American Cycle Finance Preps Off-Road Program to Attract Millennials

Subprime lender American Cycle Finance is targeting millennial riders by adding a limited off-road vehicle program, President Ben Donnarumma told Powersports Finance.

“We believe as an organization and being in the powersports business that we all need to figure out this millennial thing because if we don’t, it’s going to cause problems in the industry,” Donnarumma said. “We’re looking very heavily into that. We’re financing electric bikes and a lot of the smaller [engine] bikes, and some off-road, as well, because everything is pointing towards the millennials looking at those specific areas.”

As a means to cater to millennial riders, the Marlborough, Mass.-based lender finances new and used Zero electric motorcycles, with sights set on offering a limited off-road program in the next 90 to 120 days. As a subprime lender, the company is taking a more conservative approach to off-road vehicles because the units tend to be riskier for low credit tier consumers, Donnarumma added.

For More: Adapting to Dealer Feedback Beneficial for Lenders and Dealerships, Says American Cycle Finance [VIDEO]

“People have to have more disposable income and somebody with a side-by-side, you’re not going to drive the thing down the road to take it to where you’re going,” he said. “You need a truck, you need a trailer, and other things. And that all takes money. We want to make sure that [the consumer] can afford an off-road unit. Not to mention off-road units depreciate much quicker. So, the off-road stuff we’ve got to be very conservative on it.”

Additionally, the lender is aiming to add 15 states to its coverage. Since the start of the year, American Cycle Finance added Maryland, Indiana, and Colorado; it plans to add Washington, Kansas, and Alabama in the next 30 days. Nine other states, including California, will join by the end of July. American Cycle Finance works with 350 dealers and plans to be nationwide by 2020.

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