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09-14-2018, 09:51 PM
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#21
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Member
Brand: Thor Motor Coach
Model: Vegas 24.1
State: Virginia
Posts: 91
THOR #13067
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Quote:
Originally Posted by MelRobidoux
So we have been doing some soul searching about trading in our coach for a different model. Recently we were shot down a bit because we were told the recent tarrifs have severely increased prices. We have noticed this to be true.
We were told to see the newspaper article that came out in The NY Times about the RV industry being hit hard because the tariffs on steel. Do you think it’s hype or some truth to it? Or, is it a another reason to raise prices?
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We were looking at a 2019 Vegas on a dealers lot. While we were debating on what we really wanted, the RV was sold. The dealer told us they could order the same thing but it would be 1,200 more because Ford is raising the cost of the chassis. We found a new 2018 for a great price with everything we wanted.
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09-14-2018, 09:58 PM
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#22
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Senior Member
Brand: Thor Motor Coach
Model: 34F
State: Oklahoma
Posts: 628
THOR #8432
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Quote:
Originally Posted by Laco
If tariffs are affecting the cost of new units, and I don't know one way or the other, it would also increase the value of your current unit.
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And cars, trucks, motorcycles. BTW did you see the sticker price on the window?
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09-14-2018, 10:01 PM
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#23
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I Think We're Lost!
Brand: Still Looking
Model: Tiffin Wayfarer 24 BW
State: New York
Posts: 22,195
THOR #8860
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Quote:
Originally Posted by MelRobidoux
You and me both! About 156k
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We should start out by offering them 115K.
After the salesman is unconscious from choking on his tongue: we can go beat on the Sales Manager a bit!
__________________
"What: me worry?"
Good Sam Member 843599689
Current coach: Tiffin Wayfarer 24 BW
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09-14-2018, 11:31 PM
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#24
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Senior Member
Brand: Still Looking
Model: SOB
State: South Dakota
Posts: 948
THOR #3916
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Quote:
Originally Posted by Bob Denman
We should start out by offering them 115K.
After the salesman is unconscious from choking on his tongue: we can go beat on the Sales Manager a bit!
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Hmmmmmm.............................thinking...... ..............The Class A Intent is what..$85k? ..............Hmmmmmm....... Offer $85k........... but it has to be full of gas,water and propane.....And a Cookie
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current coach
An SOB Shack called Foretravel...This will Do.
former coach
Thor Infinity
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09-15-2018, 12:11 AM
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#25
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Senior Member
Brand: Still Looking
State: Texas
Posts: 6,187
THOR #2121
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Slowdown in larger motorized RVs started almost a year ago. So far this year Class As are down 3.4%.
SSI: Motorized Sales Flat for 7 Months, Up 0.3% | RV Business
If cost of steel was the primary culprit, I’d expect it would have affected Class Bs also, yet their sales are up 29% for same period. Granted, Class As use more aluminum.
It’s possible raw materials are having an impact on sales, but I personally feel there are other market forces that are far more influential.
SSI: 'B' Sales Stay Strong, up 29% for 7 Months | RV Business
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09-15-2018, 01:26 AM
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#26
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Senior Member
Brand: Thor Motor Coach
Model: 22E
State: New York
Posts: 322
THOR #12119
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Tariffs on parts
The Tariffs will eventually affect the cost, but it will take a bit. The main purpose of the Tariff is to bring production back to the U.S.
You must also remember that businesses also received a nice tax break which they could use some of this money to offset the increase in costs of goods.
Inflation and rising interest rates might have an affect the costs also.
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09-15-2018, 01:48 AM
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#27
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Senior Member
Brand: Still Looking
State: Texas
Posts: 6,187
THOR #2121
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An RV industry CEO stated in an interview that most new RV sales are financed for 15 or 20 years, and that monthly payment was critical to affordability. If so, I’d agree that inflation and higher interest rates are important.
Slightly higher cost of fuel probably hasn’t helped much, nor reports on poor quality. There are a lot of variables to point finder solely at one.
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09-15-2018, 01:13 PM
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#28
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Senior Member
Brand: Thor Motor Coach
Model: 34F
State: Oklahoma
Posts: 628
THOR #8432
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Quote:
Originally Posted by Chance
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So if that's true about Tariffs, then everything and I mean everything should be higher....but for the moment, nah. Then again there's lot of available steel and aluminum in the aircraft and ship boneyards. Doesn't need to be dug up either.
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09-15-2018, 03:25 PM
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#29
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Senior Member
Brand: Thor Motor Coach
State: Washington
Posts: 1,112
THOR #6433
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The problem with the Tariffs is it will have an immediate affect on prices of new units. The manufacturers know their cost will be going up so they are going to hedge as much as they can now. They have to squeeze as much profit as they can. Once they start realizing to costs of the tariffs then new sales will have a slowing effect. A used unit will not go up or stay stable in value for a long time after, there are additional market forces that control those prices. For used units it’s a supply and demand and it’s interest rates and availability of credit that control the prices.
It’s just like in the banking world, when the prime rate goes up we change rates on credit cards, lines of credits and vehicle loans immediately. The rate you earn on your deposits does not go up immediately. Those deposit rates only go up when the market forces them to and they will go up as slow as possible. The reason why is to take advantage of the yield curve while you can because you know your going to have increased expenses in the future.
So basically just the threat of tariffs will have an affect and each manufacturer and dealer will adjust to what they forecast for the future. A smart business will take advantage of the little extra they can squeeze out now because when the market changes that little extra may be what keeps them in business at worst or allows them to lay off less people at best.
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09-15-2018, 10:36 PM
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#30
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I Think We're Lost!
Brand: Still Looking
Model: Tiffin Wayfarer 24 BW
State: New York
Posts: 22,195
THOR #8860
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But the Sky isn't falling just yet...
__________________
"What: me worry?"
Good Sam Member 843599689
Current coach: Tiffin Wayfarer 24 BW
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09-15-2018, 10:59 PM
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#31
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Site Team
Brand: Crossroads
Model: CF32BL
State: Mississippi
Posts: 1,030
THOR #121
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no politics guys
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Frank and Janet Henn
2008 CrossRoads CF32Bl pushing a 2007 Dodge 2500
Traveling with Hoover, Rainbow and Sunshine
The wonder Schnauzers
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09-15-2018, 10:59 PM
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#32
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Senior Member
Brand: Thor Motor Coach
Model: Axis 24.1
State: Georgia
Posts: 844
THOR #1123
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Agree. But since politics came into play earlier in the post I figured it became fair game.
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09-15-2018, 11:08 PM
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#33
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Senior Member
Brand: Thor Motor Coach
Model: Hurricane 31S
State: Texas
Posts: 4,183
THOR #6411
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Quote:
Originally Posted by Elite Washington
The problem with the Tariffs is it will have an immediate affect on prices of new units. The manufacturers know their cost will be going up so they are going to hedge as much as they can now. They have to squeeze as much profit as they can. Once they start realizing to costs of the tariffs then new sales will have a slowing effect. A used unit will not go up or stay stable in value for a long time after, there are additional market forces that control those prices. For used units it’s a supply and demand and it’s interest rates and availability of credit that control the prices.
It’s just like in the banking world, when the prime rate goes up we change rates on credit cards, lines of credits and vehicle loans immediately. The rate you earn on your deposits does not go up immediately. Those deposit rates only go up when the market forces them to and they will go up as slow as possible. The reason why is to take advantage of the yield curve while you can because you know your going to have increased expenses in the future.
So basically just the threat of tariffs will have an affect and each manufacturer and dealer will adjust to what they forecast for the future. A smart business will take advantage of the little extra they can squeeze out now because when the market changes that little extra may be what keeps them in business at worst or allows them to lay off less people at best.
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Thor industries does not build any coach or trailer that a dealer has not ordered. No RV made by Thor leaves the delivery lot until it is paid for in full. Dealer pricing is fixed at time of order. That has always been the corporations business model and is the reason Thor showed a profit during the economic downturn of the late 2000's. In fact, they made enough money to buy other RV makers in 2008, 2010 and 2015. I just toured the Airstream factory in Jackson Center to look and their new production facility (it has doubled in size). When I was first there in 2005, they were producing 48 trailers a week and 6 motor class Bs per week. As of the end of August they were producing 82 trailers and 12 class Bs per week and the dealer order backlog is 310 days.
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Jim & Roy Davis
2016 Hurricane 31S
1961 Rampside in tow
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09-15-2018, 11:09 PM
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#34
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I Think We're Lost!
Brand: Still Looking
Model: Tiffin Wayfarer 24 BW
State: New York
Posts: 22,195
THOR #8860
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__________________
"What: me worry?"
Good Sam Member 843599689
Current coach: Tiffin Wayfarer 24 BW
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09-15-2018, 11:11 PM
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#35
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I Think We're Lost!
Brand: Still Looking
Model: Tiffin Wayfarer 24 BW
State: New York
Posts: 22,195
THOR #8860
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Quote:
Originally Posted by Beau388
Thor industries does not build any coach or trailer that a dealer has not ordered. No RV made by Thor leaves the delivery lot until it is paid for in full. Dealer pricing is fixed at time of order. That has always been the corporations business model and is the reason Thor showed a profit during the economic downturn of the late 2000's. In fact, they made enough money to buy other RV makers in 2008, 2010 and 2015. I just toured the Airstream factory in Jackson Center to look and their new production facility (it has doubled in size). When I was first there in 2005, they were producing 48 trailers a week and 6 motor class Bs per week. As of the end of August they were producing 82 trailers and 12 class Bs per week and the dealer order backlog is 310 days.
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I'm glad to hear that they're making money: I just hope that they spend a bit of it on training their employees how to build a better RV...
__________________
"What: me worry?"
Good Sam Member 843599689
Current coach: Tiffin Wayfarer 24 BW
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09-15-2018, 11:46 PM
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#36
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Senior Member
Brand: Thor Motor Coach
State: Washington
Posts: 1,112
THOR #6433
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That literally has nothing to do with anything unless everyone of those was a special order vehicle that already had a price already set. But as far as the dealers just filling their lots when they are empty that doesn’t affect anything. They just order them at the time they need more. The dealers are using a flooring line to buy the vehicle and passing any cost to the purchaser. There is no way a manufacturer is saying hey we are a year out we don’t know what it’s going to cost but we will give it to you at this price even though there is a good chance we will lose money because we like you. The dealerships aren’t buying these at a contract price like how Boeing would sale a plane to an airline. Any possible future cost of good hikes are already built in that’s how you stay in business they are hedging for the worst case and hoping nothing happens that way if nothing does they just make even more. Customers are used to the new price and are okay with it.
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09-16-2018, 12:13 AM
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#37
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Senior Member
Brand: Thor Motor Coach
Model: Hurricane 31S
State: Texas
Posts: 4,183
THOR #6411
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Quote:
Originally Posted by Bob Denman
I'm glad to hear that they're making money: I just hope that they spend a bit of it on training their employees how to build a better RV...
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Each plant is its own entity and answers only to headquarters, but they do trade employees from time to time. Currently there are 14 different plants. Thor has about 11,000 employees in the Elkhart area and another 3,800 in other areas. Your coach was made in plant 850 in Wakarusa (the only class c made there). When I was there 3 years ago, they had about 800 full time employees. About 730 were hourly employees with 690 on the day shift and 40 on the night shift. With the increased demand for the Tuscany and Challenger models plus the introduction of the Aria, I would assume they have hired a few more people. It looks like Thor is in the lead to buy Hymer caravans, make it 15 plants. I know the have doubled their size of the repair facility out back of plant 850 and built a huge paint shop, since I was there.
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Jim & Roy Davis
2016 Hurricane 31S
1961 Rampside in tow
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09-16-2018, 01:39 AM
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#38
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I Think We're Lost!
Brand: Still Looking
Model: Tiffin Wayfarer 24 BW
State: New York
Posts: 22,195
THOR #8860
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I didn't know that about my rig; thanks!
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10-02-2018, 01:22 AM
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#39
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Senior Member
Brand: Thor Motor Coach
Model: 34F
State: Oklahoma
Posts: 628
THOR #8432
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Quote:
Originally Posted by Bob Denman
I didn't know that about my rig; thanks!
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Really glad that at least some of this Tariff stuff is on hold for awhile. Up in Canada I oncet saw a refer at a snack bar which had quart size containers that said, "Boxed water is better". Staggering, had to take a picture of it.
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