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RMS is closed and emptied out. A friend says there's a letter on the front door and it says the bank has collected all the motorcycles. Business is closed until next week?

Can anyone verify this? can someone drive by?

bikes are being loaded away..about 5pm today?

if its the case..its really bad to see another shop gone..
 

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I was just over there . G E finance pulled the bikes . But mike says he has the money to pay them but not for a week . Only the bikes are gone it will get worked out . If not it's a very sad day for the motorcycle industry
 

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This happens to me a lot in my profession (I'm a pharmacist). People who can't afford their medication but ask for some advancement of pills until they get the money. I'm a softie, so I always give it out. About 80% of people come back and pay, but 20% never pay up and leave to another pharmacy so they don't have to pay...
 

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I have seen GE pull floorplan financing all across BC.

Bikes, cars, RV's, etc......

GE wide initiative, not necessarily about the strenghts or weakness about the dealership.
 

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more importantly, does this mean cheap repo's somewhere or other GOOB sales???
Usually not, the manufacturers don't want to cut the throats of the surviving shops. Usually I sell it back to the distributor who re-distributes the product to the dealers, or they sometimes package it as a group and offer it to the dealer who put in the highest bid for them.

Aside from that, I'm not commenting on the file.....
 

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This is of zero suprise to me... I had heard about them having issues months ago.

And GE capital doesn't pull their assets if your financing is up to date, period, end of story.
 

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And GE capital doesn't pull their assets if your financing is up to date, period, end of story.
Sure they do. GE Head Office has some losses back east or in the USA on a large amount of RV dealers/bike dealers/whatever. A decision is made to pull the floorplan of all dealers of the same nature because GE has now forecasted heavy losses in that industry. The economy hits the crapper. Dealers are not selling units, so floorplan financing is not getting repaid. GE is making interest off dealers, but needs dealers to repay the floorplan so GE can lend it out again. And again. And again. No RV's/bikes/boats are selling, and GE is running out of capital to re-lend. What do they do? Call the loans in the most risky of industries they are in, in an attempt to rebuild the pot of funds.

Did it work?

December 2009, GE Capital was actually OUT OF MONEY to lend in western Canada. Friends/colleagues working for GE Capital at the time were instructed to call any loans that HO determined had a high probability of losses. They could not lend any new funds to even the most credit worthy business, because they had nothing to lend. Nothing to do with individual business owners, and everything to do with a decision made in the GE tower back east. So yeah, GE can pull the assets.

http://articles.moneycentral.msn.com/Investing/CompanyFocus/how-ge-dug-itself-deep-into-crisis.aspx


There was essentially no floorplan for new/used RV dealers. The industry suffered massively, and at the same time that the rest of the economy in North America was in the crapper. How do you think Warren Buffett + Berkshire Hathaway ended up with Forest River and Coachman, the largest RV manufacturer in North America? Good timing and lots of cash.

Same thing happened with Textron floor plan financing. A smaller player in the industry, far more dominant in boating and bike floor plan. Sell a unit, pay off Textron, Textron readvances the same floorplan $$$ back to you. Repeat. Oh wait: Textron tells you that once you sell the boat, they are not re-advancing? Now what? Squeeze your chartered bank LOC as much as you can? But they are tight too, and only finance 2006 or newer inventory... So the 2005 unit worth $150,000 sitting on their lot now has to be sold almost immediately. And if there is no buyer for that unit, because the economy is in the crapper? It kind of repeats itself from here.

http://www.boating-industry.com/output.cfm?id=1928917




Sie note: I have absolutely zero affiliation with RMS nor have I ever been there.
 

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Dealers are not selling units, so floorplan financing is not getting repaid.
Exactly. You have proved my point.

Read the fine print of the financing. If it allows them to call the financing for whatever reason, and you can't capitalize to own the assets, you are no longer in control of the situtation.

These things aren't a suprise to dealers, it's in the print.
 

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Exactly. You have proved my point.
If your point is that slow motorcycle sales at RMS single handedly brought a multi billion dollar corporation like GE Capital to its knees, then I guess I do stand corrected. This RMS must be something else...... maybe I should have gone before it closed. Yawn.
 
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