While subprime finance options are still lagging in powersports today, some lenders and startups have emerged, or increased their footprint in the industry to pick up the slack in 2017.
Startups like Speed Leasing Co. launched into the space in 2017, following the departure of subprime leasing provider Chrome Capital late last year. However, lenders like Harley-Davidson Financial Services — which tightened subprime underwriting briefly earlier this year — have remained cautious.
There is no “bad risk” but only “miss-priced risk,” said MotoLease LLC’s Managing Partner Emre Ucer. Subprime risk isn’t increasing, it just requires more attention. The key is to “make sure payments are set up within their budget,” he said. “Be careful about their income. Their credit is not there, that’s why they are subprime. You can’t depend on credit, you must depend on income.”
With 2018 right around the corner, here is today’s countdown of PowersportsFinance.com’s top 5 subprime stories of the year:
- 5 Best Practices for Successful Subprime Lending
- Subprime Risk Remains Unchanged
- Exiting Subprime Powersports Lenders Could Spur Dealer Co-Signers
- MotoLease Implements Twice-Monthly Subprime Payment Plans
- HDFS Share Down 100 Basis Points in 2Q Amid Subprime Tightening