Localize to Capitalize: Grow Your Specialty Vehicle Lending Portfolios in Your Region

Your geography plays a key role in the loans you offer and the members you support. That’s why expanding into specialty vehicle lending could open doors for your credit union when you’re looking to diversify your portfolio and strengthen community ties. The path to success doesn’t stop at offering low loan rates or flexible terms; you also need to understand your market’s unique preferences and vehicle demands. 

From RVs and all-terrain vehicles (ATVs) to boats and tractors, each vehicle type appeals to distinct buyer profiles and varies in popularity depending on your location. Here are some actionable steps to capitalize on your regional specialty markets.

Research Your Region’s Recreational Trends 

Consider the top recreational behaviors in your area. Do people living in your region love camping or taking road trips, spending days on the water, or cruising trails and highways? Odds are the members you serve embrace those activities and turn to you for a first-time purchase or an upgrade. Analyze local sales data for RVs, boats, ATVs, motorcycles, and powersport vehicles. Use dealership feedback, local registrations, and industry reports to pinpoint popular vehicle types and price ranges in your region. 

Here are some examples of regional trends to look out for: 

• Florida and Coastal Regions: According to the National Marine Manufacturers Association, Florida and Texas lead the U.S. in boat sales. The high volume of sales in these coastal regions shows strong demand for marine financing. 

• Pacific Region: The Pacific coast states boast 25% of all RV sales, as the region’s natural scenery supports frequent camping and exploration. California itself also sees the highest number of motorbike registrations, thanks to perfect year-round riding weather and iconic scenic routes like the Pacific Coast Highway.  

• Southern Region: Currently, the South experiences the highest ATV sales and usage. With vast and accessible areas of rural land, forests, mud trails, and farms in the South are perfect for ATV use. 
  

Use Automated Lending Platforms

To improve efficiency and avoid simple errors, automate traditional manual lending with tools that simplify loan documentation and submissions. By streamlining the process, your credit union can expedite lending and provide a consistent, user-friendly experience for both your members and partner dealerships. 

Customize Loan Products by Vehicle Type and Market Segment

Tailor your lending packages based on price, usage, and buyer demographics. For example, you could offer flexible terms for first-time motorcycle buyers in urban areas or competitive rates for high-value boats in coastal markets. Fund comfortably and confidently by setting price limitations, credit score minimums, and other requirements to avoid overextending your resources. 

Leverage Your Regional Network

Find dealers within your regional network who you can trust to compile and submit high-quality loans within your guidelines. Extend your regional strategy by highlighting your specialized financing offers through digital advertising. Perhaps most importantly to your in-market members, share the real experiences you’ve previously funded. 

The specialty vehicle market offers significant growth opportunities, especially when you’re able to leverage your regional knowledge. By tailoring your lending products to your members’ interests, you’ll be ready to make the most of new opportunities. With the right strategy, you’re not just financing vehicles, you’re powering lifestyles.