Dover Federal Credit Union intends to grow its motorcycle lending portfolio and has signed on three Harley-Davidson dealerships to facilitate this goal, Consumer Lending Manager Brad Fielder told Powersports Finance.
The Dover, Del.-based credit union provides loans for automobiles, motorcycles, RVs, and boats, but is seeking to increase the motorcycle side of its lending portfolio in order to become “more competitive in the space,” Fielder said.
The credit union hopes to add more powersports dealer clients by emphasizing its focus on creating strong relationships, in addition to competitive credit rates.
“Everybody wants business, so our biggest thing is, not only remaining competitive with our rates but making sure relationships are strong,” Fielder said. “Without good relationships, you can have the best credit rates in the world, but no one is going to want to use you.”
While Dover is looking to increase the motorcycle portfolio, the credit union is aware that motorcycles tend to be different from an underwriting perspective because they are “riskier products,” he added. For example, motorcycles can be more difficult to recall than an automobile. This risk can be mitigated through management of the risk portfolio and lending to consumers with higher credit scores, he said.
Dover Federal Credit Union offers motorcycle loan terms up to 84 months with APR as low as 4%. The credit union works with a total of 48 dealerships and opened a new branch in Middletown, Del. in summer 2017.