Caravan prices set to go higher

If you think Australia’s elevated new caravan and motorhome prices are already over the top, just wait until the 2022 Let's Go Queensland Caravan & Camping Supershow packs up on Sunday (June 12).

Many major brands have pegged their prices for the Brisbane show, but will let rip on Monday to incorporate the latest even-higher supplier and freight-inflated prices, with one Queensland off-road specialist caravan manufacturer suggesting that prices will continue to surge for the next 12 months or so as they're forced to pass on component costs that they've been told will continue to increase by as much as five per cent per month for the foreseeable future!

Manufacturers are generally embarrassed by the price hikes, but point to their long delivery times – already out to early 2024 in some instances – to support their case.

Melbourne's Lotus Caravans was warning potential buyers to 'Beat the price rise' and save up to $9000 by ordering a Lotus luxury off-road van at the Queensland show.

The cost of new motorhomes seem to be rising faster than caravans in many cases, with one example being the $164,534 show pricing for the Renault-based Windsor Daintree -- around 50 per cent more than 2020 pricing.

Moving prices

A 10 per cent deposit with the balance on delivery was the norm in the industry in previous times, but with factory leases and staff to pay each month, many manufacturers and dealers have been driven so close to the wall they can focus on the mortar.

The response for some has to ask customers for progress payments so that they can satisfy their cash-strapped suppliers, with some asking for the full purchase balance on confirmation of a production and delivery date.

Supply lines of everything from semi-complete Chinese-built campers and caravans to European windows and space heaters are affected by the delays started by COVID and fanned by Russia’s invasion of Ukraine.

This has led some Australian manufacturers to turn to local suppliers for products they previously imported, or to invest in the tools to produce their own, with Melbourne-based Snowy River now making its own windows in house using innovative ‘bubble’ technology to improve thermal and sound insulation, displaying them at the show on its new high-riding Multi-Terrain SR20 caravan.

Queensland’s Zone RV will soon install Australia’s first full-size 3D printer in its new Coolum Beach factory now nearing completion that will allow it to turn out complete composite caravan sides in-house.

Shipping delays

Component or shipping delays have also choked the supply of a number of overseas products.

Italy’s Wingamm which supplies the Little Gem models sold in Australia, reportedly has a number of nearly completed caravans ready to ship once complete, while increased freight rates are pricing a number of China-built caravans out of the market, as they now must compete directly with the Australian-built models they once copied.

Some savvy buyers have seen the current supply shortages as the opportunity to turn a tidy profit.

Some have joined the new caravan queues at today’s prices, but have delayed delivery until the last moment, pocketing the difference between their purchase cost and today’s prices.

It's not all two-year waits for buyers though; with MDC Campers at the Brisbane show advertising relatively quick delivery times of around 12 weeks or less, depending on the model.

A salesperson on the Kratzmann stand at the show was quoting November 2022 delivery times on a range of the latest Coromal caravans, or less fussy buyers could get immediate delivery on some selected show vans.

Most manufacturers displaying at the Brisbane Show tended to agree on one thing though: this is the new 'normal'. And don’t expect prices to drop again when the current madness blows over. They are most likely here to stay...