A majority of consumers in the powersports segment said they would not have made the purchase or would have gone to another retailer if financing were not available, according to a study by Synchrony Financial, a consumer financial services company.
The highest rated reasons consumers chose for getting financing at the point of purchase included, “to know their monthly payment for budgeting purposes,” at 82% of respondents, and, “helps make large purchases more affordable,” at 76%.
The Synchrony Financial 2014 Powersports Path to Purchase Consumer Study surveyed 418 consumers ages 21 and over, who made a $500-plus purchase in the six-month survey period. Key results of the study were released exclusively to Auto Finance News.
The study found that trust and quality outweigh product value in purchase decisions of the powersports segment. The survey said 59% of those surveyed responded, “they are willing to pay a premium for best brands.” But the search for those premium brands takes time. Consumers spend on average 123 days from consideration to purchase of their powersports product, the survey said.
In this segment, most of the financing and purchasing decisions, the study shows, are made in-store. The survey said 86% of respondents conduct their research online, and 80% of them complete the purchase in-store. According to the survey, 55% of those surveyed used a mobile device for their pre-purchase research.
In March, Synchrony Financial extended its partnership with Yamaha Motor Corp. to offer consumers promotional financing for the purchase of motorsports, watercraft, and marine products. In February, the company partnered with Kymco, which distributes scooters, ATVs, and side-by-sides through more than 600 dealer locations across the U.S.