Yamaha Motor Finance Corp. will leverage its credit card program to move into the direct lending space going into 2017, said Executive Vice President and Chief Operating Officer Jeff Young.
The card program, which launched on Nov. 1, allows the captive to form direct relationships with customers, Young told Powersports Finance. In the past, Yamaha buyers were actually customers of the bank or a revolving credit provider, such as Capital One Financial Corp.
“While we would, on occasion, partner with those lenders on certain customer relationship marketing programs, they were always that: partnered programs,” he said. “We now have much greater flexibility given that the relationship is truly a Yamaha relationship.”
Most captives, particularly those that don’t offer credit cards, are indirect lenders, Young said. “So what we are excited about with the card is being able to move closer to the consumer.”
For example, the 2017 Supercross season begins in January, and Yamaha Motor Corp. and its captive are sponsoring that series, Young explained. “We are going to be offering the card to our motorsports enthusiasts that attend these Supercross events as a way of leveraging this direct lending arm,” he added.