GE Capital: Motorsports Market Healthy
The motorsports industry, which includes motorcycles, all-terrain vehicles, utility-terrain vehicles, snowmobiles and personal watercraft, is healthy and growing, according to performance data from GE Capital, Commercial Distribution Finance. Dealer financing volume is up almost 13% through June, reflecting healthy, more confident dealers, and steady improvement in the overall economy.
“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.”