RVIA Economic Impact Study

The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.

Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .

Some RV Lenders Issuing New Protocols for Military Lending Act

Tue Oct 4, 2016

RVDA has learned that some RV lenders are issuing new protocols regarding the Military Lending Act (MLA), the federal law giving active service members and their dependents certain consumer credit protections that vary from standard retail sales contracts. Other lenders have not issued any new protocols. The MLA went into effect on Monday, Oct. 3.

RVDA is advising dealers to check with their lender if they have questions about offering financing to active members of the military and their dependents. Among other provisions, the MLA imposes a 36 percent cap on the interest charged on most loans, computes the military APR differently from traditional APR and prohibits mandatory binding arbitration clauses and waiver-of-rights clauses.

Vehicle transactions were previously thought to be exempt from the MLA, but the Department of Defense (DoD) in late August recently issued so-called clarifying guidance that raises questions about the exemption. Attempts by the industry to seek clarification on the DoD Guidance have been unsuccessful.

The DoD’s MLA Guidance, without explanation, excludes RVs and motorhomes from the exempt definition for motor vehicle in their guidance. However, there is another exemption for any “credit transaction that is expressly intended to finance the purchase of personal property when the credit is secured by the property being purchased.” Towable RVs and motorhomes arguably are covered under the personal property exemption, but without a clear definition of personal property in the Military Lending Act or the Guidance, that status for RVs is not confirmed.

RVDA urges dealers to consult with their lenders and dealership counsel for guidance if arranging for financing active military personnel or dependents, according to a press release. RVDA will continue to provide updates to members on this issue as more information becomes available.