ATV and side-by-side manufacturer CFMOTO Powersports Inc. has signed a second floorplan provider, Wells Fargo CDF, to give dealers a choice about which provider they want to use to finance their inventories. CFMOTO already had an agreement with Northpoint Commercial Finance.
OEMs ordinarily use a single floorplan provider, but offering dealers multiple options may become more popular, said Darren McCarthy, Northpoint’s vice president of business development.
“It’s an accommodation by both of us to [CFMOTO], who wanted to have their dealers have the alternative to utilize more than one source,” McCarthy said.
Wells Fargo, which bought GE Capital’s $13 billion portfolio in 2015, has been signing or resigning OEMs in the past year, including Mahindra Vehicle Service & Sales, Ducati North America Inc., and Suzuki Motor of America Inc.
McCarthy expects that “more and more manufacturers are realizing they want to have the ability to have their dealer base make the choice of who they want to finance with.”
Wells Fargo declined to comment for this story and CFMOTO could not be reached by press time.