "Go back to, let's say, a year and a half ago. If 10
consumers went on to a lot and wanted to purchase a motor home, about eight would get financing. Right now, it's around four or 4.5," said Badishkanian, a Senior Equity Analyst with Citigroup. They are grim numbers RV industry executives have been fighting to turn around. "We've been working and pleading for a little more 'oopmh' from the credit people to loan money," said RVIA President Richard Coon. Continued Page 2