Travel: Gas prices are not affecting RV, boat sales

By Brian Sargent

Published: April 20, 2008

The nation's subprime mortgage crisis and high gasoline prices worry many Oklahomans but apparently not those buying recreational vehicles and boats — especially older people who may have more disposable income.

"I pulled back on inventory because I thought sales would slump. But that didn't happen. In fact, we have actually increased our motor home sales in the last two years,” said Gary Wyatt, general manager of McClain's RV Superstores in Oklahoma City.

The RV life is not just for retirees, although people who've amassed a lifetime of wealth can more easily afford the biggest RVs.

The tax breaks associated with paying for an RV are generally the same as for a home.

In other words, interest paid for an RV — or some large boats — is deductible from federal taxes owed.

There are limitations on the tax deductibility of interest paid on second homes, mainly having to do with rental property and nonresidential uses.

But RVs count as second homes, as long as four conditions are met: The RV itself must secure the loan, and the RV must include sleeping, cooking and toilet facilities.

The tax deduction can add up fast with some top-of-the-line RVs topping $200,000.

The average motor home sells for $70,000 to $80,000 — more than some new houses in Oklahoma City.

Boat sellers are also beneficiaries of disposable income, despite gas prices that frequently top $3 a gallon.

Boats also qualify as second homes as long as they meet the same four requirements as recreational vehicles.

Todd Wilson, owner of Edmond's Wilson Watersports, said high gasoline prices have slightly affected his store's sales.

"I think people are accepting high gas prices. People are rebudgeting their households. They're changing their entertainment expenses,” he said. "With the initial gas crunch, there was a little decline in sales in my end of the market.”

Wilson sells boats for nearly $50,000 each.

Earlier this year, Wilson Watersports was among almost 20 dealers at the Original Free RV & Boat Show at State Fair Park.

The event attracted 30,000 to 40,000 people during the three-day show.

More than 40 exhibitors have displays on outdoor travel and leisure products.

"I pulled back on inventory

because I thought sales would slump. But that didn't happen.”

Gary Wyatt, general manager of McClain's RV Superstores in Oklahoma City

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