Subprime Consumers in the Market for Powersports

canstockphoto27008858Subprime customers have the “appetite” for the latest Harley or Kawasaki, and lenders are beginning to see that, Scott Brackin, FactorTrust’s auto finance segment leader, told Auto Finance News.

As a provider of alternative data to the subprime auto finance industry, FactorTrust has seen an increased interest in its data on “underbanked” consumers, from prime-risk powersports lenders considering the subprime powersports market, Brackin said. “It [powersports] is an asset that depends on disposable income, true, but I think it really goes past that,” he said. “People will buy what they want to buy; a low credit score doesn’t mean they [subprime consumers] don’t want to have the latest Harley.”

Separately, dealer performance data released last week by Commercial Distribution Finance, a division of GE Capital, showed the powersports industry overall is robust and continues to grow. According to CDF, powersports dealer inventory financing is up 12% through June, meaning that dealers are ordering more product to meet consumer demand.

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