GE To Stop Financing Motor Home Purchases
General Electric Co. announced Monday, May 5th that it will stop offering loans for the purchase of boats and motor homes. The move is linked to a downward trend in the economy that began with diminishing home values, higher gas prices, and an overall lack of consumer confidence in the economy.
The lender, which currently has a $3.6-billion dollar loan portfolio, told boat and RV dealers that it would cease taking applications by July and underwriting new loans on August 1st.
“We just really looked at a lot of different alternatives and are facing a challenging environment and ultimately came to the decision that we needed to invest our resources and capital in areas where we could see good return,” Williams said.
The decision is a blow to the already hard hit recreational products sector. Makers of boats and motor homes have had a rough year as rising gas prices, a tough housing market and fears of a U.S. recession caused many consumers to scrap plans to buy big-ticket recreational items.
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