Following six straight months of growth in 2020 – a year which saw the inspection requests received by Verimoto swell 161% from 2019 – the second-hand asset market is now on the decline, having posted negative growth of -3% in December and -13% in January.
However, according to Verimoto CEO Peter Hewett, it is not unusual for activity to slump over the holiday period; in fact, the group’s preliminary second-hand asset inspection figures indicate further growth in the sector is imminent.
In his market update, Hewett highlighted Australians’ continued investment in their own travelling holiday homes and toys such as caravans, campervans and boats – a trend first predicted months ago, in light of the prolonged closure of the nation's international borders.
Caravans and campervans saw a seasonal decline following the holiday period, but boats have continued to boom. Growing since October, inspection requests have peaked in January, with inspections increasing by 15% month-on-month.
According to Tourism Research Australia, caravan and camping travel accounted for 44% of all holidaying across the country for the September 2020 quarter, proving its crucial importance to domestic tourism and the economic recovery of regional Australia.
This, combined with the trend of more people moving to regional areas given the flexible work environment created by the pandemic, means brokers must consider how they can conduct cost-effective inspections at a distance, as Hewett sees it.
“For brokers, it’s important to have cost effective means to serve regional customers in financing second-hand vehicles. Often it can take weeks to conduct inspections in regional areas, with costs also increasing depending on the distance from regional centres. Brokers should look to technology to help bridge this gap, using virtual tools to provide faster financing,” he said.
