Re: Could our coaches increase in value?
Reply #2 –
Yahoo Message Number: 116055
I know for a fact, as I tracked it, that many of our the coaches I was looking for on our Short List did see first a large dip from the 2007 recession. We kept the same budget, and pulled our retirement coach purchase forward by 2-3 years to take advantage of the 'buyer's' market. We did not get one of the many 'killer deal's' that I read about during this timeframe. Where people just had to get out from under homes, airplanes, boats, RV's, etc. And from what I saw, this was regional more of a swing down in prices, based upon a specific local's volume of people living beyond their means, or on Home Equity loans up to 125% LTV days. I do feel we paid a 'fair' price for our coach for that timeframe of the economy. (And note, we were in Southern California, with lots of people living beyond their means and sadly also many living paycheck to paycheck too.)
I watched the coaches on my short list go up in value, starting early 2010 thru 2013. I paid, adjusted for allowances from the seller, about $130K for our coach. I saw many sell, like using PPL, or Ebay's, or the site with the Gorilla or Monkey Name in it all recorded 'sold price' - up above $150K during this time. I'd also had a good idea of the prices of Alpines, Beaver Patriot Thunder Marquis, Monaco Executive/Signatures, Newmar Moutain Aire on up the model line. Foretravel U295/320 and upward models. And those prices also seemed to go up too.
I think one of the facts was that I'd been targeting model years before heavy smog changes came in. And with some of the newer coaches having testing pains from smog related changes, CAT Acert took sometime to shake out, as one example. Then toss in the ISL Wrist Pin concerns on several units of the 2006 era. Then their were the post recession lost of National, Western RV, Country Coach, later Monaco - that did not survive the recession. And this resulted in a lower volume of new higher up the food chain coaches for sale, and thus lower volumes entering the use market. All of these factors, added a perfect financial demand storm, for older higher quality coaches - and thus the slight actual increase in values for a few years.
Now a days? Well, many more newer 3-7 year old DP's are in the market place, but at the same time, we've had a stronger demand via more baby boomers, and younger groups too, moving into RV'ing. So supply vs demand of used coaches, probably were about the same over say the last 3-5 years(?). (No facts from any research on this, but my perspective via the number of posts about people looking for higher quality used coaches on many boards, and having to be ready to jump quick, when a good one comes onto the market fairly priced.).
One other trend that we're seeing, is a higher demand for shorter higher quality DP's. You can see that their prices, even going back as agent as early 2000's years, have increased for 32-36' range DP's. Probably not the norm, but they have, I believe, outpaced say 40-45' coaches in price point. Sure CC is in this mix, but other manufacturers too. I know of two people in the last year, that finally found under 36' Country Coaches, that moved up out of a middle of the road quality DP. (One came out of a 36' Journey. The other came out of a Roseair from Rexhall.) My neighbor and friend in San Diego area has a 34' Alpine, and I know their prices have gone up too - from higher demand on under 36' coaches.
So larger CC coaches increase in value? Maybe the later years of CC's are holding their values better, due to supply and demand. But I suspect 2004/5 and below (Just a mid point of years that I plucked from the air.), are perhaps also holding value better, but I don't see them appreciating at this time(?). Same thing for the lists of models above, and others too. Higher end coaches, with superior chassis build and larger blocked engines - do provide a great foundation to upgrade and mod to a new owner's desires. And at a sub $200K buy in point, and say ~$40-50K of remodeling inside - you have a better quality and longer lasting coach then buying a new, or 3-5 year old mid quality level DP for the same price point. And many posts I've seen, people were buying these higher quality good foundation units - because they also know the depreciation curve ahead is much lower then a 3-5 year old coach would be. And most also realize, that in say another 5-10 years - those older higher quality coaches will still be better coaches, then a lesser quality entry or mid level quality coach will be...
I'll toss in one more observation. As interest rates to up, and they will continue to creep upwards for the next 3-5 years at least... That will put some dampening on ease of using other peoples money to make purchases. And for our older CC's, many are hard to get financing for after 10 years of age, or at least at competitive interest rates. So that will have some dampening on demand over the next few years too, as buyer's will not be able to afford... (Even Home Equity Loans, will have rate increases, same effect on the easy cash for purchase...)
Rambled a lot hear, my nature:)! But that is how I see things. Increase demand for smaller older higher quality DP's will keep their prices strong. 40-45' rigs in the older ranges should sort of hold their own in price in slower depreciation. Entry to Mid quality older coaches, I believe will see an increase in depreciation ahead... And with so many manufacture's gearing up to provide new coaches, some higher end too, many who can financially afford to due so (And their always seems to be such a group.) will keep that demand strong. I especially feel the $750K - 1M price point, will have ongoing demand. (Many can afford the $1.5-2.5M and above super coaches. But elect to also go look at say a Foretravel Realm, or Entegra Cornerstone, Newmar Lodon/King Aire/Essex - and say that at under a million out the door - those are more the sufficient for them:)!).
Time will tell on if any of my ramblings are accurate:)! And I'm OK either way. We like, and continue to modify our current coach. Would I like say the Realm? Sure, but even used ones at $500K price points - just don't seem to grab me enough to say 'Come buy me!'. Our little old mid sized block engine Allure - is treating us fine....
Best to all,
Smitty
04 Allure 31017
Topic: Could our coaches increase in value? (Read 977 times)
previous topic - next topic
Country Coach Motorcoach Forum