Beginning Jan. 1, banking giant HSBC will stop underwriting Suzuki’s retail finance loans. See our report here.
As far as I know, this could be good or bad for Suzuki dealers. We’ll have to see what bank or banks take over the revolving and installment accounts. Who knows, perhaps standards will loosen and rates fall.
No word on why the decision was made, or on who played the bigger part in making it. It does seem HSBC wasn’t happy with the amount of revolving credit being issued to Suzuki, Kawasaki, Polaris and Yamaha customers. From my coverage of the Kawasaki dealer meeting this past summer: “An HSBC rep told Dealernews that about four times more customers opt for revolving credit than for an installment loan. HSBC would like to see a shift toward installment loans, which often are more customer-friendly in the long run.”
HSBC bought Illinois-based lender Household International in 2005. Household has been in the powersports industry for more than 30 years.