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On The Road Again

Tribune photo by FRED BELLET

Ron Fredrick of Atwater, Minnesota emerges from his fifth-wheel RV and gazes out on some of the more expensive RV's at The Quail Run RV Park in Wesley Chapel.

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By JENNIFER HOWELL, Tribune correspondent

Published: February 10, 2008

Sales of new recreational vehicles may be down nationwide, but entrepreneurs in east Pasco County say high gas prices and high interest rates haven't significantly slowed their RV businesses.

Bob Phebus, director of sales and marketing for Marathon Coach Inc. in San Antonio, says the shaky economy hasn't had an effect on Marathon's high-end market. The luxury motor coach line runs $1.5 million to $2.5 million a vehicle.

"Our sales are holding steady from the previous season," Phebus said. "This market is not affected as much as a family customer who wants to by an RV. Our purchasers own their own businesses, they're wealthy and they're spending their money.

"The dealers that cater to the blue-collar, middle-income customers are struggling, because those are the people who have adjustable-rate mortgages. Those are the people who are hurting."

At Crossroads RV Center in Dade City, co-owner Cindy Dykes has seen a slight difference in the used business's bottom line, but it is nothing like the slump new RV dealers have seen, she said.

"We've always sold later-model, preowned RVs," Dykes said. "It helps us compared to the new dealers, because we don't have high prices here."

Although gas prices are about $3 a gallon, customers still want the larger motor homes, according to Dykes.

"The Class A motor homes are still what everybody wants," she said. "Most people buying Class A motor homes are retired people who are going to be spending a lot of time in them."

Greg First, owner of First RV and Trailer Supplies in Zephyrhills, says business is good.

"The people that come down here are regulars who spend their summers up north and their winters here," he said. "Repair parts are good. That says to me, people are still coming down and RVs are still breaking down."

The Quail Run RV Park in Wesley Chapel is at capacity, says store manager Joyce Wadleigh. "There are still people out there traveling," she said.

Seven Acres RV Park and Sales in Dade City has a few lots available, said office manager Sandy Cooper.

"All of our regular people have returned," she said. "I think the gas prices offset the fuel prices they would have paid if they had stayed home" up north.

Lake Pasadena RV Park and Fish Camp in Dade City and Encore Tampa North RV park both report full occupancy.

The RV business is far from obsolete, according to Dykes, who has been in the business for 27 years.

"Gas prices probably are keeping some people from making the decision to buy an RV now," she said.

"But, there are so many different reasons as to why people buy RVs. I always say the real reason people buy RVs is for their pets. If they are going on a trip they can stop at a campground, leave the air conditioning on in the RV and their pets are fine. Campgrounds always have a place for them.

"With the high property taxes, a lot of people buy an RV to live in if they are on a fixed income."

With the baby boomer generation approaching retirement, Dykes expects the RV market to jump in the next few years.

"As far as the future, once we get through this economic slump it's going to be real good because of the baby boomers getting ready to retire," she said.

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