MotoLease has rolled out nationwide an updated scoring model to better determine borrowers’ loan risk, Managing Partner Emre Ucer told Powersports Finance.
The scoring model is based on an algorithm developed in-house after doing an “extensive” data study, Ucer said. The scoring algorithm tailors itself to each customer and measures risk by looking at factors other than credit score, such as payment history.
“We believe that a lot of our applicants will be surprised to see that we may put them in upper credit tiers,” Ucer said. “What I mean is somebody may have a low FICO score, and most finance companies might automatically put them in lower credit tiers, which automatically means that you have to pay more upfront and your monthly payments will be higher.”
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MotoLease categorizes borrowers into three groups: Fast Track, Select, and Credit Builder. Fast Track is for prime customers and is meant to be a quicker and more simplified way to get approvals. Select is for near-prime consumers, and Credit Builder allows for subprime borrowers to potentially re-price their lease after making on-time payments.
Previously, MotoLease utilized six credit tiers and a different fee structure, so the changes simplify the program, Ucer said.
Based in Los Angeles, MotoLease works with 1,200 dealers.