FactorTrust, an Atlanta-based provider of alternative data in auto finance, is considering entering the powersports finance space, according to Chief Executive Greg Rable. “It’s definitely on our road map for 2016,” Rable told AFN. “It seemed like the industry was open to data, open to scores, and nobody was really serving it well.”
The company began digging into powersports early this year to learn the size of the industry and the opportunity for growth. “That’s kind of how we find new markets,” Rable said. “We look and think, ‘That’s interesting,’ but then you look at the volume and think, ‘That’s not very big.’ But we were kind of surprised at what the [powersports] volume looked like.”
About 10 million powersports vehicles are in use, with about 800,000 new and more than 2 million used vehicles sold per year, according to National Powersport Auctions data. The Motorcycle Industry Council’s most recent biannual study also found that 33% of vehicle owners surveyed said they financed at least a portion of their vehicle in 2014, up from 32% in 2012.
Rable said it’s too early to share FactorTrust’s specific plans for powersports, but noted the company has “three or four good-sized opportunities in our pipeline,” and expects to have a better understanding of the industry by the second quarter of 2016.