Extreme Motorsports announced that it has completed the acquisition of Southern Offroad Vehicle Services. This acquisition will allow the company to provide financing to their customers and will also make Extreme Motorsports the first to offer leasing options for sandcar purchases.
The company will now be able to achieve greater throughput and profit margins by shifting its financing costs to the customer instead of financing the 12-month or more loans through the operating cash flow of the company.
Alan McCaa, President and CEO of Extreme Motorsports, commented, “The acquisition of SOVS provides Extreme with the capability to deliver direct financing to our customers at rates comparable to dealers of standard over-the-road vehicles. Through this acquisition, we provide what no other sandcar manufacturer in the world is able to claim: in-house financing to all customers. This not only ensures consistent operating cash flows to Extreme, but incentivizes buyers who might otherwise defer a purchase to a later date to complete a purchase immediately through consumer financing.”
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