Motorcycle leasing provider Chrome Capital stopped accepting lease applications on Sept. 15, and is expected to close its doors amid a halt in investment funding from Leucadia National Corp., according to Leucadia’s third-quarter earnings report.
“This is really a shift dictated by our major investors who — for their own reasons — are exiting the business,” Peter Wasmer, the company’s president and chief executive, told Powersports Finance. “This really has little to do with Chrome Capital’s business so much as it has to do with how we fit into their overall portfolio of much larger companies.”
Chrome Capital, by comparison, is a “very small component” of Leucadia’s multi-billion dollar enterprise, he said. Even with Chrome Capital doubling originations every year since its founding in 2012, “Chrome’s footprint was not as large as that which would have met their portfolio company size requirements at this time,” he added.
Leucadia owns 85% of Chrome Capital, which is in the process of “winding down,” according to the earnings report.
Chrome Capital will continue to support its dealers to fund outstanding leases, Wasmer said. “Our portfolio performs exceptionally well, and resulting cash flows allow us to fund all outstanding bike leases,” he said.
Additionally, Chrome Capital is “hopeful for a return” with a new platform sometime in the next 12 months, Wasmer said. Under a new platform, Chrome Capital might even be able to expand its offerings, he said. “We have had an excellent, raw market success rate with preowned Harley-Davidsons, and we believe other OEM companies would benefit from leasing to improve sales and customer retention.”