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.
“The decision is another in a string of developments – diminishing home values, higher gas prices, weaker consumer confidence – that has 2008 on pace to be the worst year since 1992” for RV and boat makers, Robert W. Baird analyst Craig Kennison wrote in a note to clients.
With the California RV and motor home market looking so bleak, dealing with a problem motor home or RV can be especially frustrating. Once you have decided to invest in a motor home you should be spending your time on the open highway, not in repair shops. Under the California Lemon Law, consumers who have serious problems with their motor home or RV that cannot be repaired may be entitled to their money back or a replacement unit.
If you feel that your defective motor home may in fact be a lemon, it’s important for you to contact an experienced lemon law lawyer who will help determine whether your motor home or RV is in fact a lemon and can help you with documentation and investigation of your case. The Law Offices of Howard D. Silver is committed to justice for those who have bought a lemon motor home or RV. Think you've bought a lemon? Call Howard D. Silver today and make lemonade. A telephone consultation is free and completely confidential.