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5 Lenders Altering Finance Offerings in 2017

  • Natalie Mattila
  • May 2, 2017
  • 0

Competition continues to ramp up as new lenders enter the powersports space, causing many players to bolster their finance offerings to meet market demand.

Westlake Financial Services, for example, continues to push into used financing. However, many lenders are even altering their programs altogether, in an effort to remain competitive.

“Pretty much every major brand has a partnership with a finance company to operate as a captive, and then there are revolving credit type of lenders that seem to be everywhere,” Todd May, United Finance’s vice president of dealer development and remarketing, told Powersports Finance. “There still is room for new players, but it’s definitely more competitive.”

Here are 5 lenders altering — or planning to change — their finance offerings:

1. Roadrunner Financial

Roadrunner Financial is slated to launch a used-vehicle financing program this month, thanks to “tremendous” demand from dealers and consumers, Chief Executive Jason Guss told Powersports Finance“We are still finalizing the program, as of right now, there aren’t any hard limitations [on the age of the vehicle],” he said.

New York-based Roadrunner Financial is a subsidiary of lender-aggregator Octane Lending Inc. The near-prime lender currently works with 15 manufacturers, and operates in 42 states.

2. American Cycle Finance

American Cycle Finance, while still operating as a subprime lender, altered its finance offerings earlier this year to finance only on-road, titled units.

“We were doing off-road units, but because of title laws, it became difficult to collect collateral if there are issues,” Ben Donnarumma, managing director of American Cycle, told Powersports Finance.

American Cycle Finance — formerly known as Ride Today Acceptance — entered into a merger agreement with Cardiff International Inc. in February 2017. The lender makes loans for 204 dealers as of January 2017.

3. Yamaha Motor Finance Corp. USA

Yamaha Motor Finance Corp. USA extended its used-vehicle credit card pilot program beyond its initial trial-end period of March 31. The program was launched in February to finance nearly all powersports brands and used vehicles up to seven years old.

“It’s a legitimate need that the dealers have, in terms of finding a financing source for their used products,” Vijay Patil, the captive’s chief risk and strategy officer, told Powersports Finance. “As a captive lender, if you can support dealers with more financing options, you can build that relationship stronger [rather] than just building a relationship with them on new-vehicle financing. We truly view dealers as our partners, and if they express used as a financing need, we will try to see if we can help them out with it.”

4. CycleOne Financial

Startup CycleOne Financial will expand its breadth of offerings to include new motorcycle leasing, after it raises its leasing limit beyond $12,000 per unit, President Logan Riley told Powersports Finance.

Orlando, Fla.-based CycleOne Financial is a subprime lessor of pre-owned motorcycles included in the NADA Guide. Currently, lease amounts top out at $12,000, and lease terms range from two to four years. The company will shift into the prime credit band — where consumers typically have

higher incomes and better credit histories — to limit risk exposure for the higher-dollar leases.

CycleOne has funded 600 leases since its launch in April 2015, and currently makes leases for 15 dealerships in the Orlando and Tampa Bay areas.

5. Advancial Federal Credit Union

Advancial Federal Credit Union “muscled up” its powersports financing program this year by including side-by-sides and ATVs in its portfolio, Vice President of Lending John Kurtz told Powersports Finance.

Side-by-sides are a “hot market” right now, Kurtz said, and the overall credit scores seem to be higher than for motorcycle consumers. The new program rolled out in mid-January.

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