Speed UTV

BUFF said:
We are almost halfway into Q-2 2022! I was hoping production would have started late Q-1 early Q-2, then start delivering to customers in July. This is now far fetched.This is going to be a tough go for the SPEED team. Economic conditions are not going to be favorable come Q-4/-Q/1 2023. With interest rates where they are headed will have people pulling back.

Time will tell........
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Thank you for your fake concern. We'll see how Polaris and CanAm escape these same economic conditions and possible sales slump. They're all in the same economy.

 
BUFF said:
Your very welcome!

LOTD you may be just wasting brain space if this start up doesn't pan out. Let a business prove itself prior to the chest pounding buddy! 

BRP & Polaris are well diversified and have the funds to survive a slow down.  I like there chances! 
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I'm going to ignore all of your spelling errors and concentrate on your unfounded faith in Polaris and BRP.

While they do make a variety of products, most of them are in the "nice to have" categories, rather than the "essential for life" categories. We don't need UTVs, ATVs, PWCs or small aircraft, or even small commercial aircraft. As the economy slows down, so do sales of those items, especially commercial aircraft.

Now if they produced food or bombs, they might be in a recession proof sector of the economy. They might have more money in the coffers, but then look at GE or IBM now, compared to what they once were. Even the giants of their sectors go the way of dinosaurs, because they move like dinosaurs.

 
Lord of the Dunes said:
Thank you for your fake concern. We'll see how Polaris and CanAm escape these same economic conditions and possible sales slump. They're all in the same economy.
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Just Curious - people that are on the wait list for the Speed and are doing financing are they locked in?  It looks like rates are gonna double over the next 6 months  as the Fed will have to get mortgage rates in the "teens" if they want to curb inflation and keep us out of recession... Those rates might shake out a number of buyers (also true for Canned hams and Pole-larry's)

 
BUFF said:
With interest rates where they are headed will have people pulling back.

Time will tell.......
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I was thinking the same thing and mentioned it to one of the sales representatives Mike when I saw the car over at Bert’s.  He just glossed over it. But yeah, I think once people who don’t got the funds see what their payments are going to be are in for a rude awakening and will start to back out. Hope not and hope it doesn’t affect Speed to much. I too was going to finance the car for a couple years but may just pay it off after a few months. 

 
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Fullthrottleguy said:
Just Curious - people that are on the wait list for the Speed and are doing financing are they locked in?  It looks like rates are gonna double over the next 6 months  as the Fed will have to get mortgage rates in the "teens" if they want to curb inflation and keep us out of recession... Those rates might shake out a number of buyers (also true for Canned hams and Pole-larry's)
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You think loan rates will get that high in the next 6 months?

I left my crystal ball at the cleaners, but that seems overly aggressive to me. Who knows, the gov't does stupid sh1t all the time.

 
Lord of the Dunes said:
You think loan rates will get that high in the next 6 months?

I left my crystal ball at the cleaners, but that seems overly aggressive to me. Who knows, the gov't does stupid sh1t all the time.
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Fed is making baby steps now to keep us at of recession, but its not gonna fix the inflation, so  either way we are screwed  ... a little shake out is now always bad and might let SPEED catch up whenever they start shipping. Given the supply issues and crazy cost increases its gonna be interesting to see  ...

 
NIKAL said:
The sales price is locked but no one’s interest rates will be locked until you get your loan. Yes rates are rising, and will rise more before the end of the year. But I don’t suspect another 1.5 or 2 % is going to cause but maybe a few to back out. If you’ve been waiting this long I’d be shocked that someone sells their spot because of a interest percent or two. Plus if a few interest points prices you out of owning a Toy, then you probably had no business buying one in the first place. 
 

And it’s not like the rates for a Polaris, Can Am, or any brand of recreational vehicle are going to be different. Guys are not going to bail on Speed because of interest rates and go buy a Honda. If you want a toy your going to pay the going rates. 
 

If anyone who has been waiting had half a brain they would have been putting a few hundred away each month, so when their Speed comes in you have a greater down and have to finance less. 
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True. But I think you’re giving people to much credit. Not everyone is that smart and if the economy tanks, I can see many of them who are affected just walk away. And Speed being a small fish could possibly suffer more so than the other big brands. They’ve already survived other recessions. That’s my only concern. 
 

Also, I really think Speed should have just built those first 250 cars the way he was supposed to back at the 2019 show. Start off small and then evolve the car to what we are seeing today. I think there would have been more interest and trust in him and the company and not as much hate and disappointment  from early buyers and people in general.  Or reached out to those early buyers and tell them that things have changed and if they still would like the car shown at the show or wait it out for the cars we are seeing today. Just my thoughts. 

 
As to powersports finance rates, companies like Sheffield and Freedom Road don't have very competitive standard rates. The low rate financing deals happen when the manufacturer buys the rate down. The big boys have the resources to deploy promotional rates when necessary, does Speed?  

 
Lord of the Dunes said:
The part John didn't emphasize is his chassis and suspension is all chromo. Since it's stronger than whatever Polaris uses, in order for Polaris to beef up their chassis and suspension and lack of proper triangulation, they used thicker fence posts, added more non structural tubing, and added all kinds of weight, like the solid steel bars on the rear arms just to band aid a horrible suspension design with too much toe change. If they did a better job at engineering it, they wouldn't have had to add more weight to the unsprung portion of their suspension, which according to physics, automatically results in a worse ride from the rear suspension. This in turn leads to another band aid - electronic shocks. More weight. Eventually all of the bad choices and band aids add a huge amount of weight.

I would have mentioned the pool noodles attached with zipties, but those don't weigh much, they just make me laugh harder.

:lol:
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Frickin killing me!

 
Cookie said:
2600lb before passengers, for the most part loaded you are nearing 4200lb with passengers and all the Accessories and stereo people add to their golf carts...........that is heavy
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FIFY

NIKAL said:
If anyone who has been waiting had half a brain they would have been putting a few hundred away each month, so when their Speed comes in you have a greater down and have to finance less. 
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Lol. Yeah, you have more faith in the public than me. Guaranteed most are gonna 100% finance it, less whatever minimum down is required by the bank. 

Lord of the Dunes said:
Is the math too difficult for you? You don't have to use multiplication, you could just use addition.

300 + 300 = 600.

See how easy that was?
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Yes. Displacement increases always result in linear power gains. 

 
Rockwood said:
Lol. Yeah, you have more faith in the public than me. Guaranteed most are gonna 100% finance it, less whatever minimum down is required by the bank. 
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Very true. I was always amazed how many people with very high paying jobs were turned down due to debt to income ratio. Sometimes more down money could get them over the hump, but usually not. A very large percentage of the population lives well beyond their means. That's why some mega dealers have in-house finance divisions where they do "get-me-done loans" with terms that would bring tears to your eyes. We had a young man wanting to trade a DRZ on a SxS. The bike retailed for @$7k new. He had made payments for over a year, and when I called infamous dealer for a payoff it was @$10K!

 
Lord of the Dunes said:
You think loan rates will get that high in the next 6 months?

I left my crystal ball at the cleaners, but that seems overly aggressive to me. Who knows, the gov't does stupid sh1t all the time.
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The Feds plan on raising the rates several more times this year.  Expect home mortgage rates to be in the 7% - 7.5% range.   Powersports loans were in the 6.99% range depending on credit score before all this inflation.  I would expect the loans to jump up to 10%.  Manufactures might offer lower interest rates for a 2 or 3 year loan.  Money is going to get expense.   

 
Sand Shark said:
The Feds plan on raising the rates several more times this year.  Expect home mortgage rates to be in the 7% - 7.5% range.   Powersports loans were in the 6.99% range depending on credit score before all this inflation.  I would expect the loans to jump up to 10%.  Manufactures might offer lower interest rates for a 2 or 3 year loan.  Money is going to get expense.   
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Where are you seeing any experts predicting these kinds of numbers for mortgage rates? Of course right now at over 5% we have exceeded what many experts said we would climb to this year.

 
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