Although subprime has always been MotoLease LLC‘s sweet spot, the leasing provider plans to expand its concentration into the prime and near-prime markets in the remainder of 2017, Managing Partner Emre Ucer told Powersports Finance.
Subprime borrowers account for 70% of the company’s leasing portfolio, as MotoLease’s mentality is to help “even the most credit-challenged riders,” Ucer said. “As a result of nearly 95% approval rate, MotoLease dealers gain a huge competitive advantage in their market.”
Dealers have long been asking for a prime leasing option for consumers, particularly a company that will offer prime leases for all powersports vehicles. Freedom EuroCycle Las Vegas, for example, is “actively” seeking a prime leasing provider that serves the West Coast to meet increasing demand for consumers with 650 or higher Fico scores, John Hollywood, the dealership’s finance and business development manager, told Powersports Finance back in July.
Even though the company decided to expand its credit bucket into the upper tiers, MotoLease will still place its emphasis on subprime lending. “We are always dedicated to our subprime borrowers; in the meantime, we want to attract more prime and near-prime borrowers in our business,” Ucer said.
Separately, MotoLease is actively looking to partner with a few OEMs in the future, he said. “I have been thinking about it for a while,” Ucer said. “It is going to happen in a few years, but so far I don’t have any details yet.”
Founded in 2010, MotoLease continues to witness portfolio growth for the seventh year in a row, according to Ucer. “We finance for all brands and all types of bikes — whether they are new or used,” he said. Currently, the Los Angeles-based company makes leases for 1,000 dealers across 31 states and aims to expand its dealer network to at least another seven states by the end of 2017.
“Most of our dealers are based in Florida, Texas, Georgia, and California,” Ucer said. “We would love to include more dealers in the northeast.”
For more on industry trends and growth opportunities, attend the 3rd annual PowerSports Finance 2017, Oct. 24-25 at the Wynn Las Vegas. To learn more about this year’s event, visit the event homepage here, or to register click here.