Issue link: https://read.dmtmag.com/i/536070
FOCUS PSB UTV — Sport 26 • July 13, 2015 • Powersports Business www.PowersportsBusiness.com the amount financed has climbed by 3 percent. Lenders are accepting a lower down payment on these loans. At this same time, customer monthly payments have lowered. This has been accomplished by an increase in the term of the average contract. The aggregate effect of these three changes (less down, lower payment, longer term) would be a broader approval range for buyers and more interest income for lenders. Sport (31,900 units) These units have grown in price by 34 percent since 2011. The amount financed has stayed close to 100 percent of purchase, and the higher product cost has been paid for by an increase in both the monthly payment and the term. Cus- tomers are obviously willing to pay more and pay longer for this class of UTV. Work (4,700 units) Work units have increased in price as acces- sories continue to be added to the market by vendors. Payment for this increase in value has come not from an increase in the amount down, but rather by increases in both the pay- ment amount and the term of the contract. In 2012, a credit buyer was willing to pay $199 per month for 56 months, which is $11,144 for $9,490 in product. The customer's total outlay is 117 percent of product cost. In 2015, the credit buyer was paying $227 per month for 58 months, which is $13,166 for $10,560 in prod- uct. The customer's total outlay is 124 percent of product cost. PSB !"#$%&!' $9,230 $9,120 $9,380 $10,080 $10,560 $9,280 $9,490 $9,570 $10,210 $10,790 $185 $190 $195 $200 $205 $210 $215 $220 $225 $230 $8,000 $8,500 $9,000 $9,500 $10,000 $10,500 $11,000 2011 2012 2013 2014 2015 Payment Amount (Unit + Accy) v. Amt Financed Unit + Accy Avg Amt Financed Avg Monthly Pymt !"#$%&!' $209 $199 $204 $216 $227 55 56 57 58 58 53.5 54 54.5 55 55.5 56 56.5 57 57.5 58 58.5 $185 $190 $195 $200 $205 $210 $215 $220 $225 $230 2011 2012 2013 2014 2015 Avg Monthly Payment Avg Monthly Pymt Avg Term in Months Term in Months WORK UTV | 4,700 NEW UNITS SOLD 2012-15 WITH FINANCING TOTAL OF UNIT + ACCESSORIES V. AMOUNT FINANCED WORK UTV | 4,700 NEW UNITS SOLD 2012-15 WITH FINANCING AVERAGE MONTHLY PAYMENT AND AVERAGE TERM (IN MONTHS) CDK GLOBAL CONTINUED FROM PAGE 20 Source: CDK Global Recreation Chart C1 Chart C2