Yamaha Motor Finance Corp. USA will offer wholesale financing for used vehicles through its new captive come December, President Jeff Young told Powersports Finance.
“Oftentimes today, [Yamaha] dealers will use their own working capital, i.e., pay for [used inventory] with their own cash,” Young said last month. “This way, we will provide many more Yamaha dealers liquidity to support their important used-bike sales.”
The used finance floorplan program will be a “day-one product,” Young said, meaning it will be made available with the new captive. The dealer experience is a “strategic part” of Yamaha’s product offering, Young said.
Yamaha launched its own finance products — including the wholesale captive — because it wants to “own that strategic asset and product; that’s been true about everything that we have done up until now,” he added.
Young distributed a note to dealers in September 2017 informing of the company’s decision to take floorplan financing operations in-house.
Yamaha Motor Finance — founded in 2015 — is the captive finance arm of Yamaha Motor Corp. The captive provides installment loans, as well as revolving credit through the Yamaha Credit Card, for about 1,100 dealers nationwide.
Yamaha Motor Corp.’s U.S. motorcycle sales dropped 5.7% year over year, to $489.6 million, in 2017, according to the OEM’s earnings report. Meanwhile, global net sales across all markets climbed 11% to $15.5 billion.
This article originally appeared in the monthly Powersports Finance Update newsletter. To view previous issues, click here.