NEWNAN, Ga.

Little by little, Americans are finding out about recreational park trailers or “park models,” a 400-square foot cottage like RV that can be placed in an RV resort and used as a low-cost vacation cottage.

Last year, in fact, manufacturers reported 10,141 part trailer shipments, making 2006 the strongest period in the 21-year history of the park model business, according to the Newnan, Ga.-based Recreational Park Trailer Industry Association (RPTIA).

Last year’s figures were also noteworthy given the overall decline in RV shipments in 2006. “The park trailer business has proven itself to be one of the most stable segments of the RV business,” said Bill Garpow, RPTIA’s executive director. “This is because our buyers, for the most part, are people who are close to retirement or have just retired, so they’re in the strongest financial position they’re ever going to be.”

And since park trailers are used as vacation cottages, their buyers tend to have enough income to ride out the ups and downs of the economy, much like the buyers of the most expensive motorhomes, Garpow said.

Meanwhile, the stable growth record of the park trailer business has gotten the attention of national lenders, including Minneapolis, Minn.-based U.S. Bank, Kansas City, Mo.-based Commerce Bank and Triad Financial Services of Jacksonville, Fla., each of whom are rolling out new indirect financing programs for park trailer dealers this year. They join GE Money, which has long been the only national lender in the park trailer business.

Garpow said the availability of indirect financing could broaden the base of the park trailer market to include young professionals and families who want to invest in park trailers as a weekend retreat or seasonal vacation cottage.

“Indirect lending brings with it the opportunity for younger families to own and enjoy the use of these delightful vacation and seasonal dwellings with affordable rates and extended terms built to work within their family budget,” he said, adding, “Recreational park trailer owners who share the opportunity to experience this lifestyle with their children or grandchildren can delight in the prospect that they are providing them with life-long memories and sound family values.”

Park trailers or “park models,” as they are often called, are a niche product still largely unknown to most Americans, have surged in popularity in recent years as record numbers of consumers have discovered that the attractive, pointed roofed units can be used as low-cost vacation cottages.

Garpow said consumer interest in park models is driven by three factors: The rising cost of real estate, particularly in resort areas around the country; their relatively low cost, compared to towable or motorized RVs as well as site-built condos; as well as the increasing attractiveness of the units.

Unlike manufactured homes, which are a form of low-cost, permanent housing, park models are 400-square foot movable resort cottages that are designed exclusively for part-time recreational use. Typically upscale in appearance, they often include hardwood floors, bay windows and lofts as well as walnut, oak or maple cabinetry.

Most park models are placed on campsites, which can be leased for $1,500 to $7,000 per year, depending on location. However, some consumers also place their units on private property and use them as vacation homes, subject to local zoning requirements. And while condos and site-built homes in resort areas typically cost $200,000 or $300,000 or more, park models generally cost less just under $40,000.

“People are realizing that park models enable them to have a weekend getaway or seasonal retreat cottage for a lot less than a condo or site-built home, particularly if they want to place their unit in a resort setting,” Garpow said.