RV loan portfolios remained profitable for lenders involved in the industry and lenders are looking to increase or maintain their participation in RV lending, according the recently released Recreation Vehicle Industry Association (RVIA) Survey of Lender’s Experiences.
The 24th annual survey was prepared for the RVIA Financial Services Committee, according to Bob Parish, chairman of the committee and vice president of G.E. Commercial Distribution Finance.
The survey data was gathered from retail indirect lenders and wholesale lenders, which comprise around 80% of all national program lenders involved with the RV industry.
Here are some survey highlights:
* The dollar volume of RV wholesale loans made during 2003 was $6.66 billion and dollars outstanding as of Dec. 31 amounted to $2.88 billion.
* The used portion of the average wholesale portfolio is 7.7%, the rental portion is 1.9% and almost 96% is covered by a manufacturer repurchase agreement.
* Inventory aged beyond 365 days accounted for 7.1% of floorplanned inventory, the net dollar charge-off as a percentage of average net receivables is 0.51% and the average of nonperforming assets to average net receivables is 0.04%.
* For the floorplan lenders who also do RV retail financing, 25% pay off the floorplan obligation before funding the contract with the dealer, and 33% received floorplan payments directly from outside retail sources.
* The number of retail indirect loans made in 2003 by large lenders responding to the survey was 149,575 and the total dollars funded was $6.33 billion.
* The number of retail indirect installment accounts outstanding in 2003 was 455,189 and the total outstanding dollar amount was $15.36 billion.
* The average downpayment was 16%, and 63% of the loans were made for purchases of new units. Used-unit purchases accounted for the other 37%. The average age of used units financed was 3.6 years.
* The average time for loans on the books for towables was 37 months, and for motorized, 40 months. The median payoff amount for towables was $14,600, for motorized, $50,000.
* The delinquency rate for retail indirect RV loan portfolios, new and used combined, was 1.15% last year. Repossessions were initiated after an average of 73 days delinquency and the average percentage of dollars recovered when selling a repossessed unit was 51%. The percentage of repossessed units marketed primarily through RV-specific auctions was 88%, through auto auctions, 75%, consignment 75%, private sales, 29%. sealed bids 29%, and classified ads, 14%.