Motorhome values fall 11.9%

Motorhome and towables values followed a downward trend in February, while auction volumes rose month over month due to an expected uptick in seasonal product demand. “This is typically when we see more activity in the RV market,” Eric Lawrence , principal automotive analyst of specialty vehicles at Black Book , told Auto Finance News . “People want to buy them when the weather is nice. Nobody wants to buy one in November, and then not use it for five months.” Average values for motorhomes and towables declined year over year in February in line with typical fluctuation in values based on seasonal patterns, Lawrence said. February motorhome values rose 3.1% MoM but fell 11.9% YoY to $55,203, according to the most recent data from Black Book. [caption id="attachment_58339769" align="aligncenter" width="882"] Source: Black Book [/caption] For towables, values fell 0.8% MoM and 13.8% YoY to $18,167 in February, following similar fluctuations from the previous months. [caption id="attachment_58339762" align="aligncenter" width="886"] Source: Black Book [/caption] “There might be a little sawtooth pattern, up-and-down and up-and-down, but the big story there is that [values] are declining,” Lawrence said. Motorhome auction volume increased 22.5% MoM with an average model year of 2015, according to Black Book . Towables auction volume rose 11.9% with an average model year of 2019. Carryover inventory As average selling prices continue to decline, some dealers are still working to get rid of vehicles produced during the peak pandemic months when demand was at a high. Demand “is definitely slower” compared to previous years, Robert Bogomilov , marketing manager of Denton, Texas-based Outback RV of Texas , told AFN . “We carry Shasta here, which is a regular RV brand. We still have 2022 models [on our lot],” he said. Brands like Shasta , which are available at several other dealers, are proving to be harder to sell, Bogomilov said. “We have to keep reducing it until people think it’s a good price,” he said. March RV values are expected to resemble February’s trends, with room for a slight continued increase in motorhome and towable values and auction volumes sequentially due to the seasonal tide, Lawrence said. “We're getting back to roughly where things were pre-COVID,” he said. “There’s nothing out of the ordinary or unusual happening. It’s springtime and people are starting to think about buying all the fun stuff.” Register now for the annual Auto Finance Summit East 2024 , May 1-3 in Nashville, Tenn., where lenders, dealers and fintech innovators gather in an event designed to bring the power of technology to a cross section of industry players. Visit AutoFinance.Live to learn more.

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