With just over a year under its belt, Yamaha Motor Finance Corp. USA is now operating in all but one state, Vijay Patil, chief risk and strategy officer, told Powersports Finance. The company projects to be in all 50 states by the end of March.
The Cypress, Calif.-based captive, which operates in the nonprime space, also piloted a pre-owned vehicle program at the end of the third quarter in 2015, Patil added. “We expanded the pilot into a few states for the used program, and we are seeing pretty good results so far.”
With no set date in mind, Yamaha projects to move the used-vehicle pilot to the second phase — operating nationwide — based on various factors, including operational metrics, approval rates, and delinquencies. “If they are in line, we will move forward to second phase of the pilot,” Patil said. “So far, we’ve had a pretty good success rate.”
Yamaha Motor Corp. USA revved the engine of its new captive, Yamaha Motor Finance Corp., when it piloted operations with a small group of California dealers in March 2015. Yamaha is currently partnered with between 900 and 1,000 dealers, with plans to add more dealers to its roster throughout the year, according to Patil. Expansion of its dealer network “has been natural,” commensurate with the captive’s growth into nearly all 50 states, he added.
Yamaha’s nonprime loan originations “started off slow,” Patil said, but the company is doing well and is seeing a “pretty good pickup” since its launch last year. “We have done a great job in expanding our business in a very short period of time,” he added.