used market pricing come back to earth
- Thread starter ArlyA
- Start date
Torvy
Super Member
This is fairly predictable. UTV are more of a 'toy' for more people than a tractor is a 'toy'. Trucks are also more of a 'need' than a UTV. It makes sense than those prices would fall first. Used will also be more reactive, because less is typically needed to break even. Inventory of used UTV are in part due to people realizing they cannot afford in worsening economy, and part due to new inventory catching up and people who bought new being willing to sell their old ones. Basically, poor sellers are getting out from under toy debt and 'rich' sellers are upgrading now that units are available.
There are a lot of factors in play in terms of timing. Demand shot up during the 'demic and supply was down due to, let's call it choices. As we exited the lock downs and such, backed up demand had people clamoring for stuff. OEMs pushed production to meet the higher demand, just as inflation and interest rate hikes began to affect demand downward. Dealerships have more and more expensive inventory and those with the ability to pay are also those more likely to have been able to fill their needs earlier. Soon, dealers will have to tighten profit margins and cut costs (read jobs) to ensure they don't go under due to the huge shift in demand. Some may be able to take a loss on some units, but once a tipping point is reached, get out your popcorn, it will be a heck of a show...like a Greek Tragedy.
There are a lot of factors in play in terms of timing. Demand shot up during the 'demic and supply was down due to, let's call it choices. As we exited the lock downs and such, backed up demand had people clamoring for stuff. OEMs pushed production to meet the higher demand, just as inflation and interest rate hikes began to affect demand downward. Dealerships have more and more expensive inventory and those with the ability to pay are also those more likely to have been able to fill their needs earlier. Soon, dealers will have to tighten profit margins and cut costs (read jobs) to ensure they don't go under due to the huge shift in demand. Some may be able to take a loss on some units, but once a tipping point is reached, get out your popcorn, it will be a heck of a show...like a Greek Tragedy.