A dealer’s take on the economy
Recently I spoke with a California dealer to ask his thoughts on the RV sales, the industry outlook and the economy. I mentioned that many thoughts that I have heard from a multitude of sources suggest that when the uncertainty of the election is over and the “bail-out” bill takes effect the industry will settle down and be more positive.
This dealer does not believe that the election or the overall economy is the problem. He thinks that the home mortgage situation is more important. If that portion of the credit industry will stabilize it will be much more significant than the overall economy outlook or the election. What do you think?
March 3rd, 2009 at 11:46 am
Amen. The banks are making it impossible to get anything done. From reducing floorplans to the tightest belt on lending in a very long time. While I understand the “why” I dont understand the extreme that they went to. It is almost impossible to get anyone bought with the restrictions they have put on a qualified buyer. They takes a well qualified buyer and rip them apart which overall puts a bad taste in the consumers mouth for the whole industry. Where where all these restrictions before? It is disheartening when you have a 800 beacon score and your only at 105% of invoice and the will only advance 80% of that invoice. How are we suppose to make a dealership with slow sales stay afloat when the banks are crippeling a deal that should be a No-brainer to the banks. I believe if the banks are going to scrutinize with such a fine tooth comb that the rates should at least be better than where they ae. With less advance, more money down, seems like the consumer is giving and giving and the banks are taking. “Oh and by the way Mr. consumer now that you have jumped through all the fire hoops we are going to bend you over with a great interest rate of 7.99.” Come on people the banks are going to kills us before anything. They have got to understand they are the reason whether or not our doors stay open. So with all this ranting and raving over my suggestion is that our lenders “get real”. When the industry does turn around,and it will, these are the same guys that are going to be knocking down our doors and interupting our lunch with the reps. I don’t know about the other dealers but I will remember who stuck with us during these times.
October 9th, 2008 at 10:37 am
This dealer has hit the nail on the head. While I think that the economy and election are a factor I believe as he does that the home mortgage situation is the catalyst for most of our problems. We have been living in dreamland for several years. Most of our customers have been living way above their means. What has happened is that reality has finally arrived. Some of our customers have only been able to fund our product with the false equity in their homes. Now all of that is gone and we have to go back to building and targeting our product to a market that can truly afford it. This won’t be easy and we will have to change our ways. It will be interesting to see who remains standing when the smoke clears. It won’t be business as usual this time.