Powersports vehicle originations should increase — and possibly significantly — in 2015, new research from Auto Finance New shows.
According to an Auto Finance News survey, 59% of respondents expect powersports originations to climb up this year. In contrast, just 9% foresee a decline in powersports originations this year. Another 18% predicted flat originations for the powersports sector.
Interestingly, a large percentage — about 14% — were “not sure” which direction powersports originations would cut this year, a sign of the degree of uncertainty in this niche, dynamic market segment.
A notable portion of auto finance companies do not participate in the powersports finance segment today. The survey hinted at why. When asked what it would take the respondent to get involved in the powersports finance business, one answered “data on performance and needs.” The implication here, again, is that uncertainty and lack of information is preventing powersports finance from reaching its full originations performance.
That point was echoed in another question. The survey asked for the main challenges to powersports finance. Here are some of the factors we heard from respondents:
- Fragmented dealer network
- [Motorcycles are] small and easy to hide
- Titles
- Liens
- UCC1s
Auto Finance News‘s powersports finance survey drew 59 responses.
Auto Finance News will present its inaugural PowersSports Finance 2015 on Oct. 21 in Las Vegas. Click here for details.
