President MBA Insurance
It is that time again when we begin looking forward to the next year. However, this coming year might be a little scarier than previous years. With everything that is going on (and I do not need to recite all the issues) this next year may define the future for many dealers as well as ordinary people, our customers, in general.
Let me share with you my thoughts, what I am hearing from dealers and our clients that we speak to daily. The sentiments generally expressed are:
- Rentals are great
- Rentals are the thing that is keeping us going
- Rentals are up and sales are down
- Rentals are the only thing giving us cash flow
- We are looking to expand our rental fleet next year
- Sales are tough and we are getting so many calls for rental that ...
So, I predict that the rental area is going to grow in 2009. Wow, I am Karnak the predictor! That is not a tough prediction to make with gas prices coming down (under $2.00 as I write this piece) and so many alternative options for vacations getting more expensive and causing more of a hassle to participate in. RVing is still relatively inexpensive, a lot of fun and fully controlled by the family.
Yet, what makes renting so attractive to the retail public is the lack of commitment required relative to a purchasing decision. Today, it is these tough economic times and the perceived necessity to protect ones economic position that will be causing RV customers to rent.
It will be making, or not making, a commitment that will be the deciding factor in 09, and maybe beyond, that will be driving the rental business. Today all types of businesses are feeling the pinch, high end and low end. With the feelings that seem to be so prevalent in our economy today who can blame the customer for only wanting to commit financially for the period of a rental?
We should take heart in the information that many renters want to purchase at some point in the future. Just three weeks ago the president of one of the largest internet rental referral services said that they survey rental customers post-rental. He stated that ’52 percent of the renters expressed an interest in purchasing sometime in the future.’ He also stated that his rental requests were up 60 percent from the same time last year. Our own industry analyst, Dr. Curtin, some years ago stated that 22 percent of first time buyers are past renters.
I ask that you read that last paragraph again, now read it again.
If I factor in the information that seems to be coming my way, I am left with the conclusion, or the prediction, that RV rentals are going to be very strong in 2009. RV rentals have always been relatively strong, in the good times and the bad. I see no reason for that to change; only to get even bigger and better.
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