Excel Finance, a motorcycle finance provider, expanded its lending options in December to include auto loans, Valerie Figueroa, Excel’s dealer relations manager, told Powersports Finance.
The Lakeway, Texas-based company was established in 1999 and originally serviced loans for both cars and motorcycles. Excel halted its auto loan services in January 2014 to make program changes, and reopened the auto department in December, Figueroa said. “We decided to get out of the auto business due to the competitive market at the time,” she added. “Credit unions were buying a lot deeper and were taking the majority of our business.”
Excel now has a higher percentage of motorcycle loans — 80% — as the auto dealer network is in the process of rebuilding, Figueroa said. “We found a niche in the subprime motorcycle industry,” Figueroa said. “At the time, there weren’t too many subprime lenders financing motorcycles. We kept our focus on Harley-Davidson, which usually comes along with better paying customers.” Excel funded 700 motorcycle loans in 2015 — worth $2 million — up from $1 million in 2014.
Excel Finance has maintained relations with its roster of auto dealers over the years, and hopes to contract those dealers by the end of the year, Figueroa said. “We are making rounds and visiting our old auto dealers we had signed up with us to try and get everything back up and going,” Figueroa added. Excel worked with 50 to 60 auto dealers prior to placing auto loan services on hold in 2014. The company currently works with 10 to 15 auto and 20 motorcycle dealers across its 13 branches in Texas and Louisiana.
Excel Finance offers loans on vehicles five years or newer and targets the subprime market. The average monthly payments for motorcycles range between $300 and $350, and between $400 and $450 for cars.