5 Best Practices for Subprime Powersports Lending
COLUMBUS, Ohio — As more subprime players have entered the field, competition is revving up. But increased competition doesn’t mean lenders will need to layer risk in order to attract more business.
While MotoLease LLC is targeting a higher concentration in the prime and near-prime markets, subprime is still the leasing provider’s sweet spot, MotoLease LLC Managing Partner Emre Ucer told Powersports Finance. Subprime borrowers account for 70% of MotoLease’s leasing portfolio, as the lender’s mentality is to help “even the most credit-challenged riders,” Ucer previously said. “As a result of nearly 95% approval rate, MotoLease dealers gain a huge competitive advantage in their market.”
Ucer will expand upon this subject during a panel entitled “Keys to Successful Subprime Lending” at the upcoming PowerSports Finance 2017 conference, which is slated for Oct. 24-25 at the Wynn Las Vegas. During the session, Ucer and his fellow panelists will discuss subprime risk, underwriting best practices, and how to avoid seasonal repossession challenges.
Other sessions include Finding Loan Growth Amid Increasing Competition, F&I Dos and Don’ts, and Regulatory Compliance Update. The full agenda can be viewed here. To learn more — or to register — for this year’s event, visit the PowerSports Finance 2017 homepage here.
During AIMExpo 2017, Powersports Finance spoke with Ucer, who offered best practices for subprime underwriting and for handling subprime borrowers. Here are 5 tips for successful subprime lending:
