American Cycle Finance is piloting a program for cruiser motorcycles to offer subprime consumers a lower monthly payment, President Ben Donnarumma told Powersports Finance.
The program, for domestic and metric cruisers, places the consumer into one of 12 tiers based on their credit score. Then, depending on the model, the consumer has the potential to finance the bike without a down payment.
American Cycle Finance created the program after looking into the performance of its portfolio over the years and determining that it would be able to “open the floodgates” to lower monthly payments, Donnarumma said.
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The lender launched the pilot earlier this month with five dealerships and plans to expand the program to more of its dealer base with the help of an in-house origination software slated to launch by yearend.
Additionally, American Cycle Finance is targeting a similar program for sport bikes after the cruiser program is available to all dealers, Donnarumma said.
The Marlborough, Mass-based lender works with 420 dealerships.