Hubbard Powersports is experiencing a $50,000 boost in monthly loan approvals, after partnering with Roadrunner Financial seven months ago, Montana Hubbard, the dealership’s head of marketing, sales, and financing, told Powersports Finance.
“It’s $50,000 worth of approvals that we never had before, but not all of that amount was funded or went through,” she said, “but it’s $50,000 worth of opportunity that we didn’t have before.”
Russellville, Ark.-based Hubbard Powersports is a Can-Am, Arctic Cat, and Kymco dealer. Hubbard already has three other active lender partners — Sheffield Financial, FreedomRoad Financial, and Pine Bluff, Ark.-based Simmons Bank — but until the dealership teamed up with Roadrunner, it did not have a “second-look,” or near-prime, lender option, Hubbard said.
“We never had an avenue for people who, maybe they filed bankruptcy two years ago, or they have been divorced and are suffering, credit-wise, because of issues with that,” she said. “A lot of times, too, people would come in and their identity had been stolen, and we couldn’t work with that, because their credit was hurt even after it’s been off their score and off their record. So, it was nice for us because we had an avenue we could market and say, ‘Hey no matter what your situation is, we have opportunities for you to get financed, or your chances better than we had before.’”
Roadrunner Financial, which officially launched in June 2016, is a joint venture between lender aggregator Octane Lending and three bank and non-bank partners, Chief Executive Jason Guss told Powersports Finance in February.
Octane Lending was founded in December 2014 to help dealers efficiently secure financing for their customers from a marketplace of lenders. Dealers reached out to Octane for a solution regarding customers that did not fit into their prime or subprime lenders’ programs, and Octane was unable to attract such lenders to their platform, Guss said. As a result, Octane launched Roadrunner Financial to help fill the void of a near-prime lender.
Roadrunner is projected to double its dealer network by yearend, bringing the total to 1,200; it also hopes to expand nationwide into the lower 48 states by June, Guss said.Like This Article