Subprime 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.