Recreational Vehicle Fleet Valuation and TDD ​

Brief

When a global operator of recreational vehicles (RVs) sought to expand its fleet and secure multi-year financing, it turned to Hickman Shearer Ltd for expert guidance. The client needed a clear, independent understanding of the value of its assets to support a lending facility designed to fund both expansion and fleet replacement. Beyond simply determining financial worth, the lender required assurance that the fleet was in robust operational condition, highlighting the importance of Technical Due Diligence.

Hickman Shearer was engaged to deliver a dual-focused assessment: a professional valuation of the client’s RV fleet and a detailed TDD report. The objective was to provide the lender with the confidence to make informed decisions while helping the client unlock the full potential of its assets.

Work

The project required a meticulous, structured approach, combining market insight, technical expertise, and professional valuation standards. Hickman Shearer’s work was broken into two complementary streams: Technical Due Diligence and Capital Asset Valuation.

1. Technical Due Diligence (TDD)
   The fleet under review comprised Class B and Class C motorhomes, sourced from tier-one OEMs. Our TDD team conducted on-site inspections, reviewing a representative sample of vehicles to evaluate condition, maintenance history, and compliance with operational standards.

   Key elements of the TDD included:

   • Condition Assessment: Vehicles were inspected for wear, functionality, and adherence to manufacturer specifications.

   • Operational Risk Review: Maintenance records and service histories were analysed to identify potential risk factors that could impact asset longevity or residual value.

   • Mitigation Recommendations: Where minor risks were identified, we provided practical guidance to the client and lender on steps to preserve fleet value and reduce potential exposure.

   This technical evaluation offered the lender visibility beyond the numbers, ensuring that financial assessments were underpinned by a clear understanding of asset quality and operational reliability.

2. Capital Asset Valuation
   Alongside the TDD, Hickman Shearer applied a rigorous valuation methodology, aligned with RICS and IVS standards, to determine the fleet’s market value. Our approach combined:

   • Market Approach: Analysing current market transactions and trends to identify comparable assets and establish realistic valuations.

   • Cost Approach: Estimating replacement costs while accounting for depreciation and lifecycle factors, providing a robust cross-check against market-derived values.

   Our market analysis highlighted strong post-COVID demand across Europe, with new motorhome registrations rising 9.6% in 2024. This insight ensured that valuations reflected both current market dynamics and future potential, giving the lender confidence in the financial strength of the collateral.

Outcome

The combined TDD and capital asset valuation delivered a comprehensive picture of the fleet, enabling the lender to make an informed financing decision. For the client, the process unlocked tangible potential, providing clarity on the value of its assets and the operational robustness of its fleet.

Hickman Shearer’s independent, expert assessment went beyond numbers. By combining market intelligence, technical scrutiny, and professional valuation standards, we empowered the client to pursue expansion and fleet replacement with confidence. This case exemplifies how we help organisations unlock the hidden potential within their assets, transforming operational insights and financial analysis into actionable strategies that support growth and investment.

Whether assessing a fleet, evaluating capital assets, or conducting complex technical due diligence, we deliver clarity, confidence, and the actionable intelligence organisations need to unlock potential and achieve their strategic goals.

About Hickman Shearer

At Hickman Shearer, we specialise in delivering exceptional RICS and ASA certified capital asset valuation, management, and sales services. Our expertise span a wide range of global industries, ensuring that we provide tailored and insightful commercial valuations and equipment valuation services to meet your unique needs. With a strong track record of delivering robust and independent advice, we are committed to supporting businesses in achieving their strategic objectives. Find out more here >> About Us

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