Polaris Industries Inc. reported a 300 basis point year over year rise in its credit approval rate to 65% in the third quarter, despite a 100-basis-point drop in its retail finance penetration rate to 30%, according to the company’s earnings last week.
Polaris currently has financial partnerships with FreedomRoad Financial (for Performance Finance), Sheffield Financial, and Synchrony Financial.
Income from financial services dropped 6% year over year to $19 million for the quarter. However, the OEM’s projections for income from financial services for the year has improved.
“Income from financial services is now expected to be down about 5% for the year,” Mike Speetzen, Polaris’ executive vice president of finance and chief financial officer, said on the earnings call. In the first and second quarters, the company predicted income to decline about 10% in 2017 due to lower dealer inventory levels.
