no market correction

I have concerns about the economy the next few years as many others have mentioned. There’s also no doubt that many people have over extended their finances through endless payments (just look at the statistics on how many Americans can cover a $1000 emergency and you will see the bleak picture pretty quickly).

Related to boat/motorcycle/snowmobile market I think a key driver of the inflated used prices is the inflated new prices. I could sell the used snowmobile I bought 5 years ago for the same price today which is crazy because the value of a sled usually drops like a rock as you put miles on them. Using rough estimates, you could buy a new sled for $8-9K say 6 years ago. Now they are $14K. When prices inflate so quickly the used market tends to follow as a percentage of the new prices.

mnfisherman18 wrote:

There’s also no doubt that many people have over extended their finances through endless payments (just look at the statistics on how many Americans can cover a $1000 emergency and you will see the bleak picture pretty quickly).

Related to boat/motorcycle/snowmobile market I think a key driver of the inflated used prices is the inflated new prices.

Totally agree. Manufacturers and dealers have been highly successful in getting financing rec toys to become the norm in the minds of buyers. People no longer see the real total cost, they just look at “Can I make the monthly payment?” If yes, they buy.

I doubt the vast majority of buyers of financed boats and other rec toys EVER total up their total cost including interest.

I don’t think a sudden 2008 style crash is coming with rec toys. The buyer realization that the payments are killing them will happen slowly over a period of time, not at a market flooding pace unless jobs take a significant downturn.

Grouse

I was just thinking of this the other day. Back in March, when all of this started happening, I posted a thread here about wondering how long it will be before people start dumping their toys. And look at where we are. Throngs of people have BOUGHT toys, cars, trucks, everything. There are no bargains to be had anywhere and in most cases, the prices are actually higher.

The Fed has already said they are committed to keep rates low for years. So the can will be kicked down the road. It’s actually hard to imagine a scenario where the fed will ever let the country have another crash.

I do think that the slightly used RV market will be big in a year or two. So many people bought them who had never even camped before. It won’t stick.

I don’t see a big glut of boats flooding the market anytime soon simple because there aren’t nearly as many made as RVs. And boats are easier to keep at your house, etc.

Let the states pay the workers they know are out of work. But that just makes too much sense.

That depends on whether you view it as something intended to stimulate the economy through spending, or as a kind of welfare for people in need.
Those in better financial situations are more likely to spend in on new purchases. A dollar spent paying off an overdue cellphone bill is spent once; a dollar spent buying a new hammer from the local hardware store is spent at least 6 times within your own community.