ORLANDO — Yamaha Motor Finance Corp. is slated to launch a credit card program nationwide to all authorized Yamaha dealers on Nov. 1, Jeff Young, the captive’s executive vice president and chief operating officer, told dealer partners at the AIMExpo in Orlando yesterday.
The program was piloted to select dealers in California, Florida, and Illinois on Sept. 22, Young said, and has been rolling out consistently since. Currently, the program is available to 100 authorized Yamaha dealers in 17 states, as of Oct. 6, Young said.
Previously, Yamaha’s revolving credit product was provided by Capital One Financial Corp. However, in August 2015, Capital One told Yamaha and its other OEM partners — Kawasaki Motors Corp., Polaris Industries Inc., and Bombardier Recreational Products Inc. — that it would gradually reduce its investment in powersports financing, letting its revolving credit arrangements gradually expire through the first quarter of this year.
Yamaha’s new card program will offer a “low introductory payment, simple application and contract process, no minimum amount financed, no merchant card processing fees, and an open credit line for repeat purchases,” Young explained.
Yamaha Motor Corp. USA revved the engine of its captive, Yamaha Motor Finance Corp., when it piloted operations with a small group of California dealers in March 2015. Yamaha Motor Finance makes loans for about 1,000 dealers, as of March 2016.
The Cypress, Calif.-based captive’s application volume is up 30% year over year for July and September, from the time last year, Young told the crowd, and approval rates have been consistent at about 35% to 40%.
Yamaha Motor Finance, which operates in the nonprime space, also piloted a pre-owned vehicle program at the end of the third quarter in 2015, Vijay Patil, chief risk and strategy officer, told Powersports Finance in March.
Yamaha’s nonprime loan originations “started off slow,” Patil previously 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.