The powersports industry is in “growth mode,” according to Donal Hummer Jr., president and chief executive of ThunderRoad Financial.
The Reno, Nev.-based lender’s portfolio alone has increased 279% to 5,717 loans as of January, up from 1,510 loans at the same time a year prior, according to a Morningstar report.
“The recession caused a lot of built-up demand in the 2008 to 2012 timeframe, so we are benefitting from people who held off buying or financing any powersports products, and I think this year we will see some good, strong growth,” Hummer told Powersports Finance. “I think the products available to consumers are better now than they have ever been in terms of performance and efficiency. Manufacturers are turning out some great products right now.”
ThunderRoad’s “prudent, but exponential growth” is also attributable to a strong underwriting staff, Hummer said. “We have arguably the strongest underwriting team out there,” he said. “They are knowledgeable about dealers and about what it takes to put together a good finance package, which enables a small guy like us to compete with multi-billion dollar companies.”
ThunderRoad Financial makes loans for more than 300 dealers in 30 states, and adds an average of 1 to 2 dealers to its network daily, according to Hummer. Approximately 20% of its overall portfolio are subprime or near prime consumers.