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I am talking about the rzr market specifically and the consumer market economy generally. The rise of the rzr and performance utvs over the last 12 years has been quite amazing. A recreation and enthusiast lifestyle has been created. The financial growth overall has been as impressive as the growth in what people are willing to invest in a single machine.

As I see people invest 10, 20 or even 30k or more in single utvs, I question the future of the market when the economy turns. We are not talking about a truck or something that can be used to support work or even be used to commute to work. We are talking about a pure toy. As the performance utv market has heated up, they have never been means tested with a tight economy where people’s priorities shift to the essentials.

This is not totally new as sports cars, boats and motorcycles are toys that have gone through tight economies. However at least with sports cars and motorcycles you could get to work as needed. As far as boats are concerned, they have always been a great place to light money on fire.

Interested to hear peoples thoughts, however leave your politics aside. The next recession is coming, we just don’t know how bad or how long. How durable do you think the utv market is? In five years will we see lots of people upside down with thousands tied up in utvs they can’t sell because no one has the disposable income to buy? Or has a lifestyle been created that we are all willing to invest in?
 

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That is a tough one. In my 30 plus years in the workforce I've had ups and downs due to the economy. I had to endure several layoffs in that timeframe, one that lasted a year.
All through those I still snowmobiled and rode a sport quad. In the earlier years , I was still able to boat. The last layoff, the year long one did effect me. I saw it coming and was able to sell the boat. Funny thing is, I had just bought an '08 RZR 800, kept that for 8 years. That was then, this is now. And now we have people that have double what that 800 cost in just accessories. I think the people that go out and buy a new one every other year, and credit card all the add on's will be hurting for sure.
 

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Nothing that you buy that depreciates and generates no return is an investment. It’s a liability. You accept that liability in exchange for the reward.

That said, the sport UTV market was basically created and grew exponentially smack in the middle of the last recession. Started with the Rhino in ‘04, then the RZR in ‘08, and grew like crazy from there. I think it was just an untapped market waiting to be developed. A guy like me who was into Jeeps, into quads, and found the UTV offered the best of both worlds for a price somewhere in the middle.

Personally, I won’t be dropping 30k on a UTV, but I don’t begrudge some one who does. There are others that think I’m nuts for spending 15k on mine. It’s all relative.

Not to say that it’s a good thing, but you can finance anything these days and the terms are getting ever longer. As long as people can scratch up a little extra cash and get an affordable payment on a toy, they will buy them.
 

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I guess I never think of toys as investments. My toys are in the same category for me as vacations. Its the price to play. I have $30k easy in my RZR and I have fun with it. I know that I will never see $30k again. its worth what ever the market will pay at the time. Not something I worry about. If I spend $3k on a trip to Hawaii its money spent on the fun. Its gone baby and it ain't coming back.
 

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I would have to compare this to the wakeboat market in general. That market bottom hasn't fallen out and the boats keep getting 5% more expensive every year (think prices north of 185k MSRP). The thing about that market is that the used market is propped up by the inflation. Not sure the SXS shares that same model as the used market seems more accessible to more people and the prices are lower. I think as far as prices go you'd be surprised what the market can bare. 40K isn't out of the realm of possibility.
 

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I look at it a different way. For years when my parents had a lake house we had boats and Sea-Doo's. Dad had his Ranger and I had several different versions of fun boats, the last one being a deck boat. They sold the house in 2014 and the wife and I took a lot of weekend trips for something to do. Those started adding up, but on one of those weekends to Pigeon Forge, we went on a guided ride. Wife loved it more than I expected, so in spring of 2015 we bought a used Commander.

I grew up riding dirt bikes, so I was all in for this. It seemed like we were riding every weekend and soon we realized that we were spending less riding (I am luck to live within 1.5 - 2 hours from any HM trailhead) every weekend than we were going away once a month.

Then we rented a 4-seat RZR out in AZ and it rode so much better than the Commander. Got home and was going to get and an XPT4, but took the wife to go get one and she liked the General 4. So I ended up with an "S4" instead of an XPT4, but I am happy with it.

And the cost of boats has gotten way out of hand. Last boat I bought was a 24' Hurricane Deck Boat and couldn't believe I was going to pay $40K for it. Now that boat would be close to $100K which makes the General 4 seem cheap.
 

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These are not investments but rather toys that are paid for with disposable income. I could never justify pending the $$ I do on these things if I had to finance them. I always pay cash for toys because my motto is if I have to finance it I can't afford it. Over the last 10-12 years a billion dollar industry has sprung up around the SXS markeet. The companies who have their business based solely around this source of disposable income will be the ones to suffer in a down turn. The major companies will take minor hits because they are diversified but it's the small proprietors that will go under.
 

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Cash is KING !
Stuff gets cheap when economy tanks.

He who takes care of their own economy prospers.
Why at times I like recessions...I take advantage...less people out there riding also.
 

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I agree these are toys not investments. Normally I would say pay cash for your toys, don’t go into debt. That is not what I did this time. I can get the cash from my investments and CD’s but the 2.9% interest rate Polaris offered is lower than my return on any of my investments. It was a no brainer, I used their money.
 

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Not worried about it. Like many here, cash rules, I don't finance fun.

I was stunned to learn so many people finance their UTVs with 10 yr loans. Those people will be hurting in any downturn. I have neighbors here in So UT that are so in debt with their home and toys I wonder how they sleep at night.
 

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Discussion Starter #12
Cash is KING !
Stuff gets cheap when economy tanks.

He who takes care of their own economy prospers.
Why at times I like recessions...I take advantage...less people out there riding also.
True, have to play the market. In 2010 I bought a used c6 and drove it for 10k miles. Then sold it in 2014 for 3k more. The first owner took a bath on it selling it for 1/2 of List. However I feel like most people that can finance a 56k dollar sports car can take the hit on depreciation.

I question how many utv buyers can afford a new xpt or better cash. What is the percentage of new utvs being financed out 72 months or more?
 

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Not worried about it. Like many here, cash rules, I don't finance fun.

I was stunned to learn so many people finance their UTVs with 10 yr loans. Those people will be hurting in any downturn. I have neighbors here in So UT that are so in debt with their home and toys I wonder how they sleep at night.
10 years? You would be upside down in that thing until maybe year 9. No thanks.

Dealer pushed hard for me to finance and wasn't happy I said No.
 

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I remember that when the crunch came in 08/09 Polaris jumped up and offered $99.00 month and only $99.00 down.
The turn out was HUGE for Polaris -sold mega inventory and only 7 years later your toy was paid off!!!!!!!!!!!!!!!!!:surprise

Some can't see the forest for the trees- but the markets survive.
It is a shame as it seems like the younger crowd always get caught up in the Gimmick's.
If you can't pay for it in cash- you can't afford it has always been brought to my son's... same as going on a vacation/ keep it off the credit cards unless you can pay for it 100% when the bill comes...
 

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Ehh I dont mind financing for a year or two if its 0%. However, I dont know many who can afford say a turbo 4s in cash though.
 

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These machines are super expensive but if u want one bad enough an can afford the payment then why not. Sure your upside down on it as soon as the trailer pulls out of the dealership and you will never get your money back, not to mention the thousands you’ll spend on goodies. So it had better make you smile every time you see it. If the bottom falls out of the economy then your screwed lol life’s a gamble. Just enjoy it while you can.. RZR ON!!
 

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If you finance or pay cash the machine is worth exactly the same. You might have spent a few hundred more on the interest but in the big picture it’less than a set of good wheels and tires. If it’s putting you in a bind hike instead. If not gas up and Ride!!
 

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Well, it can probably go something like this.
The people that have been wise with their money can stand by the front door of the banks and offer pennies on the dollar for toys that have been financed. Then take said toys home and store them until the economy turns. At that point, they can then sell the said toys for dollars to the next generation of buyers that aren’t spending their money wisely!!!!

Back in the mid 1980’s when the world wide oil industry pretty much tanked, there were a lot of old beater cars running around with a bumper sticker that read something like..........
“Please God, let there be another oil boom; I promise I won’t pizz it all away next time!”
Then the boom hit in the mid 2000’s again and guess what happened!!
YUP! Deja vu all over again!
 

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I don't think buying the RZR itself is what puts people in a bind, but rather their lack of control with accessories and upgrades (and money in general). I can't tell you how many local RZRs I've seen for sale something like this...

2018 RZR for sale, over $7000 in accessories, 218 miles....
 

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I bought my 2013 RZR 800LE used and sold it for more than I paid.

My 2017 1000s with 2500 miles I broke even minus the cost of wheels and tires.

RZRs hold their value in Colorado in the used market. I wouldn't call any of it an investment, I go into knowing it will "likely" sell for far less than I paid.

With that said I wouldn't finance a RZR. I am currently looking at either a Toy Hauler or Class C RV and I was surprised to find 120, 144 and 180 months financing is "normal". Now to compare those two sectors, the Toy Hauler Trailer holds it's value far better than the Class C RV. At least it seems that way, but either way it's a liability for the reward.
 
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