LOS ANGELES — Starting in December, MotoLease LLC will roll out a twice-a-month payment structure for subprime lessors, Chief Executive and co-Founder Maurice Salter told Powersports Finance at the company’s dealer training seminars earlier this month.
“All subprime credit customers will be required to have bi-monthly payments, which helps with budgeting for smaller payment amounts,” added Managing Partner Emre Ucer. “We have a manual payment option if the customers want to send in checks. If they chose to participate in recurring ACH billing, we waive the security deposit requirement and the funds are automatically deducted to their bank account via ACH payment method.”
Prime and near-prime consumers have the option to use this method as well. Some auto dealers and even mortgage lenders have bi-monthly payment options, but it is a rare offering for powersport finance. However, it should be noted that Speed Leasing also offers twice-monthly payment options, as well as the ability for existing lessees to switch to that payment option during the course of their leases.
U.S. Equity Advantage — which created a bi-monthly payment program called AutoPayPlus — said dealerships sell an average 57% more F&I products when using its service.
Salter will sit down for a fireside chat at PowerSports Finance 2017. Salter’s fireside chat will be followed by a panel entitled “Credit Trends in Powersports Finance,” which will offer insight into current origination trends and an outlook on credit performance.
Additionally, Ucer will speak on a panel entitled “Keys to Successful Subprime Lending.” Other sessions include: Finding Loan Growth Amid Increasing Competition, F&I Dos and Don’ts, and Regulatory Compliance Update.