Wholesale market question on RXVs

[kgsc]

Living near Ezgo and Club Car I have to say when it is lease renewal time it gets interesting when the carts start rolling in. Neither company has the acreage to hold that many carts so they rent a bunch of land. I went to see David at Revolution at his previous location and one of the overflow lots was down the street. It was full of DS carts as close as you could pack them. I’m guessing there were greater than 5000 carts there and that is just one lot..

[TGJR]

Originally Posted by AZgolfcartguy

I'd have to review my paperwork to be sure of how much I can actually disclose; my guess is that it's proprietary information. What I can say is that it's a fixed pricing matrix with built-in depreciation and that it's below what the independent market will bear if you have the option to sell them back into the market yourself. One of the things I've discovered is that, within a certain window, golf carts simply don't depreciate like cars do. Right now, a 2016 is worth pretty much the same thing as a '14 or an '18, so their buy back model doesn't make a ton of sense.

The used cart market is strange right now. Here in Georgia, fleet TXTs right off the course are going for almost double of what they were a few years ago.

Originally Posted by kgsc

Living near Ezgo and Club Car I have to say when it is lease renewal time it gets interesting when the carts start rolling in. Neither company has the acreage to hold that many carts so they rent a bunch of land. I went to see David at Revolution at his previous location and one of the overflow lots was down the street. It was full of DS carts as close as you could pack them. I’m guessing there were greater than 5000 carts there and that is just one lot..

I used to go by one of the Club Car lots in Evans and it was always amazing to see that many carts parked together in a random fenced-in lot. It will be interesting to see what happens this next year or two when a bunch of fleet carts are turned in.