Octane and RideNow Partner to Launch RideNow Finance

Rhea-AI Summary

Octane and RideNow have partnered to launch RideNow Finance, a branded financing solution for RideNow's 56 retail stores. The partnership enables customers to finance over 18,000 new and pre-owned vehicles through RideNow's private label financing program. RumbleOn's dealerships can now leverage Octane's digital tools and full-spectrum financing experience under their brand, run branded promotions, and integrate financing messaging into marketing initiatives. The partnership represents the only private label branded financing for a dealership group in the nearly $30 billion powersports market. Loans will be originated through Octane's in-house lender, Roadrunner Financial.

Positive

• Partnership gives RideNow access to Octane's digital financing tools across 56 retail locations
• Expands financing options for over 18,000 new and pre-owned vehicles
• Exclusive private label financing partnership in the $30 billion powersports market
• Potential for increased sales through branded financing promotions and marketing initiatives

Negative

• None.

Insights

Financial Analyst

This strategic partnership represents a significant development for RumbleOn (RMBL), potentially enhancing its revenue streams and market position. The integration of RideNow Finance across 56 retail locations creates a new financial services revenue channel and strengthens customer relationships through branded financing solutions. Operating in the $30 billion powersports market, this exclusive private label financing arrangement could drive higher margins and customer retention.

The partnership with Octane, leveraging their established lending infrastructure through Roadrunner Financial, minimizes operational risks while maximizing potential returns. This move aligns with broader industry trends where retailers are increasingly seeking to capture financing margins traditionally left to third-party lenders. The full-spectrum lending approach should help RMBL capture a wider customer base across credit profiles, potentially driving higher sales conversion rates.

Market Research Analyst

This private label financing initiative positions RumbleOn strategically in the powersports retail space. By controlling the financing experience, RideNow can better influence the customer journey and capture valuable data on buying patterns and preferences. The ability to run branded financing promotions and integrate financing messaging into marketing initiatives should improve lead quality and conversion rates.

The partnership's exclusivity in the powersports sector provides a competitive advantage, particularly important given RideNow's position as North America's largest powersports retailer. The integration of digital tools and streamlined financing process addresses modern consumer expectations for seamless purchasing experiences, potentially increasing market share in the growing powersports segment.

Private Label Partnership Drives More Sales Through Fast, Easy Financing and Branded, Lifecycle Marketing

NEW YORK, Oct. 29, 2024 /PRNewswire/ -- Octane^® (Octane Lending, Inc.^®), the fintech revolutionizing the buying experience for major recreational purchases, and RideNow, a RumbleOn company and the largest powersports retailer in North America, announced a partnership to launch branded finance in RideNow's 56 retail stores under the RideNow Finance brand.

Effective immediately, RideNow Powersports customers can purchase over 18,000 new and pre-owned vehicles from a large selection of manufacturers using RideNow Finance. The new private label partnership allows RideNow Powersports dealerships to leverage Octane's digital tools and fast, easy, full-spectrum financing experience under its own name. Additionally, this partnership will help drive higher quality leads by giving RideNow Powersports dealerships the ability to run their own branded financing promotions, integrate branded financing messaging into their marketing initiatives, and reach customers throughout the lifecycle of their loan.

At the same time, RideNow Finance customers will benefit from broad credit coverage and a seamless, end-to-end financing experience that make it faster and easier to get outdoors on their dream vehicle.

This partnership is the only private label branded financing for a dealership group in the nearly $30 billion powersports market, which includes motorcycles, all-terrain vehicles (ATVs), utility vehicles (UTVs), and personal watercraft, and builds on the longstanding relationship between two leaders in the space; Octane has been one of RideNow's preferred lenders since 2017.

"Our dealerships are laser focused on providing a great buying experience for our customers," said RumbleOn CEO Mike Kennedy. "The opportunity to ease the financing process through RideNow Finance is exactly how we will take the experience to the next level."

"We believe that private label branded and captive financing are the future of retail financing in powersports, RV, and beyond, and we're excited to work with a leader in powersports - and a great partner - to bring this exciting new product to market," said Steven Fernald, President and Chief Financial Officer of Octane. "By giving dealerships innovative, digital tools and helping them harness the power of branded financing, we can help them drive more qualified applicants, and ultimately sell more units."

RideNow Finance loans will be originated through Octane's in-house lender, Roadrunner Financial^®, Inc., and serviced by Octane's award-winning loan servicer.

About Octane: 
Octane^® is revolutionizing recreational purchases by delivering a seamless, end-to-end digital buying experience. We connect people with their passions by combining cutting-edge technology and innovative risk strategies to make lifestyle purchases–like powersports vehicles, boats, RVs, and outdoor power equipment–fast, easy, and accessible.

Octane adds value throughout the customer journey: inspiring enthusiasts with the Octane Media™ editorial brands, including Cycle World^® and UTV Driver^®, instantly prequalifying consumers for financing online, routing customers to dealerships for an easy closing, and supporting customers throughout their loan with superior loan servicing.

Founded in 2014, we have more than 30 OEM and 4,000 dealer partners, and a team of over 500 in remote and hybrid roles. Visit www.octane.co.

Octane^® and Roadrunner Financial^® are registered service marks of Octane Lending, Inc.

Media Relations: Shannon O'Hara
Press@octane.co

Investor Relations: 
IR@octane.co 

About RideNow:
RideNow, a RumbleOn company, is the largest powersports dealership group in the United States with more than 56 powersports retailers across the country. The company typically inventories over 18,000 new and pre-owned motorcycles, ATVs, personal watercraft, and offers new vehicles from over 50 different brands.. Since 1983, the company has been leading the industry in bringing quality vehicles, expert service, and innovative ideas, like the RideNow Cash Offer, to adventurers everywhere. RideNow Powersports strives to give our customers a convenient, stress-free experience in sales, service, parts and merchandise.

About RumbleOn:
RumbleOn, Inc. (NASDAQ: RMBL), operates through two operating segments: our Powersports dealership group and Wholesale Express, LLC, an asset-light transportation services provider focused on the automotive industry. Our Powersports group is the largest powersports retail group in the United States (as measured by reported revenue, major unit sales and dealership locations), offering over 500 powersports franchises representing 50 different brands of products. Our Powersports group sells a wide selection of new and pre-owned products, including parts, apparel, accessories, finance & insurance products and services, and aftermarket products. We are the largest purchaser of pre-owned powersports vehicles in the United States and utilize RideNow's Cash Offer to acquire vehicles directly from consumers. To learn more, please visit us online at https://www.rumbleon.com.

For more information on RumbleOn, please visit rumbleon.com.

Investor Relations Contact:
investors@rumbleon.com

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SOURCE Octane

FAQ

What is the new financing partnership between Octane and RideNow (RMBL)?

Octane and RideNow have partnered to launch RideNow Finance, a private label financing solution that allows customers to purchase vehicles through RideNow's 56 retail stores using branded financing tools and services.

How many vehicles can be financed through RideNow Finance (RMBL)?

RideNow Finance offers financing options for over 18,000 new and pre-owned vehicles from various manufacturers.

What is the size of the powersports market that RideNow (RMBL) operates in?

RideNow operates in the powersports market, which is valued at nearly $30 billion and includes motorcycles, ATVs, UTVs, and personal watercraft.

Who will originate the loans for RideNow Finance (RMBL)?

The loans will be originated through Octane's in-house lender, Roadrunner Financial, and serviced by Octane's loan servicer.