Delinquencies dropped year over year at ThunderRoad Financial thanks to an improved economy, President Don Hummer told Powersports Finance.
Delinquencies fell 30 to 40 basis points compared with the same time last year, Hummer said without specifying the delinquency rate. The Reno, Nev.-based lender credits the improved portfolio performance to consumer confidence in the economy.
“I think people held off for a while on buying things, and then over the last couple years, they bought into this being a good economy,” Hummer said. “And so, they’re paying [off their loans]. Sometimes they’re paying too fast. It’s amazing how quickly a lot of our loans are getting paid off. That’s usually a really good indicator of the economy.”
For More Read: ThunderRoad relaunches full-spectrum program
For example, ThunderRoad has seen consumers pay off six-year loans in as little as 35 months, which is typically a “strong” indication on the state of the economy, Hummer added.
Other factors of a healthy economy include consumer confidence, which rose to 135.7 in July, the highest level of the year, according to the Consumer Confidence Index. Additionally, the unemployment rate has fallen to 3.7% in July from 4% in January, according to the Bureau of Labor Statistics.
ThunderRoad launched two programs last month that allow it to finance consumers from deep subprime up to super-prime. The lender works with 500 dealers in 26 states.