Dealers
Talking to my niece the other day she told me she and her husband were looking to upgrade their caravan and she had been to the local dealer who informed her they are only selling used caravans and trying to clear stock and We had popped into shop the other day looking for some items and there was stuff all over the place the guy said they having a big sort out. A couple of days later my niece rang to say she was about to go to Broad Lane caravans Alcester to have a look around but was informed that it was in administration
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Dealers maybe are feeling the pinch and a few have closed as posted on here.
One thing of interest is that we took our caravan in for its service yesterday at the dealership where we bought it, now we were not going use them as it's now out of warranty (especially water ingress) and last year they charged £220 and the mobile engineer based at our storage charges £170 and no towing to the dealership. But we noticed when buying supplies earlier this year that they have put their service price down to £99 so we booked it in there, I did ask why the had halved their price and they said to get more business which they claim had done so. In fact we had to wait 2 months for a free date.
However they did have a lot of new caravans and MHs on sale, some 'reduced' by a few thousand and there were three caravans with a sold label on (they were priced about £25,000 with reductions) and one in the service bay getting its PDI I assume, and one MH at £67,000 (down from £73,000) sold too.
Not sure what all that means but just thought I'd post it.
Tyneside Leisure world based at Birtley, Tyne and Wear.
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A lot of commentators are suggesting that things are difficult for a lot of dealers. My own, White Arches, went into administration earlier in the year and were fortunately taken over by the Spinney Motor Group. I understand that the same group purchased one of the Broad Lane branches also. Trouble is there seems to be a glut of caravans for sale after the peak of Covid sales and there are a lot of previous years new caravans which have not sold. Even motorhomes, which up to now have escaped the worst of the turn down are now being offered at reduced price which was unheard of even a year ago. Some are blaming the cost of living crisis but I do wonder if someone has the money to buy a new caravan or motorhome they perhaps don't suffer as much as they are often using pension pots. It could be that the hobby is not as appealing to younger families, especially if not home owners. Us older folk are falling by the wayside due to age related health conditions, perhaps a perfect storm?
David
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David,
The quality small scale dealer I bought from end of March and took delivery on 03/05/24 still has for sale the one used caravan on his books advertised early April. He told me on the drive from the station when I collected that ordinarily that make of van would have been gone within the week and that the market generally was very slow (with some dealers ringing their own advertised number to check it was working as they were getting no calls!) I have since tracked his stock out of interest. He has bought in no new stock. He is now down to the one caravan mentioned and one van having sold maybe half a dozen since I collected to diminish his stock.
I think caravans are affected by the move to EVs with people still unsure on what their future requirements are. Motorhomes have yet to feel the impact of a move to EVs (But it is coming somewhere down the line.) We all rely heavily on diesels.
My guess is that the market in Europe for MoHos is still healthy. It is our poverty as a nation that is impacting. That is highlighted by a change in government with the watch word being that the government piggybank is empty.
Moho manufacture is a cottage industry which has a lot in common with the pre 1960s motor car industry. For the market to recover buoyancy economies of scale and rationalisation are inevitable so as to reduce the price new. (The growth of the market in campervans in recent years is a move in that direction.)
I foresee a buyers' market for MoHos throughout 2025 with caravans sales remaining severely compromised and a number of dealers going to the wall.
As for me I would love a stretched crosswise double birth over garage van of circa 6.2 metres length with a 9 speed automatic but, barring a lottery win, that it will not happen and I will stick with my 5 gear, 6 metre Hobby T500.
Chris
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MoHoSinger, You are right. Buying a caravan and hauling it around is an idea from the past and not one for the future. I even think that buying a motorhome might prove to have been a short lived craze that is already dwindling. There are so many other holiday options these days without a high level of initial capital expenditure. As the man said, Change is with us now.
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Yes there are other holiday options, but I don’t want them, hence I caravan. The fall off in sales has nothing to do with EV’s. A fall off in sales does not equate to a fall in use. Sales of EV’s have stalled with all car manufacturers rowing back on EV production. Ford are just the latest of many to announce their EV roll out is being rethought to match actual demand and admitted indirectly they have probably stopped ICE model production too soon.
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Yes that’s fine. We enjoyed it too.
But it doesn’t alter the fact that caravan touring is a declining, diminishing hobby. Buying, storing, insuring, maintaining and servicing a caravan is beyond many pockets, as is the big car to tow it. And Motorhome purchase is wildly out of range for most.
It’s ending. The next generation is already doing other things.
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I saw in MMM that both Bailey and Swift had made reasonable profits for the last year but the Erwin Hymer Group (Elddis) made a loss for the second year running. I am not sure where Bailey stand in the rankings of manufactured units but they are reported as having made 1100 motorhomes and 4000 caravans in that period. Its possible that the motorhome figure is lower than expected as all motorhome manufacturers have suffered from a shortage of base units.
David
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We are currently at the Norfolk Motorhome and Campervan show and if you were here I think you may just change your view. The showground is full of LV's of all shapes and sizes. The dealers are having boom period, one and a half days into the show and sold stickers are on a good 30% of MH's and campervans already. The majority of buyers seem to be on the younger side. The accessory sellers are also having a good time, I brought a windbreak and the seller sold out yesterday and had to restock overnight. No sign of an economic crisis here.
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The relationship between LV dealers and retailers is difficult and predicated on a constant or rising market. As an example, franchised dealers have to gamble on how many units they want (and will pay for) over the coming season. In addition, some brands will stipulate that the dealer must take a particular range of models (whether these can be sold easily or not) to maintain the relationship. As a result, some dealers still have 2023 units in stock, have slow sales on 2024 units and already committed to 2025 units for which they will have finance before they hit the forecourts. Personally, I don't buy the argument that caravanning/motorhoming is gradually fading out. The same reasons many people bought them for remain. The alternatives to fly abroad or go on a cruise remain and indeed, many members have a mix of holiday types already. EVs have been having a tough time recently and are excellent for some transport needs but not others. The automotive giants are focusing on other fuel/powertrain options and some have openly stated that they are returning to ICE units. The basic underlying principles and challenges for the LV market are ones that we have seen decades ago, albeit now coloured with climate change initiatives and COVID hangovers pushing the market. Yes there will be dealers going to the wall, yes there will hard decisions for individuals to make on how they spend their discretionary income, but ultimately there will be a re-balance and we will get back to something like normal. Unfortunately, we have also had to live with some poorly thought out energy policies, driven more by politics and virtue signalling than good engineering and scientific principles.
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Quite a turnaround from mid and early post COVID when most dealer stock was in single figures and shall I say a certain amount of profiteering occurred by manufacturers bloating prices and then retaining them as material and other costs have dropped. For example I have seen at my local dealer that a caravan retailing at say £23K pre covid rose to close to £30K and are now being discounted by the retailer by £5-6K as the market is now flooded with new stock. Predictably it is supply and demand but those who splashed the cash back then must be a little peeved, I am just surprised that some retailers didn't see it coming.
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There was a similar situation back in 2008 (and probably times before that as well). We had ordered a new caravan from Nene Court Caravans with delivery due early in the new year. We got a phone call in January telling us that they had decided to close down the caravan sales ( they were part of a larger trailer business) and refunded our deposit. It was a great shame as this would have been our third caravan from them and the service we always received was excellent. There was a little bit of serendipity involved as we eventually purchased a van with a better layout from another dealer!
Are caravan and motorhome dealers eternally optimistic about future sales, I suppose in business you have to be but it should be tempered by a degree of caution. As Dave T points out they often have to commit to buying new stock before they might fully understand how the market is going. I keep an eye on a Bailey Motorhome Facebook buying and selling group. It seems clear to me that a lot of the people selling relatively new vans perhaps purchased them in the Covid sales rush. Some are changing to a caravan, some through ill health but many seem to have had a change of mind on whether it suits them. Perhaps the original dream didn't match the reality?
David
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There is a video on Youtube by a caravan dealer and he says that dealerships generally still have a lot of 2023 caravans unsold and are faced with the arrival of already ordered 2024 stock. He says he foresaw what was happening and hasn't ordered any 2024 stock and is concentrating on getting rid of his 2023 stuff, servicing, and buying and selling pre-owned.
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It’s a bit puzzling to know what the current economic situation actually is. We have just come home from a week at Hawes, where most of the pitches were occupied on most days.
I noticed more rising roof camper vans than I have seen previously, a few new motorhomes, and the rest being caravans with many being towed by 4 x 4s.
In Hawes the pubs and cafes seem to be busy, lots of motorcycles and other visitors enjoying the good weather.
Are we seeing more outfits, of whatever variety, out and about because dealers are trying to shift stock or are club members still able to enjoy their hobby despite the economic pressures?
I don’t know the answer, but would be interested to hear others views.
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I wonder if the downside of that is that they might lose their dealership rights if they don't buy new stock each year?
David
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I think David Klyne is correct regarding dealership rights, of course this includes warranty work as well. The leisure vehicle industry has embraced some modern manufacturing methods using bespoke jigs and tooling and modern CNC machines. Unfortunately, it also seems to be less agile than many other industries. For example, dealers have to predict the future seasons demands and secure part of the overall production of the manufacturer based on an annual build programme with seemingly little or no flexibility to respond to ultimate customer demands. Whilst the manufacturers can flex some of their own in house assembly, I suspect that the supply chain for all the common caravan sub-assemblies and items like cookers, toilets, windows, electrical components etc is less than flexible and is delivered to the manufacturer in accordance with a programme agreed many months previously. This inability to flex cannot be good for the manufacturer, dealer or ultimately the consumers. Not surprisingly , the dealers are taking the strain and for some, unfortunately, they are going out of business. A new manufacturing model is needed for the Leisure Vehicle industry and who knows, this might even include a robust Quality Assurance and Quality Management system.
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We had a long chat with our dealer back in March as, while having our van serviced, we were looking at new vans which would be more suitable for our daughter and family to use too. Ideally ones with fixed singles, a decent size fridge freezer, and a good size shower room. It seems few manufacturers do fixed singles these days, and many “family sized” vans have only a small fridge, and a poor payload allowance.
We do not really want another twin axle, or one of the wider vans, but these seem to be the ones with the best payload upgrades, without which even adding a mover would be very limiting for carrying much other equipment in the van.
They suggested we visit again in August as there were quite possibly upcoming changes to one of the Bailey ranges.
We then got on to discussing the prices of new vans, they have found that these are way more than many young families can afford, they are looking to spend around £12k-£15k max, so are only looking at second hand models. The dealer had a good number of unsold new vans in their yard, however their service department was very busy.
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Hi KjellNN, One of the discounted vans a few miles from us with the layout that you mentioned.
https://www.edwardsleisure.co.uk/vehicles/new-adria-adora-612-dl-seine-ex-demo-only-31749/
the Altea Tyne is similar but with a bigger payload.
https://www.practicalcaravan.com/reviews/adria-altea-612dl-tyne
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Thanks, yes, those are the models which are the favourites at present, if we decide to buy a new van, we looked at both while on holiday last year, preferred the Seine. Unfortunately too far away from us, but there is a Seine available a bit closer to home, though more expensive.
We are still having the conversation about how long we want to continue caravanning, and how much use our daughter and family would actually make of it……..we would need to lend them a tow car as well. Not an easy decision.
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I agree the payload quoted on most models is woefully inadequate, but if you check the brochure you will normally find a free upgrade is available, which should make most work for you.
Like you I am at the stage I am wondering how much longer I will want to carry on. At 78 though still fit I do wonder.
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OP, it would appear that the son of the founder of the company, who now runs the company, has decided to retire and the business and premises will be out up for sale. I think the article below explains it much clearer than I can.
https://www.edp24.co.uk/news/24621095.greentrees-caravanstore-close-53-years-business/
Also it would appear that Teesside Caravans is closing, or has already, as their web site won't open.
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Nothing is silly if it’s the right thing for that person to do. Live and let live👍🏻
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