Forget about that old pop-up camper your parents kept in the back yard when you were a kid.
Janeen and David Bouslaugh, both 32, want a “toy hauler.” They want one so badly that they’ve driven to a place called Traveland USA in Irvine, more than 38 acres with ducks, chickens, a pond, some shade trees and row after row of recreational vehicles.
The Bouslaughs, from Buellton, Calif., want an RV with a drop-down back panel so they can load two four-wheelers and their Jeep into what will turn into living space during weekend outings.
They’re looking at a vehicle in the 38-foot range and started the day out with a $20,000 budget in mind.
“We want something we can put everything in,” says Janeen Bouslaugh, a restaurant manager who loves to head out to the dunes near Pismo Beach, Calif., for four-wheeling and camping.
The Bouslaughs represent a growing segment for RV makers: young consumers who are mobile and outdoorsy and have the means to finance a little home on wheels.
Thanks to these consumers and low interest rates, the RV industry is headed toward its biggest year since 1978, an industry group says.
Sales are up 20 percent for the first part of the year, according to the Recreation Vehicle Industry Association.
The gains aren’t fueled by just newly retired Baby Boomers or Snowbirds.
“Sales are definitely trending toward a younger customer,” says Chris Braun, a senior vice president with Fleetwood Enterprises, one of the largest makers of RVs.
“About 10 years ago, a lot of our product was sold to people who were in retirement or nearing retirement,” Braun said.
Today, he says, the company’s fastest-growing segment is the 35- to 54-year-old group. Nationally, that group owns about half of all RVs.
RV dealers trace today’s sales surge to Sept. 11, which changed Americans’ appetite for flying and kept consumers close to home with family and friends.
RVs, experts say, let consumers control their travel. No airport security lines. No hassles with getting a smoke-free hotel room or figuring out where to eat or how to find a bathroom. RVers pack their food and clothes and go.
“People want to eat when they want, sleep when they want and go when they want. You get to see America at your own pace,” said Andy Coyle, president of Canyon RV Center in Irvine’s Traveland.
That doesn’t mean that RVs don’t come with a few drawbacks.
In Orange County, Calif., for example, many owners pay to store their vehicles because of rules prohibiting them from parking RVs on their property or street.
Those who buy are typically homeowners who have money to spend on travel.
Business has and is expected to remain steady, despite rising interest rates and high gasoline prices, because consumers have money.
“This is discretionary spending,” said Ron Muhlenkamp, whose Wexford, Pa.-based Muhlenkamp Fund owns about 2 percent of Winnebago shares as well as stock in Monaco Coach, another RV manufacturer. “These are things that people want now.” Even if interest rates rise, Muhlenkamp doesn’t think it will slow sales much because about one-third of consumers pay cash.
Others finance a purchase. Many can get a tax break and write off the interest on the loan if the RV meets the requirements for a second home. In general, the RV must be used as security for the loan and have basic sleeping, toilet and cooking accommodations.
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For many consumers, the high cost of fuel isn’t a major issue. It’s not like they’re driving the vehicle, which usually gets at most 10 miles per gallon, every day.
“I’m saving so much in meals and per night because I’m not staying at a hotel,” says Tanya Borg, 35, a math teacher from Yorba Linda, Calif.
With the RV, the Borgs don’t have to spend $20 to $25 per night for a fast-food dinner. Instead, they can cook in the little kitchen for their children, Stefan, 11; Karsten, 9; and Tiana, 7. And hookups for electricity and water run $35 tops per night. That beats any hotel rate for their family of five.
Because they bought used, they paid $46,000 for their RV. Storage costs the Borgs $110 per month.
The Borgs started out renting and eventually bought a 27-foot motor home before moving into a vehicle that would accommodate their children.
“If you don’t do more than two trips a year, I’d definitely rent,” Hans Borg says. The Borgs estimate they spend six weeks per year in an RV. Even with the loan and storage costs, they believe they come out ahead with an RV versus airfare to a destination, hotel expenses and meals in restaurants.
As for the Bouslaughs and their shopping trip?
They wound up visiting all of the dealers at Traveland and came home with a ton of brochures.
The couple are trying to narrow their choices.
Janeen wants something that feels “like a real house,” while David wants to make sure he has enough space to carry the vehicles.
“We’ll be back,” she said. “I think we’ll be spending close to $40,000 though.”