The National Marine Bankers Association (NMBA) quarterly survey for the period ending June 2013 reports 100% of all lender respondents (both marine service companies and banks / finance companies) indicate dollar volume of loans for new and used boats and yachts was the same, or up over the same period in 2012, surprising some marine lenders who had projected volume may be down. 92% of all lender respondents expect next quarter dollar volume to be greater than or equal to the same period last year, and this is the highest level of optimism shown by this group since the first Quarter of 2012Only 16% of lender respondents say new boat financing represents greater than 50% of their dollar volume, while 75% of the respondents indicate new boats make up less than 26% of their lending. This suggests that at least 50% of the finance volume is coming from pre-owned transactions, following historical patterns.
For the first time since 1Q2012 lenders reported less stringent credit requirements, and dramatically so. Throughout 2012 and into the 1st quarter of 2013 a steadily increasing number of lenders reported credit tightening. This past quarter only 8% reported credit tightening, down from 20% in the 1st quarter, and 8% also reported less stringent credit criteria. Those reporting stricter standards mentioned liquidity and net worth requirements as the areas they felt had become more demanding. 33% of lenders reported consumer credit quality improved in the 2nd quarter, and that is the largest increase since 4Q2011.
The NMBA introduced the brief quarterly members’ survey in 1Q 2011 to gauge changes in the lending environment and identify trends that could be used for business planning. This survey has gained significant traction and is now delivering valuable results to the marine industry.
Twenty-six percent of the NMBA lender members (loan originators/brokers/ financial service firms, banks, credit unions, and finance companies) responded to the 2nd quarter 2013 survey, with the majority having a national presence.
The list of survey questions follows.
How does dollar volume of loans booked 2Q2013 compare to 2Q2012?
92% responded: volume was up
8% responded: volume was the same
Membership in the NMBA includes financial institutions such as commercial banks, private financing firms, savings and loan companies, and credit unions. Firms extend or originate credit to consumers, retailers/dealers and manufacturers of recreational boats and equipment. Associate members are those which provide services to the marine lending community.
Interesting in getting a boat loan, or refinancing your yacht? Submit info with Denison Yacht Sales and we’ll put you in touch with one of our financing partners.
