Motorsports Market Is Healthy and Growing, Says GE Capital
CHICAGO, Ill.--(BUSINESS WIRE)--The motorsports industry, which includes motorcycles, all-terrain vehicles (ATV), utility-terrain vehicles (UTVs), snowmobiles, and personal watercraft, is healthy and growing, according to performance data from GE Capital, Commercial Distribution Finance (CDF), a leading provider of financing to motorsports dealers. Dealer financing volume is up almost 13% through June, reflecting healthy, more confident dealers, and steady improvement in the overall economy.
“We have responded through investing in our online system making it easy for dealers to establish a separate line of credit for these products.”
“Dealer performance is a good barometer for the overall health of the motorsports industry,” said Sameer Gaur, president of CDF’s motorsports group. “We are seeing dealers selling through their inventory and increasing their orders. We expect this to continue throughout the remainder of the year.”
CDF data is showing dealer inventory turnover running at a strong annual rate of over 2X, and aging rates, reflecting inventory over 18 months old, also healthy at under 6%. Contributing factors to the strong selling performance include an uptick in snowmobile sales early in the year, followed by a ramp up of motorcycle and other power segment sales in the spring. Additionally, new models in all segments across multiple price points have helped to spur sales.
“Manufacturers have invested in research and development to give consumers more product choices, which is evident on showroom floors,” said Gaur. “With innovation around both the value and high-end segments, the industry can expect to grow with new and existing customers.”
Pre-owned vehicle sales are also strong. CDF is reporting a 12% rise in pre-owned volume in the first half of the year compared to the prior year. “Pre-owned continues to be a great revenue generator for dealers,” noted Gaur. “We have responded through investing in our online system making it easy for dealers to establish a separate line of credit for these products.”
For more than 35 years and through all business and economic cycles, CDF has supported the motorsports industry. Inventory financing, also known as floorplan financing, is an important element of a successful manufacturer-lender-dealer business model. In addition to financing, CDF offers customers a robust array of detailed performance metrics and real-time statistics, as well as its Customer Online Management System (COMS), which provides streamlined account management.
About GE Capital, Commercial Distribution Finance
GE Capital, Commercial Distribution Finance provided $34 billion in financing for more than 30,000 dealers and more than 3,000 distributors and manufacturers in the U.S. and Canada in 2013. Programs include inventory and accounts receivable financing, asset-based lending, private label financing, collateral management and related financial products. For more information, visit http://www.gecdf.com/ or follow company news via Twitter (http://twitter.com/GEInventoryFin).
GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit www.gecapital.com or follow company news via Twitter (http://twitter.com/GECapital).
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