FreedomRoad Financial forecasts “healthy” growth in 2016, after closing out its “best year ever,” Tom Collins, executive vice president and managing director, told Auto Finance News.
“It was a great year, as far as loan volume goes,” he said. “Our loan volume increased 35% year-over-year in 2015, and we expect continued growth this year.”
The double-digit increase was not entirely organic, and was driven mostly by new manufacturer partnerships, Collins said. Namely, Reno, Nev.-based FreedomRoad added Polaris to its OEM roster in the beginning of 2015, and Arctic Cat in late 2014.
“Arctic Cat is a great addition, because it allowed us to diversify our portfolio from financing only motorcycles, to financing powersports,” he said. “Our business model is a little different, and is one in which we had chosen to partner with a number of OEMs, and play the role of their captive finance company.”
Other OEM partners include Triumph, KTM, Husqvarna, Victory, and Indian. Currently, FreedomRoad works with more than 1,500 franchised dealerships and is a full-spectrum lender. Collins also said that the company will continue to explore the subprime space going forward. “The industry doesn’t do enough used and subprime financing,” he said. “Our overarching goal is to look deeper into that space and see what we can do to help more customers get approved.”