Synchrony Partners with BRP to Provide Retail Financing Options in the United States

Rhea-AI Summary

Synchrony partners with BRP US Inc. to offer flexible financing on powersports products, including snowmobiles, watercraft, and off-road vehicles. This partnership aims to enhance consumer access to BRP products through secured installment loan options.

Insights

Financial Analyst

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.

Market Research Analyst

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.

Consumer Behavior Expert

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

STAMFORD, Conn., April 8, 2024 /PRNewswire/ -- Synchrony (NYSE: SYF), a premier consumer financial services company, today announced a new partnership with BRP US Inc., a global leader in powersports and marine products. Synchrony will now provide BRP's U.S. dealers with installment financing options on its line of 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."

All U.S. BRP dealers will have access to Synchrony's fast credit decisioning, dealer and customer support, rapid response to financing questions, loan contract preparation, and expedited loan funding processes as part of Synchrony's Business Center.

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, Manitou pontoons and Rotax marine propulsion systems as well as Rotax engines for karts and recreational aircraft, BRP unlocks exhilarating adventures and provides access to experiences across different playgrounds. The Company completes its lines of products with a dedicated parts, accessories and apparel portfolio to fully optimize the riding experience. Committed to growing responsibly, BRP is developing electric models for its existing product lines and exploring new low voltage and human assisted product categories. Headquartered in Quebec, Canada, BRP has annual sales of CA$10.4 billion from over 130 countries and a global workforce of close to 20,000 driven, resourceful people. www.brp.com @BRPNews

Ski-Doo, Lynx, Sea-Doo, Can-Am, Rotax, Alumacraft, Manitou, Quintrex, and the BRP logo are trademarks of Bombardier Recreational Products Inc. or its affiliates. All other trademarks are the property of their respective owners.

Media Contacts:

Lauren Devilbiss
Synchrony
lauren.devilbiss@syf.com

Emilie Proulx
BRP
media@brp.com 

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SOURCE Synchrony

FAQ

What is the partnership announcement between Synchrony and BRP US Inc. about?

The partnership aims to provide installment financing options on BRP's powersports products through Synchrony.

What types of products are included in the financing options?

Products such as Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, and Can-Am vehicles are available for financing.

How long are the flexible financing terms provided by Synchrony?

Synchrony offers flexible financing terms up to 84 months for BRP's U.S. dealers.

Who commented on the partnership from Synchrony's side?

Darrell Owens, Senior Vice President at Synchrony, expressed the company's commitment to enhancing consumer access to BRP products.

What is the goal of BRP in expanding consumer financing options?

BRP aims to provide more ways for consumers to own their products and create memorable outdoor experiences through the partnership with Synchrony.