CHICAGO – Recreational boat recovery and remarketing activity appears to be cooling off after being steady or growing since 2007, according to an unscientific study by the Marketing Committee of the National Marine Bankers Association.
According to the study, the recovery business appears to have peaked in 2009 while remarketing firms had two higher activity years in 2008 and 2010.
“For the remarketers, the up years may reflect an initial influx of boats taken back from consumers and a later wave of few (though dated) boats coming from dealer or manufacturer inventory,” the NMBA said.
Survey respondents suggested that with production of new boats now increasing, demand for and values of used boats will decrease slightly. They anticipate repossessions dropping as banks finish cleaning their portfolios and as the industry’s boat inventory overhang has largely been eliminated. Recovery respondents expected the number of bank clients served to remain the same while anticipating a decline in orders from the banks.
In terms of recovered boats, the 26’ to 40’ class sees most activity, followed by the less than 26’ group and then 40’ and above. Remarketers expect demand for all classes to remain growing with the smallest and largest of these segments stronger than the mid-range, the group reported.