GE Capital’s Equipment Finance business has entered into an agreement to provide financing for GEM’s commercial purchases. GE Capital already provides financing for other product lines sold by Polaris. The agreement with GEM is for three years. The majority of sales for the GEM product line are for commercial customers such as municipalities, universities and resorts. According to GEM management adding a leasing option is an important option for their commercial base. Learn more: Marketwatch.com
Comment: Although LSVs/NEVs were originally targeted towards the consumer market, the majority of GEM’s sales through the years have been to commercial customers. SVR predicts this segment will continue to be a strong growth area for LSVs. Historically commercial customers have been more likely to look for leasing options than private customers in the STOV market. For some commercial purchasers they can more easily lease vehicles using funds from their operating budgets than purchase them from a capital budget.