John Deere Credit will exit the RV retail finance business effective Sept. 28, the company announced.
The decision was not the result of concerns about the impact of last week’s terrorist attacks on consumer confidence, said Gordon Tjelmeland, spokesman for John Deere Credit.
Instead, the decision was based upon “a careful analysis of where we are. Over the past few years, John Deere Credit has experienced increasing demand for financial services related to core equipment financing,” Tjelmeland continued. “In evaluating its objectives, the company determined that John Deere Credit’s resources and efforts should be focused on these businesses.”
John Deere Credit entered the RV market in 1987 and it “experienced profitable results while benefiting from strong relationships built with RV dealers and customers,” Tjelmeland said.
On Monday (Sept. 17), John Deere Credit Division Sales Manager Brian Conrad faxed a letter to RV dealers that includes the following details about its exit plan:
John Deere Credit will stop accepting applications for retail financing effective at 4 p.m. (Central Time) on Sept. 28.
Each approval and associated finance rate will be good until Oct. 30, which also will be the last day for contract funding.
The termination of each dealer’s John Deere Credit Recreational Products Retail Dealer Finance Agreement will become effective Oct. 31, but “the terms of your John Deere Credit Recreational Products Retail Dealer Finance Agreement shall continue to apply to all contracts funded for you by Deere Credit Inc.”