The Hanover, N.J.-based dealership signed on the two lenders early this month to help expand its customer base through multiple finance options. Already, the dealership has sent the pair “a couple” applications, Cooper said.
The dealership’s inventory consists of brands such as Yamaha, Honda, and KTM, and thus works with captives such as Yamaha Motor Finance Corp. USA and American Honda Motor Finance. Roadrunner is a full-spectrum lender, while American Cycle Finance specializes in subprime. To start, the dealership will send turndowns from its captives to the new lenders. Ultimately, though, the goal is to figure out each lender’s criteria, so it can send applications directly to the independent lenders.
“We are trying to determine how they buy deals and how they do approvals,” Cooper said. “Some lenders like to see customer equity in the deal. Other lenders are based on more traditional scoring parameters for whether they buy the customer or not, so I need to learn how these new lenders evaluate deals.”
While lenders provide rate sheets with general lending parameters, the best way to learn each lender’s program is to send applications and see what they do, Cooper added.
Discussions to sign with American Cycle Finance began before Cooper joined the store in September. The dealership was familiar with Roadrunner through a partnership the lender had with Rider Insurance, which provides powersports insurance in Delaware, Indiana, Maryland, Michigan, New Jersey, Ohio, Pennsylvania, and Virginia.