GE Money opts out of consumer boat, RV loans

Author:
Updated:
Original:

GE Money’s sales finance unit is discontinuing its consumer finance programs in the marine and RV markets.

“This was an extremely difficult decision for GE Money, but one that we believe is the right operational adjustment for this environment,” the company said in a statement.

“GE Money seeks to invest in markets where it can provide a unique and competitive value to partners and where it will have the strongest long-term growth,” according to the company. “Based on the current economic environment, GE Money has been challenged to continue to deliver a strong level of return in the marine space.”

This change relates only to GE Money and its consumer lending agreements. An acceptance and funding schedule for consumer credit applications from non-OEM and OEM partners has been outlined through July 2008, according to GE Money.

Edward Aaron, an analyst with RBC Capital Markets, said GE’s exit “appears to be part of a broader effort by GE to selectively reduce its exposure to consumer finance.”

The move, he said, should not substantially affect the lending environment because there’s still enough lending capacity to absorb GE’s volume.

“That said, this news is clearly a sign of the times and yet another data point supporting our stance that credit availability is a growing risk,” he said in his report.

Aaron noted the move has a direct impact on two RV manufacturers since Thor Industries and Monaco Coach have partnerships with GE.

GE Money will continue to finance some marine products as part of its Powersports portfolio, including Yamaha Sportboat and loose engines, BRP Sportboats and Johnson/Evinrude loose engines. GE Money programs in Powersports, Trailer and Outdoor Power Equipment remain unchanged.

GE Capital Solutions, Commercial Distribution Finance continues to be a provider of specialized business finance solutions to marine manufacturers and dealers.

“In general, we believe lenders are continuing to tighten their standards,” Aaron wrote. “Approval rates are declining and lenders are becoming more strict on advances.”

This article originally appeared in the June 2008 issue.

Related

Wholesale Shipments Drop in September

NMMA: Easing supply chain constraints should enable more manufacturers to build boats.

Dealers: What’s Your 2021 Retail Outlook?

The monthly Pulse Report asks marine retailers to weigh in on November market conditions.

2020 On Track for More Than 300,000 Boat Registrations

It’s the highest number since 2007, when there were almost 400,000 boats registered for the year.

A United Industry Voice Impacts Summer Sales

The comprehensive collective effort of the Get on Board campaign was a key factor in generating boatloads of new customers.

Boating Writer Scholarship Now Open

The BWI Active Interest Media Boating Journalist Scholarship is now accepting applications through January 15. College students are encouraged to apply for the $3,000 scholarship.

Quick Hits: November 24, 2020

Bluewater Yacht Sales expands; ICOMIA issues yacht coatings guide; and Elcome expands forecasting services.

Iris Innovations Launches Garmin OneHelm Compatible Camera and Alarm Management System

The UK-based company’s new products allow users to manage all onboard cameras and alarms via Garmin MFDs.