Powersports Auction plans to sign with two retail lender partners this month, Powersports Finance has learned.
The lenders will sign on to Powersports Auction’s platform to offer financing to consumers who bid and win motorcycle auctions. “We have been in discussion with a few different [consumer finance lenders], and we have narrowed it down to two,” Founder James Scaggs told Powersports Finance.
The company has partnerships outlined with a prime and a subprime lender, which will be announced alongside the introduction of a prequalification tool for the platform. The tool will allow for a soft-pull, preapproval within 30 to 60 seconds, he said.
Founded in 2016, Powersports Auction operated in “stealth” mode as it built out new integrations and figured out its desired business model, which until late last year had been consumer-facing auctions through a limited number of dealers. However, as more dealers have been inquiring, Powersports Auction made a shift to include online dealer-to-dealer auctions and opened its platform to all dealers.
The website has about 20,000 vehicle listings from almost 600 dealer websites, Scaggs said, including Freedom Powersports. Partner dealerships integrate with Powersports Auction and select inventory to list in online auctions.
“We started working with [Powersports Auction] saying, ‘As a dealer, this is how we would use it, and how it would be beneficial to us,’” Kevin Lackey, chief executive of Freedom Powersports, told Powersports Finance. “They have been making those changes over time.”