Inventory financing up in Q1, GE Capital says
Inventory financing among dealers during the first quarter of 2013 increased over the same time period in 2012, and floorplan receivables were also up over the prior year, according to GE Capital’s Commercial Distribution Finance division.
“Increased inventory levels speak to dealer confidence in stocking more inventory and the OEMs producing larger quantities,” GE Capital vice president of marketing Sam Yourd said.
Yourd also noted in an interview with Powersports Business that inventory turns in the first quarter of 2013 decreased compared to Q1 2012.
“Inventory levels in first quarter 2012 were lower and we saw higher liquidation percentages in first quarter 2012,” Yourd said. “The weather has probably had some impact on dampening the turn data in the first quarter of 2013. While positive for the snow segment, we saw a decrease in sales of motorcycles, ATVs, UTVs and PWCs.”
With that in mind, offering an array of product as the Q2 sales season gets underway is important.
“Having the right inventory mix is crucial so dealers can represent the full line of products the consumer demands,” he said. “Inventory financing allows dealers to stock the full line without being constrained by a lack of working capital. Choosing the right balance between brands and models can be a challenging exercise; however, if financing is not a limiting factor, the focus can be applied to the decisions that matter the most — the products.”