Roadrunner Financial has inked a financing agreement with Kawasaki Motors that will allow the lender to expand its loan offerings to near-prime consumers at the OEM’s franchise dealerships, the company announced this week.
The agreement, exclusive to consumers with Fico scores between 550 and 660, will be available for Kawasaki dealers March 1, Jon Vestal, Roadrunner Financial’s vice president of sales, powersports and outdoor power equipment told Powersports Finance.
One of Roadrunner’s goals is to expand the powersports market and “make the pie bigger,” rather than simply carving out market share, Vestal previously told PSF. The new partnership with Kawasaki is an example of that mission, he said, adding that it “is about helping dealers sell and finance as many Kawasakis as possible. That’s our goal — to expand the powersports market to include as many customers as we can.”
While this is a new partnership, Roadrunner has already worked with the handful of Kawasaki dealers who have participated in another of the lender’s programs, such as the used-vehicle program, Vestal said.
“If dealers are not already signed up with us, we will be working with them over the next month as the partnership comes into full swing,” Vestal said, but did not specify how many dealerships would be added to Roadrunner’s network. Kawasaki has a network of 1,100 independent retailers, according to a company release.
Roadrunner Financial has been in growth mode as of late. The New York-based lender added 100 employees to its staff in 2019, mostly in servicing operations and technology divisions, bringing its total number of employees to 175. The financier also began piloting an incentive program — Roadrunner Power — to “deepen relationships with dealers who do a lot of volume with us,” Director of Marketing Casey Casterline previously told PSF. On top of that, it also issued a $210.9 million securitization in November 2019, and has plans for two more issuances in 2020.