Synchrony Partners with BRP to Provide Retail Financing Options in the United States
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The partnership between Synchrony and BRP US Inc. represents a strategic move in the consumer financial services industry, potentially impacting consumer spending patterns within the powersports sector. By providing installment financing, Synchrony is tapping into the consumer's desire for more manageable payment plans, which can stimulate sales for BRP's dealers. The introduction of up to 84-month financing terms is a notable extension, as it suggests confidence in the long-term value of BRP's products and the creditworthiness of its consumer base.
From an investor's perspective, this partnership could signal Synchrony's commitment to diversifying its portfolio and could have implications for its revenue streams. The flexibility of the financing options might attract a broader customer base, potentially increasing market share in the powersports financing segment. However, the extended terms also imply a longer risk exposure, which investors should monitor in relation to Synchrony's credit risk management capabilities and the overall economic conditions that could affect consumer loan repayment.
Within the powersports market, consumer financing options are a critical factor in purchasing decisions. The collaboration between Synchrony and BRP is poised to enhance the purchasing experience by simplifying the financing process. This could lead to increased customer satisfaction and loyalty, as financing is a key competitive differentiator in this industry. The online and in-dealership application process offered by Synchrony addresses the modern consumer's need for convenience and efficiency.
It is important to note that the powersports industry is highly seasonal and sensitive to economic cycles. The availability of flexible financing might mitigate some of these fluctuations by enabling consumers to make purchases even during off-peak seasons. However, dealers and manufacturers must be cautious of over-reliance on financing to drive sales, as this could lead to an unsustainable increase in consumer debt levels, potentially resulting in higher default rates.
Financing options are a significant factor in the consumer decision-making process, especially for high-value items like powersports products. The partnership between Synchrony and BRP addresses a fundamental aspect of consumer behavior: the preference for financial flexibility. By providing secured installment loans with terms up to 84 months, Synchrony is not only facilitating immediate purchases but also aligning with consumer trends towards longer-term financial planning.
The impact of such financing options on consumer behavior will likely be positive in the short term, as it lowers the barriers to entry for new customers. However, the long-term effects require careful observation, as overextension of credit can lead to financial stress for consumers. The powersports industry must balance the drive for sales with responsible lending practices to maintain a healthy market environment.
Synchrony to Offer Consumers Flexible Financing on Powersports Products
Synchrony will allow BRP dealers to offer secured installment loan products, which includes an online or in-dealership application process, as well as flexible financing terms up to 84 months. As a result, BRP will further expand its consumers' ability to access their preferred products. Specific products available for financing include:
- Ski-Doo and Lynx snowmobiles
- Sea-Doo personal watercraft and pontoons
- Can-Am on and off-road vehicles
"Consumers nationwide enjoy BRP powersports products, and we hope to aid in maintaining their loyalty while attracting new buyers," said Darrell Owens, Senior Vice President, Synchrony. "This partnership will make it even easier for outdoor adventurers to follow their passions and purchase their preferred unit, whether it's Ski-Doo, Lynx, Sea-Doo or Can-Am products."
"Our goal is to continuously provide more ways for consumers to own BRP products and create unforgettable experiences in the great outdoors," said Sandy Scullion, President, Powersports and Marine, at BRP. "We are pleased to expand our consumers' retail financing options by welcoming Synchrony, who has a wide selection of proven financing options and a deep understanding of the powersports market."
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About Synchrony
Synchrony (NYSE: SYF) is a premier consumer financial services company delivering one of the industry's most complete digitally enabled product suites. Our experience, expertise, and scale encompass a broad spectrum of industries, including digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet, and more. We have an established and diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations, and healthcare service providers, which we refer to as our "partners." We connect our partners and consumers through our dynamic financial ecosystem and provide them with a diverse set of financing solutions and innovative digital capabilities to address their specific needs and deliver seamless, omnichannel experiences. We offer the right financing products to the right customers in their channel of choice. For more information, visit www.synchrony.com.
About BRP
BRP Inc. is a global leader in the world of powersports products, propulsion systems and boats built on over 80 years of ingenuity and intensive consumer focus. Through its portfolio of industry-leading and distinctive brands featuring Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and pontoons, Can-Am on and off-road vehicles, Alumacraft and Quintrex boats,
Ski-Doo, Lynx, Sea-Doo, Can-Am, Rotax, Alumacraft,
Media Contacts:
Lauren Devilbiss
Synchrony
lauren.devilbiss@syf.com
Emilie Proulx
BRP
media@brp.com
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SOURCE Synchrony
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