Speed Leasing LLC is sketching plans for the expansion of its leasing program — which in the long-term, could include traditional loan options — in an effort to compete against other players in the space.
“When I looked at marketplace over the past couple of years, I had been following others in the space, and I saw there are limited offerings,” Partner Hasham Malik told Powersports Finance. “Especially when you start getting into vehicles that cost more than $7,000 or $8,000, then it becomes a more difficult prospect for individuals to get financed.”
To that end, Speed Leasing might consider offering traditional loan options in the future, Malik said. “There’s certainly possibilities down the road — maybe two or three years down the road — that we might establish a lending program, as we get this built up,” he said. “I have not ruled that out, but initially, leasing seems to be the appropriate avenue by which to present a new financing option in the powersports market,” because there isn’t a lot of competition, so the market is wider.
However, of the competitors that are in the space, Speed Leasing is “thankful” that they have opened up the market, Malik said. “I think from the perspective of the larger dealers, and even smaller dealers that have been around for a while, they have gotten the taste that yes, there is another product available — as opposed to cars where you can get a lease at every dealership, whether franchised or independent.”
Speed Leasing, funded by an undisclosed Miami-based private equity firm, plans to have its dealer agreements in place by the end of this month and start underwriting leases by April 1.
The startup also opened up its dealer portal to beta testing by a select group of dealers, as of today, Malik said. “A full version for general consumption will follow after we incorporate comments from our test group — probably closer to the end of the month,” he added.
Pompano Beach, Fla.-based Speed Leasing finances Harley-Davidson motorcycles, 10 years old or newer, for consumers with Ficos as low as a 500.