Yamaha Motor Finance Corp. USA is taking its floorplan financing in-house, gradually phasing out its 30-year partnership with Wells Fargo Commercial Distribution Finance, Powersports Finance has learned.
“I’m excited to share the next step in our evolution as your full-service finance company,” Jeff Young, the captive’s executive vice president and chief operating officer, said today in a note to Yamaha dealers. “Today we move a step closer to our vision as we officially announce our plans to launch an all-new wholesale finance program.”
The new program will be managed and staffed by Yamaha Finance, Young said in the note. “By taking this step, we will be able to offer you a more complete set of competitive wholesale financing solutions that will help you grow your business profitably.”
The transition to the new captive from Wells Fargo will be gradual and “take us late into next year,” Young said. “We are informing you now as there are several long-lead transition items that will require your involvement. We will communicate these later this year. Until then, operations will continue to be managed through Wells Fargo — business as usual.”
Wells Fargo CDF echoed Yamaha’s comments about their successful, 30-year partnership, and its plans to make the transition as efficient as possible for their shared customer base.
“Yamaha has made the decision to transfer the servicing of its wholesale financing portfolio to Yamaha Financial Services late next year,” Wells Fargo CDF told Powersports Finance in a statement. “CDF and Yamaha will work closely together to ensure a smooth transition for our collective customer base. Until the transition, it is business as usual.”
Dealers have long praised Yamaha Finance for its suite of finance options. Yamaha Finance is “clearly cornering the market,” a finance manager at a Florida-based Yamaha dealership previously told Powersports Finance. “They are making it easier to get more people [approved] by offering the whole solution,” he added.
Parent Yamaha Motor Corp. USA now offers four core retail/wholesale financing options: prime financing through its partnership with Synchrony Financial; nonprime options through its Yamaha Finance installment program; revolving credit through its Yamaha Credit Card; and now, Yamaha will offer in-house wholesale financing through its new captive.
Both Yamaha Finance and Wells Fargo CDF are participating in this year’s PowerSports Finance 2017 conference held Oct. 24-25 at the Wynn Las Vegas. Young’s colleague — Lyndon Elam, vice president of retail sales, marketing, and operations at Yamaha Finance — will speak on a panel entitled “Finding Loan Growth Amid Increasing Competition.”