LAS VEGAS — About 67% of industry participants believe lenders will “fight over existing marketshare” as a result of the influx of new entrants into the powersports finance sector, according to a live poll conducted at yesterday’s PowerSports Finance 2017.
The poll resulted in a landslide response, as only 19% of industry participants think lenders will generate new marketshare. Additionally, 9% of respondents said there will be “no change in the competitive landscape” and 5% said “more lenders will fail.”
However, American Cycle Finance Managing Director Ben Donnarumma is confident the Marlborough, Mass.-based subprime lender will not take business away from other companies.
“We believe we will make a large impact on the marketplace by not taking any business away from the other finance companies because we believe the subprime powersports industry is 15 to 20 years behind the auto side and we are just getting started,” Donnarumma told attendees during a panel discussion.
American Cycle Finance — formerly known as Ride Today Acceptance — is a subprime, on-road motorcycle lender that was founded in 2015. It entered into a merger agreement with Cardiff International Inc. in February 2017.
“We believe there is a lot of business to be had in the subprime industry without taking anything away from current lenders,” Donnarumma said. “The [Motorcycle Industry Council] was saying that we need to expand to new millennials and the subprime market — subprime is what I think we are missing. Go out and expand the market.”