LAS VEGAS — The powersports finance industry is finally experiencing a bit of advancement, following years of remaining “stagnant,” Chris Clovis, owner and operator at Freedom EuroCycle Las Vegas told attendees at PowerSports Finance 2016 on Wednesday.
“We are, essentially, dealing with the same prime lenders and same subprime lenders,” Clovis said. However, the industry is beginning to turn, as “we are starting to see some signs of new players in the space,” he added.
RideNow Powersports, for example, has seen “some expansion” this year, with regards to how many lenders the dealership works with, Regional General Manager Chris Rice told attendees. More specifically, the dealership is seeing “an uptick in the loans we are writing through [lenders] outside of manufacturer financing,” particularly those who offer financing across the credit spectrum.
“Hopefully within our space, technology will follow,” Rice said. “The paper is so labor-intensive through a lot of the lenders that we work with,” including the access to submitted credit applications.
Additionally, the industry is still anticipating a replacement for Capital One Financial Corp. The revolving credit lender announced its gradual exit from the powersports space in August 2015, causing “some substantial changes” for many dealerships in 2016, including RideNow Powersports, Rice added. “We are learning how to write more and more installment loans,” in order to adjust, Rice said.
“For better or worse, if you had asked me four years ago who my subprime and prime lender was, I would give you the same two answers today,” Clovis added. “I think that is probably not good for the industry, but I think we should probably see a little bit more evolution [moving forward.]”