Nextep Funding Scraps Lease-to-Own Product

Nextep Funding LLC altered its website on Friday to reflect a change in its lease offerings, to closed-end consumer leases from the previously offered lease-to-own option.

“Nextep Funding provides a completely unique closed-end consumer lease platform that provides customers and retailers the freedom they want with the flexibility they deserve in a financing company,” the website states. Formerly, the website listed “lease-to-own” as its platform.

A closed-end lease, commonly known as a walkaway lease, is an agreement that puts no obligation on the lessee to purchase the vehicle at the end of the term.

The consumer demand for powersports vehicles $5,000 and under “is very much wide open” and “growing like wildfire,” Kamron Davis, Nextep’s vice president of sales, told Powersports Finance last year.

Potomac Falls, Va.-based Nextep Funding — a full-spectrum lender, with subprime consumers comprising most of its portfolio — offers lease terms from 12 to 24 months in all 50 states. The company offers leases options between $500 and $5,000.

The company finances all powersports vehicles, but sees the strongest demand for scooters, ATVs, off-road vehicles, dirt bikes, and pre-owned motorcycles, Davis previously said.

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