New entrant powersports lenders are spurring Westlake Financial Services to expand this year, but the company’s plans for 2017 will not include buying deeper in the credit band, said David Goff, assistant vice president of marketing.
“We think right now is the right time to expand,” Goff told Powersports Finance. “There appears to be more companies trying to enter the market, especially in the nearprime and subprime space.” Two examples are Roadrunner Financial and Speed Leasing LLC, he added.
“You are seeing more and more lenders, and with Westlake we still see it as opportunity to grow, but we have to grow right,” Goff said. “We have to buy the right deals at the right structures, and it makes sense for both the dealers and us.”
Los Angeles-based Westlake underwrites loans for 1,000 dealers, and has plans to add more to the network this year. Goff declined to offer a specific goal.
In the meantime, Westlake is monitoring its powersports program, to keep an eye on rising losses and delinquencies.
“We want to buy more deals, but on that same note, once we do buy those deals, how do we improve the back-end side of servicing? How do we improve our processes to where we can make sure that losses and delinquencies are maintained?” Goff said.