Chrome Capital celebrates its five-year anniversary today and is on tap for a successful year, according to Peter Wasmer, the company’s founder, president, and chief executive.
“We have found a sweet spot for both riders and dealers,” Wasmer said in a company press release. Many motorcycle riders “get the itch to trade” in their bike after two and a half years of ownership, “but for most, that is not possible because they are stuck in an 84-month loan.”
Chrome Capital makes leases on pre-owned Harley-Davidson motorcycles and new Indian and Victory motorcycles in 24-, 36-, and 48-month terms. The lender doubled its year-over-year lease originations in 2015, and is on a pace to double again this year. Chrome Capital makes leases for 750 dealers in 41 states across the U.S., and also employs more than 50 team members at its Naples, Fla. headquarters.
Chrome Capital isn’t the only leasing provider finding success in powersports. MotoLease reported a 40% increase in year-over-year lease originations in 2015, and HorsePower Financial Services saw a 200% increase for 2015. Additionally, Nextep Funding LLC, a leasing provider for powersports vehicles $5,000 and under, is projecting a 500% year-over-year growth in its lease originations in 2016.
The key to finding success in the leasing and pre-owned markets “is the value of the asset and the stability in future markets,” Wasmer previously told Powersports Finance. “One of the things with pre-owned Harley-Davidson motorcycles is there is an open liquid market, and there’s good demand and predictable value. What we have found in designing our leasing program is that with proprietary algorithms we can take into account each independent model — and we’ve been able to tweak those to a very high degree of accuracy.”