MotoLease LLC will introduce a new point-system program in the first quarter of 2018 for lower-credit-tier borrowers that will act “similar to credit card points,” Managing Partner Emre Ucer told Powersports Finance.
By paying on time, lower-credit-quality customers can reduce their overall payments. “Each payment will earn a customer 100 points,” Ucer said. Most lessees will be eligible for lowers payments 12-18 months, depending on the number of on-time payments, he added.
Once a certain number of points are accrued, a customer’s payment can be reduced to the equivalent of what someone in the tier above would pay, Ucer said. MotoLease has six credit tiers, so for example, someone in Tier 6 could be eligible for the equivalent payment of someone in Tier 5 and later on Tier 4, etc. The program allows customers to maintain the same repayment term, and as a lease, does not affect an APR or interest rate, Ucer said.
“It will also help them in their next vehicle lease by [making them eligible] for lower up-front costs and lower monthly payments,” he added.
MotoLease CEO Maurice Salter will sit down for a fireside chat at PowerSports Finance 2017 tomorrow. 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.