Kymco’s Vice President of Sales and Marketing, Bruce Ramsey, is satisfied with the company’s consumer lending options across the credit spectrum, but there is one financing avenue he’s missing — a revolving credit line.
“Nobody seems to want to offer a revolving credit program anymore in the powersports arena,” Ramsey said. “There use to be several: Capital One was in it pretty deep at one time and of course GE many years ago. But now, no one wants to take that risk.”
Kymco has partnerships with Sheffield Financial and Synchrony Financial for its prime customers. Roadrunner Financial covers Kymco’s subprime consumers and Nextep Funding provides leasing.
While adding a revolving credit option would be nice, Ramsey also understands the risk in lending on an unsecured asset.
“A person can resell the vehicle, destroy it to a total loss — whatever the case may be — and there is no real recourse there,” he said. “There is also probably a lot of control measures from the federal government on consumer lending that have come in place in the past five to six years that limit their ability to charge extremely high interest rates, which would make it not necessarily better for the consumer but better for the lender from the standpoint of their loss ratio versus their revenue.”
However, there is one revolving credit program making waves in the powersports space from Citi Retail Services. In July, Honda Motor Co. inked a deal with the bank to start the Honda Powersports Revolving Finance Program.
Citi is even looking for other OEM partners in the space, the company told Powersports Finance back in July.
“We are regularly evaluating new partners and are engaged in conversations with various players across the powersports industry,” said Leslie McNamara, managing director and executive vice president of business and market development at Citi Retail Services. “At the same time, we are pursuing creative ways to help our existing partners increase their sales and build customer loyalty. This is a growing industry, where we offer extensive expertise and ultimately add value for our partners.”
Kymco also recently announced an extension of its floorplan finance partnership with Wells Fargo Commercial Distribution Finance. The manufacturer offers a full range of scooters, small- to mid-sized motorcycles, ATVs, and side-by-sides.