Lenders should aim to diversify their finance mix to include both loans and leases, amid the rise of leasing in powersports, Jeffrey Bilbrey, president of NetSol Technologies, told Powersports Finance.
Offering both loans and leases is a vital innovation that needs to happen in the industry, he added.
NetSol, which provides IT solutions for finance and lease companies, works with powersports lessor MotoLease on its LeasePak-Cloud platform. LeasePak-Cloud is a portfolio management solution for lease and loan originations that streamlines the finance process.
While MotoLease is currently the only powersports company on the platform, NetSol is in talks to sign on more powersports partners that are “very intriguing,” Bilbrey said.
While it’s typically more common to find powersports financiers who offer loans, leasing is “getting much bigger in this space,” Bilbrey said. “In this market, flexibility is really a key to being able to get a consumer to come on with you.”
Powersports is unique in that it is a “specialty product,” he added. Different consumers typically have different desires that need to be catered by a finance company. Powersports companies need to build attractive finance programs in order to make profit off of smaller ticket sizes, which includes add-on products to stack on top of the loan.
“To have flexible financial packages — different rates, different terms, different duration — [is an important innovation] … to be able to do loans and leases,” Bilbrey said. “Build in your maintenance, build in your insurance, build in your add-on equipment — because with powersports, let’s face it, you’re buying a lot of add-ons for your toy.”