Onyx Moto is on the lookout for credit union partners to bolster approval rates and give the dealership “more control” in the consumer finance process, Owner Kenny Chen told Powersports Finance.
The San Diego dealership offers a variety of sportbike brands, including BMW, Suzuki, and Kawasaki. Onyx works with a few lenders including MotoLease LLC, but is scouting credit union partners, Chen said.
The dealership lacks any credit union partners, leaving Onyx’s customers to visit and work with credit unions on their own — rather than through the dealership F&I office.
“We really have no good contacts with [credit unions], we are not involved in the process,” he added.
Notably, credit unions have been able to capture marketshare from traditional lenders in the space. While there is no data to track the breakdown of marketshare in powersports finance, the anecdotal trend follows a similar path as auto finance. Credit unions have grown their share of total auto financing by 140 basis points year over year to 21%, according to Experian’s third-quarter Automotive Finance Report.
Meanwhile, banks in the auto lending space control 32.9% of total financing, down from a 35.1% marketshare during the same period the year prior.
This article originally appeared in Powersports Finance Update, a monthly newsletter. To view previous issues, click here.