One Of The First Pillars To Fall??

Following wholesale vehicle values is easy, thanks to companies like Black Book and Cox Automotive Inc. who provide resources for all industries to calculate risk, or reward, when liquidating assets. However, when it comes to forecasting market conditions, many look at consumer trends instead of shaking their Magic 8 ball (and yes I have one right behind me in all my videos).

One of the first signs of a softening economy, from an automotive or lifestyle standpoint, is when recreation vehicle sales slow down... and that seems to be happening. Endless RVing provided a great video on YouTube sharing some insights from various sources, one of them being RV Pricing and Appraisal.

A few key takeaways from that video include:

- Monthly sale prices on four different classes was 16% LOWER May/June than Jan/Feb 2022 for identical models

- Dealer inventory officially at pre-COVID levels

- Days on hand inventory for RV dealers has doubled while consumer to consumer transactions are taking 3x longer

Now, how does this impact the overall health of the marketplace? Any risk or uncertainty makes lenders tighten up. Also, if people are overleveraged, this could increase defaults. Should there be more defaults, that leads to repossessions which turns into remarketing units. And while we are talking about the RV space now, this can turn into something bigger, quickly.

At Holman , the programs available to fleets and financial organizations do not vary significantly because when remarketing a repo, lease turn-in, or just a retired asset, you need to look at what is happening in the marketplace. This is not the time to shake the Magic Eight Ball and ask for help because by the time you get an answer you might like, the market has already changed.

To learn how Holman can help your remarketing efforts, please email me at [email protected] or go to Holman's Remarketing Solutions.