Pictured, from left: Chris Clovis, owner and operator, Freedom EuroCycle; Kevin Lackey, president and CEO, Freedom Powersports; and Bradley Van Horn, owner, Buy Your Motorcycle, discuss F&I in a panel discussion at PowerSports Finance 2017.
LAS VEGAS — More near-prime financing was provided to consumers than any other credit tier between third quarter 2016 and first quarter 2017, according to data from TransUnion.
However, that hasn’t stopped dealers from calling for more financing options for those consumers.
“There’s this no-man’s land, which is that 550 to 640 Fico,” Chris Clovis, owner and operator of Freedom EuroCycle, said at PowerSports Finance 2017.
“This is our customer, this is the working-class American who wants to buy a powersports vehicle, and we don’t have options for him.” This sentiment was echoed among all the dealers on the panel, despite TransUnion data showing that 26% of all originations are made in that near-prime range — 6 percentage points higher than in the auto sector.
However, Bradley Van Horn, owner of Buy Your Motorcycle, said the issue is a lack of flexible options for these consumers. “If you’re a 620 [Fico], no one wants to touch you,” he said. “If you’re a 635, there are two to three options; and if you’re a 650, there are 70 options.”