According to U.S. Energy Information Administration fuel prices are falling – and falling SUBSTANTIALLY. Their data shows that from early May to early December, a 7 month period, gasoline prices have fallen about 17% from 3.80 to 3.16 per gallon.
Locally, here in Southern Utah, diesel fuel is down to 2.94/gallon (as of 12/12/24.) In April, diesel prices peaked at about 3.75/gallon. Every day fuel prices have been dropping a penny or two. Interestingly, oil prices have remained nearly constant in the upper 60’s per barrel. Even with the recent unrest in Syria, oil prices are only up about $1 per barrel.
What do declining fuel prices tell us? AND… What does it mean for RV buyers and sellers?
Certainly declining fuel prices (BOTH diesel and gasoline) would seem to be positive for all parties – RV owners, RV buyers and RV sellers. I know when I am pulling my 5th wheel, my PER MILE cost was about 40 cents this summer. That adds up quickly! When fuel prices decline, it definitely helps!
So, as an RV owner, I’m happy about the decline, but lets look at the bigger picture and ask if oil prices are steady, why are fuel prices falling?
My thought… and I’m NOT an economist!
The economy is in TROUBLE. Trucks and truckers have been side-lined and industry is WEAK. If people are not buying, trucks are not delivering. There is less demand for fuel. As with any commodity, less demand results in falling prices.
In other words, falling fuel prices are a sign of a WEAK economy.
How might Trump factor in?
We can be assured about a few things regarding Trump. He is a BIG fan of oil drilling. In his words, as soon as he takes office, we’re going to “drill baby drill.” Simple economics would ensure that fuel prices will fall further when oil fields and pipelines are re-opened. One would hope that this would also re-ignite the economy!
In my view, that will depend upon a number of factors as I discuss in my previous post. The massive federal deficit and continued high interest rates will continue to drag on the economy.
We also know that Trump wants to…
bring business and industry back to the United States. In the short run, that means greater optimism. However, it will take time to build or refurbish the factories that will produce new and good paying jobs. Until then, the economy may continue to languish in recession (or near recession) conditions.
FDR had an advantage that Trump won’t have
During the Great Depression, FDR created the “CCC” and “WPA” (look ’em up.) These programs put men to work thus providing them with an income. Of course, FDR did not enter office with a 36 trillion dollar debt and nearly 200 trillion in unfunded entitlements! Trump faces both – and in my view, these are formidable challenges.
What this means to RV’ers…
As an rv owner, and as I noted earlier, I LIKE low fuel prices. I also like nearly empty restaurants and discounted goods. BUT, I know its a sign of a sick economy. I also have protected myself by moving “greenbacks” to commodities (silver and gold) and crypto’s. Feel free to contact me about what I buy and whom I buy from. I do like Goldbacks as well. (NOT financial advice!)
Speaking of RV buyers and sellers…
The economy is weak. As a result, RV sellers are not getting anywhere near “book value.” RV buyers have the “pick of the litter” and if you know how, GREAT deals can be negotiated. My Concierge RV Buying and Selling Service has provided great value for many. You can learn more here – and be sure to read my reviews at the bottom of this page.
Bottom line: While falling fuel prices would seem to benefit rv sellers and create more rv buyers, more factors must be considered. Not the least of which include loan rates, inflation rates (which controls discretionary income) and the health of the overall economy.
Winter is nearly here… are you a Winter RV Camper?
**RV SKIRTING NEWS** My favorite RV skirting company is now offering RV SKIRTING KITS. They can ship anywhere in the entire nation (and Canada!) This is high quality rv skirting material and the kit includes all you’ll need – zippers, snaps, turnbuckles, glue, and even a rivet gun. Contact me for a quote for your camper.**
In closing…
I welcome your thoughts on what I’ve shared here. Please leave comments below. Comments (and likes) are always welcome on my video on YouTube! Lastly, you’re welcome to subscribe to my free newsletter below to be notified of new posts as they arise.
Darla’s,
I know you hate Coachman, but we plan to purchase a 319 leprechaun after the first of the year, and here again you suggest that we purchase used. Since I have always stayed away from used cars, here again im thinking we would be safer with a new (Ford) motor home.Have you had any luck with new motor homes (say, under 20,000)?
Dave, Please call me at 307 269 2546 (mountain time) to discuss this in depth. I’d really love to understand why you’re intent upon purchasing a TRULY substandard product – and – I’d be glad to discuss BETTER alternatives with you ALONG WITH my thoughts on new vs. used RV’s – it is NOT the same as with cars. BUT, I will not attempt to dialogue with you here. I has to be via an actual dialogue over the phone. Lastly, when you refer to new motor homes under 20,000, are you referring to dollars? IF so, I would not entertain a new camper at such a price – heck – you can’t even buy a new CAR for $20k and expect quality! Al