RV Blog

WASHINGTON — Loans to recreational vehicle dealers and consumers could be easier to come by if Congress authorizes the release of $350 billion associated with the financial rescue plan passed last year.

The new legislation would make RV loans insured by a government institution set up to protect banks from losses if borrowers default on their debts. The first $350 billion Congress approved as part of the so-called financial bailout gave similar protection only to auto, credit card and student loans.

U.S. Rep. Joe Donnelly, D-Granger, pushed for the change in the new bill, adding "and other vehicles" to the types of loans included in the Term Asset-Backed Securities Loan Facility.

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RESTON, Va. — As part of an ongoing effort to highlight the affordability of RV vacations in tough economic times, the RV Industry Association has broadly distributed the press release below to the consumer media outlining hot trends in travel for the new year.

RVIA members and dealers should feel free to adopt the same themes and language for their own local media outreach efforts, as well as to check out the affordability messages on www.gorving.com.

2009 Travel: What’s Hot and What’s Not

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Flooding forces evacuation of Camping World campground in Tennessee

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Keystone reports market share gains

GOSHEN, Ind. — Keystone RV Company achieved a record 22.3 percent market share in travel trailer and fifth wheel sales for the month of October, according to Statistical Surveys, Inc. This represents an increase in market share of more than 19 percent from October of 2007.

Acknowledging that several factors are contributing to the large gains, Keystone officials are quick to credit an intense product development initiative over the last year that has resulted in the creation of over 150 new models and several industry-leading features.

According to Ron Fenech, Keystone president and CEO, “We understand

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FAIRFAX, Va. — The RV Dealers Association is encouraging RV dealers across America to contact their senators and congressional representatives to encourage them to make more loan money available to finance the purchase of recreation vehicles.

"Your dealership can help RVDA reach out to government leaders in both parties to help them understand the vital role the RV industry plays in the economic well-being of our country," RVDA President Mike Molino wrote in an e-mail to members. "RVDA members and their employees should also contact their congressman and U.S. senator on this important issue. Your association is teaming up with the American Recreation Coalition and with other recreation trade groups to present a unified message on the critical need to make wholesale and retail financing available for RV purchases.

Congressional representatives need to hear from their constituents, Molino said, so all dealership’s and their employees are vital to this effort. RVDA sent letters to President-elect Barack Obama and Secretary of the Treasury Henry Paulson with the important message that banks and other financial institutions receiving aid under the Troubled Assets Relief Program (TARP) and other initiatives need to make consumer loans available for RVs on an equal basis with loans for automobiles, educational expenses, and purchases with credit cards.

"Your letters and e-mails on this issue will also raise the industry’s visibility in Washington," Molino said.

Molino suggested incorporating these talking points into letters sent by dealers and their employees:

• The year, a sharp drop in consumer confidence and credit problems that are rooted in real estate and sub-prime lending practices that the recreation community had no role in creating.
• There are an estimated 12,332 RV-related businesses in the nation with a combined payroll of nearly $5 billion for American workers in the manufacturing, retail and service sectors – employment which totals some 150,000.
• One out of every 12 American households owns an RV – a category that ranges from inexpensive pop-up tent campers to large, self-propelled motorhomes. Today, there are 8.5 million RVs in operation, three-quarters of which are towed units, not motorhomes.
• Describe your personal story and detail what has happened to your business in terms of sales and jobs. Humanize the impact and talk about the pain of cutting back on jobs, benefits and expansion plans.
• Include a clear “ask.” You, your employees, and your customers need help. You need the member to make sure that congressional support for businesses and consumers includes help for the RV and outdoor recreation industry. Ask the congressional member to write a letter to President-elect Obama making these points:
  • Economic recovery depends heavily on a rebound in consumer confidence, and consumers who are credit-worthy and encounter barriers to financing purchases will make this rebound more difficult.
  • Both banks and non-bank financial concerns being aided under Troubled Assets Relief Program and other initiatives need to make consumer loans available for all traditional uses, including purchases of recreational items including boats and RVs, on an equal basis with loans for automobiles, educational expenses and purchases with credit cards. Note the special importance of this provision to employment in the United States associated with the RV industry, where an overwhelming majority of the new units are US-manufactured.
  • The Treasury Department should address the issues faced by recreation businesses in commercial lending – often referred to as floor-plan financing – which has exacerbated the challenges faced by recreation businesses across the nation as sales have slowed.

To view a copy of a letter sent by RVDA and RVIA to President-Elect Obama and Treasury Secretary Paulson, click here.

SOURCE: RV Dealers Association
December 15, 2008

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December 15, 2008 16:45

FAIRFAX, Va. — The RV Dealers Association has joined more than 75 net operating loss coalition partners in calling for federal legislation to extend the net operating loss (NOL) period for small businesses.

An extended NOL carryback period is a proven economic stimulus measure, one that can deliver vital help to our nation’s struggling economy. Because capital to continue operations (payroll, debt payments, etc.) is extremely tight, if available at all, the need to transform a future tax benefit into cash today is critical to maintain otherwise viable businesses.

In the past, Congress has used NOL carryback relief as a ready tool to help lift the economy out of recession. A temporary extension of the NOL carryback period would provide an immediate infusion of cash for those companies most in need. Under current law, businesses may carryback losses for only two years, generating a tax refund to the extent of taxes paid in those years. Losses that cannot be absorbed in these two years are carried forward, for use against future taxes that may be owed.

RVDA and the NOL Coalition strongly support enacting legislation at the earliest opportunity by working with President-Elect Obama’s transition team. "We hope to gain the incoming administration’s support for extending the carryback period for net operating losses (NOLs) to five years from the current two-year allowance for tax years ending in 2008 and 2009. It should also include alternative minimum tax (AMT) NOL relief by temporarily suspending the 90 percent limitation on the utilization of AMT NOLs for this period," said RVDA President Mike Molino.

A specific bill is expected to be introduced early in the next session of Congress.

SOURCE: RV Dealers Association press release

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