Polaris Industries Inc. has partnered with FreedomRoad Financial to form a new “captive-like” retail finance program, called Performance Finance, according to documents obtained by Powersports Finance.
The new consumer finance program — slated for launch Sept. 1 — will exclusively be offered for new and used Victory and Indian motorcycles and for Polaris Slingshot vehicles, as well as for all other brands of used motorcycles from authorized Polaris dealers, according to the document. Polaris anticipates phasing in the financing of other Polaris vehicles throughout 2017.
Polaris declined to comment on the program.
“The Performance Finance structure is creating what I would call the ‘captive-like’ structure,” Mike Speetzen, chief financial officer of Polaris, said in the document. Performance Finance should give Polaris “a competitive advantage,” he added.
Performance Finance will include flexible promotional offers, flat fees paid to dealers as a percentage of the amount financed, expedited funding via document imaging, and dedicated dealer training.
Polaris, which sold $4.7 billion of powersports vehicles last year, contacted its dealers on July 31 with instructions on how to enroll, and dealers were asked to sign a Performance Finance dealer agreement by Aug. 15.
Starting Sept. 1, enrolled dealers can submit applications through the goperformancefinance.com website, which is currently under construction. Dealers may also use the site to review applications in progress, instant-message underwriters, prepare contracts, and upload funding packages. Consumers, meanwhile, will be able to manage their accounts, make payments, and view loan history, among other features.
Performance Finance will complement the manufacturer’s wholesale finance arm, Polaris Acceptance — a joint venture with Wells Fargo Commercial Distribution Finance, according to the documents. Polaris Acceptance was formed in 1996 and was set to expire in February 2017, but in late December 2015, Polaris and CDF extended the agreement through 2022.