Despite a slowing of originations due to the hurricanes earlier this year, powersports lenders are seeing higher year-over-year originations and expect growth to carry into next year, according to panelists at PowerSports Finance 2017 in late October.
“I know we are seeing [growth], and I know the dealers are seeing it,” Kristi Mercier, director of operations at ThunderRoad Financial, told attendees. “There was a little bit of a slow from unfortunately the hurricanes. But we are actually seeing a pickup in the month where it should be — as us lenders call it — ‘hiding season.’”
Dealers and lenders are in a “really good position,” added Ben Donnarumma, managing director of American Cycle Finance. Harley-Davidson Inc. has pledged to create 2 million new riders over the next 10 years, and 25% of those new riders are expected to be subprime, he said.
“You’re seeing financing on side-by-sides, ATVs, the 2018 Harleys that just came out; there’s a lot of product out there, and the demand is going through the roof,” Mercier said. “You have a lot of new dealers opening too, and that speaks to the fact that this sector is growing very quickly.”
“I really think that by supporting each other and our consumers, our customers, it’s going to make even more originations because it will be all about word of mouth,” she added. “It will be about customers actually figuring out, ‘Oh wait, there are other options.’ I foresee 2018 being a wonderful year.”
Watch the panelists discuss the state of the powersports industry in the video below — the fifth video in a series from PowerSports Finance 2017, held recently in Las Vegas.