Good or bad time to buy?

[daanshepp]

Hi everyone

Me and my wife have been saying we'd buy a 2 berther forever and we've saved up finally.

With everything going on, we didn't know if this was a good or bad time to buy? Does anyone know if prices are low at the moment or whether this pandemic has meant more people are buying up.

We have just retired and are not in any rush and could happily wait a year if we can save a bit.

Thanks everyone

Dan

 

[PTA]

I think there will be bargains aplenty once (surviving?) dealers are allowed to reopen. Given the post -furlough situation, and when unemployment will, sadly, be significantly higher, money will be tight for many. Dealers may well have to discount stock significantly.
My advice is to wait...and watch.
It's highly unlikely that prices will rise in the interim.IMHO.

 

[otherclive]

Some dealers are still open but their prices haven’t been reduced. However they are offering starter packs and I think if an interested and serious buyer cane along they would be keen to close a deal. Have a look at Swindon Caravans. They are doing SD but how you convince a policeman that going to see a caravan outside your local area is “essential “ might be a challenge.

But I would wait until things map out as said above those in stock aren’t likely to go anywhere and with future unemployment going to rise the market fir vans isn’t going to sky rocket any time soon.

 

[Beehpee]

While I agree that the other replies are probably correct, I also wonder if prices could go up, it seems likely that air travel is going to be a none starter for the foreseeable future which means all the people who would normally go abroad are going to be holidaying at home so maybe there could be more people looking for caravans, it’s difficult to call and trouble is if you buy now and the price drops you will be gutted and but if it goes the other way you’ll be chuffed, if your a cash buyer it puts you in a good position to haggle and react quickly if it goes up and bargain more if prices are dropping, going by some of the horror stories on here if your a cash buyer people seem to recommend you put a chunk of the cost on a credit card to help if any faults with the van.

BP

 

[JezzerB]

I keep getting emails from Grantham caravans with special deals and cheap? prices-warranty etc-they are open for sales by phone =I reckon there are bargains out there to be had now as they are desperate to shift some caravans.

 

[audiorob]

Can't see which part of the country you live in, but if you are new to caravans be extremely careful if buying privately, the difference in price over similar dealer vans may seem attractive, but as other current posts indicate if you get any problems there may be little redress on a private sale. Once we are able it's worth visiting a few local dealers to see what stock they have. Bear in mind that unlike cars you would need to return to the selling dealer for warranty work, so a local purchase is advantageous. As another responder if you can get a starter pack thrown in you can save a stash of cash - battery, gas cylinder, step, water containers etc all mount up - after all a wastemaster and aquaroll are about £100 the pair! Difficult to know how prices will pan out, there may be deals to be done on either new or used vans as dealers need to increase turnover, and even an extended warranty is worth haggling for!
The rest of us have vans sitting about waiting for our season to be able to start and future bookings to be fulfilled, otherwise we have overheads like insurance, maybe storage and maintenance as well as depreciation without any useage.

 

[Beehpee]

Do you always have to return to the dealer that you bought it from if it’s warranty work covered by manufacture warranty ?

 

[Beachball]

Depending where you are based we found this place by accident when we was away on a Break it called
Ryedale Caravan & Leisure LTD
They have New & Used they are very reasonable price

 

[ProfJohnL]

Do you always have to return to the dealer that you bought it from if it’s warranty work covered by manufacture warranty ?

In theory you should be able to use any manufacture approved dealer, or mobile engineer, for manufacturers warranty work, but it doesn't always work and it may depend on the nature of the problem. Sometimes repairs may be better managed under the Consumer Rights Act provisions, rather than the manufacturer's warranty.

Just consider that if a dealer is busy with sales and servicing their own customers, customers who purchased elsewhere, may find a dealer is reluctant to take on extra work.

There are several good reasons to purchase as locally as possible, it can save time and travelling. Don't forget that legally under the Consumer Rights Act, that your contract is with your seller, not the manufacturer.

 

[Mel]

It might be a good time to buy, and I suspect that you will be in a good position to negotiate a deal, an awning or extra kit. However, if you are going to do this remotely then buy from a reputable dealer. Make sure that they are sending video of the actual van you are buying, not some library footage of the make. Get them to send you a recent damp report as well. Preferably a video of them testing and showing you a video of the meter reading. If you decide to proceed, make sure any deposit you pay is fully refundable if you don’t like the van when you see it. Get this in writing. Pay it on a credit card. Watch lots of you tube videos so you know what questions to ask and get the sales person to walk around the van on Skype so you can ask for a closer look at certain features.
I think we are all going to need to adapt to more remote business.
Good luck
Let us know how you get on.
mel

 

[JezzerB]

Yes keep us posted-use a good dealer or proceed with the utmost caution-plenty of ebay scammers out there and the like!

 

[Raywood]

I think the country will end up with a deeper division between the haves and have nots. Some people are going to be coming out of this very badly and will be struggling so they will not be out there buying caravans or anything else.
Some of us stuck in lock down are simply not spending at the same level but have the same income coming in and should come out of this considerably better off. We would have been out at least twice a week having lunch out and an evening meal out at least once a month, we are still running on the same fuel as I put in before the lock down so have saved at least two tankfulls and have bought little else but food. We have even saved on the site fees we would have incurred had we been able to go out. I am not bragging but that is the situation.
My son in law is in the enviable position of working from home and working overtime, as his firm is involved in health and safety, so he could do very well but others are not so lucky.
Those of us in that position will come out of this considerably better off and those people could be tempted back. What you then end up with is a lower number of potential purchasers with more money than they would normally have as potential customers and an over supply at the dealers. Those that were going to buy anyway might move up a bit and some of those that had intended to wait will be tempted if there are bargains out there.
Dealers will need the sales to clear their sites of caravans they would have sold in the last few weeks and will have to do whatever they can to move things on, just for the cash flow if nothing else. Those with the cash and who can bargain hard will get some excellent deals but do be wary of dealers on their last legs.
Pay any deposit on a credit card just to be sure you are protected and do not allow them to take your trade in until the new caravan is ready to take away.
Unfortunately we have only had the caravan two years so will not be replacing it but might possibly look at changing the car, as I suspect there will be some great deals there for the same reason.

 

[Gary Hulbert]

While I agree that the other replies are probably correct, I also wonder if prices could go up, it seems likely that air travel is going to be a none starter for the foreseeable future which means all the people who would normally go abroad are going to be holidaying at home so maybe there could be more people looking for caravans, it’s difficult to call and trouble is if you buy now and the price drops you will be gutted and but if it goes the other way you’ll be chuffed, if your a cash buyer it puts you in a good position to haggle and react quickly if it goes up and bargain more if prices are dropping, going by some of the horror stories on here if your a cash buyer people seem to recommend you put a chunk of the cost on a credit card to help if any faults with the van.

BP

I agree with you BP. Again my wife & I are new to caravanning & have also discussed it for a few years. We felt that it was now time to take the plunge taking into account the covid 19 situation. We saw a 2 berth & viewed it via an online video. We have put a refundable deposit down on it which 'reserves' the van until such times that we can view it in person (hopefully early June 😁). If we don't like it then we've lost nothing. Sales guy mentioned that they had reserved quite a few vans so I think their busy seems to be booming. Good luck Dan 🤗

 

[Raywood]

Given the number of people who unfortunately will lose their jobs as a result of the virus I think there is unlikely to be sufficient people looking to buy to clear the numbers of caravans left unsold over the last few weeks. There will be a lot who would have bought who will still be in the market but just hoe many will go ahead until things have settled is open to question.
There may also be a glut of used models being sold by people no longer able to afford the ones they have now

 

[Beachball]

That the only thing when you buy a new caravan you have to make sure your job is safe and you are not redundant unless you have saved up the money or been left some in a will you could buy straight away

 

[ProfJohnL]

I'm inclined to agree with Ray. The market is consumer led, and the after financial after effects are going to be tough. There are already some people who have lost their jobs, several companies have announced there will be job losses, some companies have closed full stop through the recovery process I am certain others will shed workers and some will become unviable. Basically consumer spending is going to take a downturn, and non essentials (such as leisure activities) will face a reduction in spending.

Caravan manufacturers will not start production until they have gauged the market. Stock levels at dealers will have to reduce before any new orders will stimulate new production.

 

[Mel]

Some Caravan Dealers are now open or reopening soon. Hopefully the market is struggling back to its feet.
mel

 

[otherclive]

I'm inclined to agree with Ray. The market is consumer led, and the after financial after effects are going to be tough. There are already some people who have lost their jobs, several companies have announced there will be job losses, some companies have closed full stop through the recovery process I am certain others will shed workers and some will become unviable. Basically consumer spending is going to take a downturn, and non essentials (such as leisure activities) will face a reduction in spending.

Caravan manufacturers will not start production until they have gauged the market. Stock levels at dealers will have to reduce before any new orders will stimulate new production.

The consumer market for “ big ticket” items was starting to fall at the end of 2019, evidences then by large numbers of cars in stock holdings, reductions in furniture purchases etc. Then early in 2020 other areas of retail started to feel the pinch too. Some commentators put it down to the Brexit effect. But that’s relatively small beer compared to the effects of Coronavirus which puts the 2-3 % Brexit effect into the shade by an order of magnitude with potentially longer lasting effects on the economy.
When we had young family and mortgage there were a number of recessions, combined with mortgage rates if 16% and inflation running at 25-26%. So, as did our family and friends we tightened our belts and any thoughts of non essential spending were dropped. Fortunately the two times that I was made redundant actually turned out very well, but we were fortunate many others were not. I guess the same uncertainty that affected us those years ago affects today’s consumers who still have to make ends meet through working. It’s not a nice position to be in.

 

[Andy1961]

Agree with the comments above but the bottom line is that nobody really knows what the future months (even years!) may hold. Many are predicting that a very BIG recession is coming. You'd expect that to reduce future prices but having said that is it worth delaying the purchase say 12 months to save a few hundred pounds? Personally I'd suggest you go for it sooner rather than later. As I've got older I've come to realize that time is such a precious commodity. You'll never get that time back.

 

[otherclive]

I agree but with a world recession sellers may reduce prices to move stock, but then manufacturers may cut back on production to ensure that supply meets demands whilst still retaining much needed profitability. I such circumstances prices can rise given that profit per item is increased through smaller production throughputs. Not until consumer demands rise and supply starts to exceed demand might you see reductions in price. Of course some manufacturers may get smarter and start to use more automation and robotics, but my brothers in law used to say "robots dont buy cars", they experienced several big downturns and cut backs whilst working in the Coventry car factories.

But as said above, time doesn't wait, so if you can afford to buy now then theres a big choice out there and probably good deals to be had, before this downturn really starts to bite the economy.

 

[waffler]

I am someone who has lost thousands buying new caravans over the years. My prediction is that cheap used caravans will be snapped up by people who can't go abroad and plan to only use it until they can. Mid priced ones will be in demand by people who have been frightened by the virus and will change their way of life to be safer. Full price new ones will be difficult to sell because of the number of people short of cash for various reasons. We are in a recession and jobs are threatened. If you go for a new one push for the best price and as much kit included as possible. Dealer specials will be particularly attractive because the dealer is committed to taking them from the manufacturer.

 

[RayS]

Do you always have to return to the dealer that you bought it from if it’s warranty work covered by manufacture warranty ?

No always. Many Approved Workshops will handle warranty work, including some of their mobile engineers. For minor matters e.g. replacing a gas strut on a locker or seat that you can do yourself so dealers will refund the cost of the component but not pay for your time - check with the supplying dealer first and they will want to see the receipt.
AWS routine annual service is usually acceptable for w warranty by manufacturers and can often be carried out at your home for a reasonable price.

(PS I;m not an Approved Workshop business or individual, but a Chartered Mechanical Engineer who has owned caravans for 50+ years and has always used AWS service since the caravan makers decided I was not qualified to do my own services. With the advent of the increased electrical services in caravans they are correct, as it is just not worth buying the test equipment and taking the Gas safe course just to do my own caravan)

 

[RayS]

On the main theme of the question - whether to buy now or wait a while it''s a little difficult to reply without knowing whether you want to buy now or used or what sort of budget is available. The caravan manufacturing year traditionally runs July to July so from about September you will see models dated from the next year.
Models change frequently, and so traditionally again Autumn has been a good time to buy previous years brand new models from dealers e.g. a 2020 van in October of that year and sometimes you can find one even older but still brand new.
Depreciation on new caravans is, like cars, steeper in the first years from new but perhaps not to the same extent. It also depends on inflation.

If buying from dealer pay at least the deposit if not the balance with a credit card for protection under consumer credit and protection legislation - you will find several threads on this on this Forum.

Another consideration may be what funds you would be putting out to other recreation or holidays if you postpone your decision - modest caravan holidays in UK could be much less expensive than flying away somewhere, perhaps renting a car etc etc. Again, you may be able to rent a caravan here for a few weeks to get used to the idea before making the big decision.

 

[Beachball]

i was always told never to buy a brand new touring caravan they lose thousands but you might fancy one but (That your choice you can get extra"s thrown in with the deal) Look at your budget go around to some dealers see if comes with a long Warranty and a couple services free .

 

[ProfJohnL]

If you use a dealer it will come with a warranty as required by the Consumer Rights Act - but most dealer will offer slightly more friendly warranty. If they don't - look elsewhere.

Warranties on second hand vans will be governed by the T&C's of the seller, Always read them! If you need warranty work to be done on a second hand caravan always check with your seller about who can do the work and still claim the warranty costs..