The golf cart market is growing so rapidly that many reports are outdated shortly after publication. In 2023, the market was valued at $2.5 billion and is expected to rise drastically within the next eight years. The golf cart boom can be attributed to several causes, but the most prevalent reason is their affordability and utility.
Thinking of golf carts may conjure an image of the small, simple carts that cost only a couple thousand dollars. But the price range of golf carts is wider than you may expect, with costs ranging from $4,000 to $30,000, depending on make, model, customizations, and age. This price range means golf cart loans can be treated similarly to auto loans.
The rising interest in golf carts is driven by the various benefits they offer that standard vehicles can’t compete with:
- Cost-efficiency
- Maneuverability
- Eco-friendliness
- Indoor usability
- Lower fuel costs
- Quiet operation
- Low impact on infrastructure
- Accessibility
- Customizability
- Community image
Though golf carts were originally invented to be used on the golf course, a variety of industries and individuals use them today. There are two subcategories of interested buyers in the golf cart market: commercial and personal.
Commercial
Many brick-and-mortar businesses use golf carts for easy transportation between buildings, while pop-up events — such as festivals or concerts — purchase golf carts for customer service and safety.
The commercial industries inclined to invest in a fleet of golf carts include:
- Hotels and tourism
- Golf courses
- Nature parks and campgrounds
- Event venues
- Amusement parks
- Airports
- Apartment complexes
- Higher education campuses
- Construction sites
- Large factories or businesses
Depending on the industry and the business, the number of golf carts an organization needs varies. You’d expect golf courses to boast large fleets, and you’d be right: The national average of golf carts per course is 57. But businesses that use golf carts for staff or guest transportation, maintenance, or other needs may only have a handful of carts. Even in the lower cost range, small fleets could cost over $20,000, and large fleets could cost nearly $250,000.
Additionally, some businesses suggest replacing their entire fleets every four years to maintain quality and image, while others choose to upgrade their fleets as often as every year. The quantity of carts organizations purchase for their fleets and the frequent replacements needed due to maintenance makes the market a stable, profitable investment.
Personal
While the need for golf carts is obvious for commercial use, the individual desire for golf carts to serve personal needs is apparent — over 200,000 units were sold in the U.S. in 2020 alone.
Commonly, those who live and work on large properties or run small businesses find golf carts are necessary investments for their operations. In rural areas, farmers use golf carts as a quick and efficient way to survey their land and crops.
In age-restricted and gated communities, it’s common for residents to own a golf cart instead of a standard vehicle since they rarely travel beyond their neighborhoods. Many older individuals have “a home away from home” they travel to throughout the year, and they enjoy keeping a golf cart at these second homes for convenient travel to local spots.
Similarly, some small towns in the U.S. have popularized golf carts as secondary transportation for quick errands and around-town travel. Other green towns have taken advantage of the eco-friendliness of golf carts and even have golf cart garages attached to newer home builds.
The growth and popularity of golf carts for commercial and personal use is a positive sign that your institution could benefit from financing golf cart purchases. By offering loans for golf carts, you can tap into this expanding market and attract a diverse range of customers — a win for both the golf cart industry and your financial institution.
