Roadrunner Financial is slated to launch a used-vehicle financing program by next week, thanks to “tremendous” demand from dealers and consumers, Chief Executive Jason Guss told Powersports Finance.
Roadrunner declined to offer specifics on the program. “We are still finalizing the program, as of right now, there aren’t any hard limitations [on the age of the vehicle],” he said.
New York.-based Roadrunner Financial is a subsidiary of lender aggregator Octane Lending Inc. The near-prime lender currently makes loans for consumers with Fico scores as low as a 580, works with 15 manufacturers, and operates in 42 states. Loan terms range from 36 to 72 months.
Roadrunner isn’t the only lender interested in the used-vehicle space. Yamaha Motor Finance Corp. USA extended its used-vehicle credit card pilot program beyond its initial trial-end period of March 31, Vijay Patil, the captive’s chief risk and strategy officer, told Powersports Finance. The program was launched in February to finance nearly all powersports brands and used vehicles up to seven years old.
“It’s a legitimate need that the dealers have, in terms of finding a financing source for their used products,” Patil said. “As a captive lender, if you can support dealers with more financing options, you can build that relationship stronger [rather] than just building a relationship with them on new-vehicle financing. We truly view dealers as our partners, and if they express used as a financing need, we will try to see if we can help them out with it.”
Other players, such as Westlake Financial Services, also continue to push into used financing. “There’s definitely a need in that area, and the competition is low, so we feel we can fill a void,” Assistant Vice President of Marketing David Goff told Powersports Finance in March.
There is “lots of demand” for used bikes, Tom Collins, executive vice president and managing director of FreedomRoad Financial, told Powersports Finance. “We are a strong believer in used bikes being a very crucial component to having a healthy new bike marketplace,” he said. “We finance used bikes that our OEM partner dealers sell.”
FreedomRoad Financial’s volume is up overall for new and used, Collins said. “We are seeing good demand for new and used, that was all of last year and for 2017 we are up over last year as well.”