Grey nomads are generally pretty determined, by hook or by crook, to hit the open road … but the way in which they do it can inevitably depend on the economic realities of the time.
Just six months after saying that falling house prices weren’t frightening off older travellers from buying luxury RVs in which to ‘live the dream’, the chief executive of motorhome and campervan group Apollo Tourism & Leisure, Luke Trouchet, appears to have changed his tune.
Last September, Mr Trouchet said: “The mindset is ‘we’ve worked hard all our lives and we’re going to enjoy our retirement’.”
He said then that business was as steady as it had always been and new retirees generally paid $100,000 to $160,000 for their RVs, commonly without asking for finance.
Fast forward to today and Mr Trouchet says the outlook is dramatically different.
He says grey nomads are becoming spooked by the housing price downturn, potential changes to franking credit rebates, and the generally tougher economic conditions in Australia. Now it appears the absolute top-of-the-range caravans and motorhomes are being overlooked in favour of slightly less extravagant purchases.
“It’s just that the grey nomads are now a little bit wary … we are seeing a bit of trading down,” said Mr Trouchet. “It’s probably the sentiment, the uneasiness and the uncertainty.”
However economic uncertainty notwithstanding, it appears the wheels aren’t about to fall of the Big Lap Express any time soon.
“If you’re pursuing the great Australian dream of retiring and buying a motorhome to travel around, there’s only a limited amount of time to do it in while you’re still healthy and able,” said Mr Trouchet. “It’s not really a discretionary purchase … they will still buy, but it’s a lower priced vehicle.”
Looking forward, Mr Trouchet said he expected things to pick up again once the uncertainty created by this year’s Federal Election had passed.
Grey nomad Kay Anderson said that while her financial position had always been tight, she had found that where there was a will there was a way.
“We have upgraded a bit now, but we did our first Big Lap – which lasted over a year – in a tent!” she said. “And, while I was certainly a bit creaky at times and I know it wouldn’t be for everybody, we had the most amazing time and I wouldn’t change that experience for all the tea in China.”
Have you seen the real facts and figures on the housing downturn.The car industry is in the doldrums as well.But like my old man used to say, if you,re going to go down the shute you might as well fly down it. Stevo.
Motorhomers should be miserly by comparison to other retirees who at times spend hundreds of thousands even millions on luxury travel and cruising yachts for pleasure after working hard? We enjoy the luxury that our quality large motorhome affords us and we support Australian towns instead of bouncing around on less than predictable lakes and oceans or giving our hard earned to travel agents Don’t die wondering. It’s only money and life is short. Wayne
You honestly don’t need all the bells and whistles to have a great time on the road some go and buy something expensive then find out it’s not for them and try to sell but will lose a lot in return if you are not sure rent a van for a holiday and see
now that you can easily rent what you want with all the bells and whistles some elderly are just opting for that instead of owning it. that way if life takes a stumble you can return it.
now that you can easily rent, some elderly are just opting for that instead of owning it. that way if life takes a stumble you can return it.