Financial Hardship in the RV Industry Impacts Consumers and Lemon Law Claims

Financial hardship in the RV industry is causing a wave of challenges. Rising costs, supply chain issues, and shifting consumer demand have forced some manufacturers to consolidate operations, merge brands, or even close facilities. For consumers, this trend has real consequences, particularly for RV buyers, owners, and those pursuing lemon law claims.

At RV Auto Legal Team, we guide California consumers in understanding their rights and safeguarding their interests when purchasing or owning RVs impacted by recent developments in the RV industry. We are dedicated to ensuring you are informed and confident in navigating legal challenges related to your RV.

Financial Hardship in the RV Industry Driving Consolidation

Many RV manufacturers, including Heartland RV, have been integrated into larger companies like Jayco under Thor Industries. This consolidation is primarily a response to financial pressure rather than strategic growth. Key factors include:

Example: Heartland RV’s integration into Jayco preserved brand continuity and service networks while reducing overhead costs for Thor Industries.

How Are Consumers Impacted by Financial Hardship in the RV Industry?

1. Limited Product Availability

• Some models or floorplans may be discontinued or produced in lower quantities.
• Buyers may face less choice and higher demand for remaining units.

2. Parts and Service Challenges

• Parts inventories may shrink during consolidation.
• Authorized service centers may close or merge, causing delays in repairs.
• Consumers should verify parts availability and service options before purchasing.

3. Warranty Considerations

• Warranties may be administered differently after acquisitions.
• It’s important to confirm that the original warranty is fully honored by the acquiring company.

4. Price Implications

• Consolidation can reduce competition, potentially leading to higher prices for both new and used RVs.

5. Dealer Network Changes

• Smaller dealerships may close or merge, affecting trade-ins, financing, and service access.

6. Risks for Used RV Buyers

• Brand stability and service networks may shift after consolidation.
• VIN checks, service records, and warranty verification are crucial to ensure long-term support.

7. Potential Benefits

• Larger corporations can provide more reliable service and parts supply.
• Customers may benefit from stronger dealer networks and improved operational efficiency.

How Does Financial Hardship in the RV Industry Impact Lemon Law Claims?

Financial hardship in the RV industry and manufacturer consolidations make it harder for consumers pursuing lemon law claims to get fair results. As companies face economic pressures and merge resources, they often cut costs, streamline operations, and spend less on resolving customer complaints. This environment can cause longer wait times, less customer support, and more resistance from manufacturers when consumers seek help for defective RVs under lemon laws.

1. Difficulty Completing Repairs

• Parts shortages and closed service centers can extend repair timelines, complicating lemon law requirements for “reasonable number of repair attempts.”

2. Warranty and Manufacturer Responsibility

• If a brand is folded into another company, consumers may need to navigate a new corporate entity for claims.
• Warranties may be honored differently under the new ownership.

3. Dealer and Manufacturer Liability

• Delays in response or repair by financially distressed manufacturers can require consumers to escalate claims or involve legal channels.

4. Reduced Recourse for Consumers

• Insolvent or failing manufacturers may lack funds to settle claims.
• Consumers may need to use the dealer’s surety bond or the finance company as a holder in due course to recover damages.

5. Consumer Strategy

• Document all defects and repairs in writing.
• Confirm warranties and lemon law coverage post-acquisition.
• Contact the dealer, manufacturer, or finance company promptly if repairs are not completed.

Protecting Yourself as an RV Buyer or Owner