Capital One Financial Corp.’s decision to abandon powersports finance last August appears to be causing challenges to the four OEMs it serves. Public reports indicate Capital One will end its third-party financing arrangements through the first quarter of 2016.
Many powersports vehicles are purchased with revolving credit, rather than with term loans. Cap One provides the revolving financing for Kawasaki Motors Corp., Polaris Industries Inc., and Yamaha Motor Corp. products, among others.
Vijay Patil, chief risk officer at Yamaha Motor Finance Corp., the carmaker’s new captive, said Yamaha was hard at work to find a replacement for Capital One on a revolving credit program. “We will see how the whole Capital One thing shakes out,” Patil said. “Four big players depend on that card program. It might create opportunity, as well as challenges.”