Who will replace Capital One Financial Corp. in powersports finance in 2016?
The bank told its OEM partners – Yamaha, Polaris, Kawasaki, and others – back in August that it would gradually reduce its investment in powersports financing. That move is creating a void many OEMs and dealers are still looking to fill, Joe Becerra, finance director at F&T Valley Motorsports, told AFN.
“I haven’t found the replacement for CapOne yet, mainly because they were offering revolving loans,” he said. “I work with both Synchrony and Sheffield, for example, but CapOne was a different program and we had demand for that.”
With its revolving loans, CapOne wouldn’t penalize or increase the interest rates on accounts that were overdue, unless they were severely overdue or close to default, Becerra said. Customers finance more than 95% of Pharr, Texas-based F&T’s deals today, up from 70% a few years ago, he said.
“Actually, now the consumers are a little more educated on the programs that are available and interest rates, and they are also making smarter buying decisions, like purchasing prepaid maintenance programs,” Becerra said. “With all the side purchases that come with powersports, a credit-card like program, I think, is still in demand.”