The powersports industry, which includes motorcycles, all-terrain vehicles (ATV), utility-terrain vehicles (UTVs), snowmobiles, and personal watercraft, is robust and continues to grow according to dealer performance data from Commercial Distribution Finance (CDF), a division of GE Capital.
CDF dealer financing volume is up 12% through June, indicating dealers are ordering more product to meet increasing consumer demand. Dealer inventory turnover is running at a strong annual rate of over 2X, and aged inventory over 18 months old, is also healthy at under 6% of total portfolio.
“Industry growth is coming from a steadily improving economy and from innovative product offerings from our manufacturing partners, attracting new riders,” said Jeremy Jansen, president of CDF’s motorsports group. “Also, dealers are doing a great job of balancing the right amount of inventory for the increase in demand.”
Jansen was named president of CDF motorsports in May and has been with GE Capital since 1999.
CDF dealers are able to obtain information on their inventory and how they are faring against their peers through Dealer Insights, an online portal designed to give motorsports dealers relevant information on inventory, demographics and financing to help guide business decisions.
“We are continually investing in our Dealer Insights portal to provide the dealers with information to help them grow their business,” said Jansen. “This latest offering, an interactive marketing map allows dealers to identify key local geographies where highest growth rates are expected, allowing for very targeted marketing or advertising campaigns.”
Commercial Distribution Finance (CDF) provided $46 billion in financing for more than 40,000 dealers and more than 2,000 distributors and manufacturers globally in 2014. CDF operates in 60 countries and provides inventory financing solutions, service and intelligence through in-depth industry expertise and commitment. Programs include inventory and accounts receivable financing, asset-based lending, private label financing, collateral management, and related financial products.