GE Capital: Motorsports Dealers Positive; Retail Finance is Challenging
The motorsports industry is positive about sales trends and excited about new product introductions, according to a survey conducted by GE Capital, Commercial Distribution Finance (CDF). Individuals cited retail financing as the biggest challenge.
Thirty-seven percent of respondents anticipate sales growth of 5-10 percent, and 23 percent said 10-15 percent. The most important trend in the motorsports industry today is the introduction of new products, according to 40 percent of respondents. Parts, garments and accessories were cited by 22 percent, and the growth of the pre-owned market by 16 percent.
When asked about the industry’s greatest challenge, respondents cited the availability of retail financing (41 percent) and consumer spending (30 percent).
Inventory financing, also known as floorplan financing, is an important element of a successful manufacturer-lender-dealer business model. Manufacturers can focus on their core product development and production capabilities while dealers can focus on delivering products and services to consumers without having to worry about financing the inventory acquisition.
GE Capital’s survey was conducted Oct. 16-17, 2013. A full 75 percent of respondents were dealers or retailers; the remainder were manufacturers, distributors and others.