b"There has been concern regarding the potential for negativeHow would you describe the general state of the RV equity trade-ins resulting from the Covid sales era. What per- market, based on what youve observed lately?cent of your current prospects are impacted by this?Its solid despite in-19% creasing interest rates, Less 14% soft demand and other than 5% Worst its been sinceOver 25% the 2008-09 recession headwinds12% 5% - 10% 28%27% Approaching something 19% 39% like pre-pandemicNervous about inflation,normalcy42% potential recessionand other challenges10% - 25%spondents:who have managed their inventory wellRECT is a joke. In my 35 years inwill feel the stress on margins from the RV industry; parts and service hasdealers who over stocked.only gotten worst and the factories do It appears most industry execu-not care at all.tives, both suppliers and builders, areI think the industry has lost touchunder the impression their quality is what camping was all about. Wheregood. In most cases this is laughable. has affordable family fun gone?They need to go work at a service writ- Until the industry accepts pre- ers desk for a month. sale issues with inventory are defects We don't have any 2022 units, andnotawarrantyclaim,wewilland only 38% of my present inventory never address the quality problems.are 23's. That being said, I am not over 35% plus of all warranty work done isordering for the spring rush. I'm not in performedpre-sale.Thishastothe least worried about replacing what change.we sell. Yourhighestcategoryforthe Our sales dollars are decent, but negativeequityquestionis25%ofour unit count is worse than the 08/09 trade-ins.Oursisover80%ofourrecession leading me to believe our trades today are upside down. My onlyBTA has been overly impacted by the thought about your reasoning of onlyrun up in pricing. Our fixed ops are allowing an answer of 25% is that youdoing very well. I'd love to hire more dontwantnumberstoreflectwhattechnicians but our area is experienc-they truly are. It is crazy what we diding a serious brain drain in that area. I to the consumer during COVID! Its ac- have had zero prospects in over a year tuallydownrightcriminal!(Editorsfor technicians. Note: The response in question said, Overall, I am optimistic we can Over 25%)do better to maximize the opportunitiesWe are still working through trail- we get on the sales floor as well as ers that cost us more in 2022 than wecreate a few new ones along the way. now can pay for a 2024 product. SomeWe are going to be just fine.WCMmanufacturershikeduppricestoo sharply in 2021 and 2022. Will have to lose money on them.We could use more manufacturer help moving leftovers that invoiced for more than current models.We are small dealership and have always been able to get units repaired quicker than the mega-dealers. Also, the manufacturers to start caring about the retail consumer at all dealers rather than their mega-dealers. Pricing needs to be the same for all dealers, big and small.Manufacturers underpaying for warranty work is a major problem. In-dustryneedstoreadjustdowntoa more normal market post-COVID.Aligning responsible RV whole-sale production with retail sales is pru-dentandhealthyfortheindustry long-term. There is too much consolidation both from the manufacturing of com-ponents to dealers. It will not be a good business for a small dealer to be in in the coming years and the customers are going to suffer because of it.Leftover inventory continues to be an issue. The number of 2023 vs. 2024unitsisnotassignificantas 2023 vs. 2022. However at our current demanditfeelsverysimilar.Con-sumers have been more conservative aboutpriceandpayments.Dealers WOODALLSCM.com April 2024 33"