In tune with its 50th anniversary, Kawasaki Motors Corp. USA is offering a Golden Anniversary Sales Event via its third-party financial providers, Synchrony Financial, Capital One Financial Corp., and Sheffield Financial, the company announced in March.
The powersports industry can expect to see “more aggressive promotions” throughout 2016, such as 0% financing, which is an incentive “that has not happened in the powersports industry in a long time,” Jack Snow, Sheffield Financial’s founder, president, and chief executive, previously told Powersports Finance. Arctic Cat, another one of Sheffield’s OEM partners, has also jumped onboard with 0% financing promotions through April 30.
The Kawasaki financing promotion is valid for 0% annual percentage rate (APR) for 36 months for new, unregistered Kawasaki MULE Pro-FX and MULE Pro-DX utility vehicles, according to the company’s website.
Additional offers include 3.95% APR for 36 months, 5.95% APR for 60 months, and 7.95% for 72 months for new, unregistered Kawasaki jet-skis, motorcycles, ATVs, MULE utility vehicles, TERYX recreation utility vehicles, and watercraft. All offers are valid through April 30.
While Capital One announced in August 2015 that it will no longer be renewing contracts with its OEM partners, the bank continues to offer retail financing to Kawasaki consumers until the end of term. Capital One decided to “wind down” its powersports lending “over time” after reviewing its “partnerships business” last year, Alli Sherman, a spokeswoman for Capital One, previously told Powersports Finance.
Powersports is an “uncapped market,” Steven Chavez, senior manager of credit services at wholesale financer Kawasaki Motors Finance Corp., told Powersports Finance. “There aren’t a lot of players out there, and there are not a lot of banks that understand it.” The banks understand auto finance, but when it comes to powersports it’s different to them, it’s a cyclical business, he said. “From a retail side like Capital One, a lot [of retail lenders] don’t understand powersports or think they understand it but don’t have the infrastructure to support the risk; it’s a different risk than auto.”