MotoLease LLC is chasing a partnership with a national training association to provide risk advising and motorcycle safety classes for younger buyers, Managing Partner Emre Ucer told Powersports Finance.
“That audience is one of our sweet spots, and a large part of our portfolio is thin-file,” Ucer said. “There is a lot of need for credit education and credit guidance. If you treat them right, guide them, and show them the importance of the credit in the long run, they perform very well.”
Some of that training includes getting borrowers to talk with risk advisors, and MotoLease may soon add a program that pays for riders to take motorcycle safety classes, if they complete a certain number of sessions.
It’s never good to put a consumer into a deal that goes beyond their means, David Goff, assistant vice president of marketing at Westlake Financial Services told Powersports Finance, but it’s especially bad for young riders who are more prone to get in an accident. The lender may ultimately have to collect on the asset, a difficult task if the bike is destroyed in an accident by an inexperienced rider or, more importantly, if the rider is hurt.
“Most of the [motorcycle] accidents happening with a new consumer who just recently acquired a bike, is because of a lack of experience, so we see that a lot of accidents happen in first six months,” Ucer said. “If they didn’t have an accident within the first six months, in our experience, the chances of them having an accident later is significantly lower.”
MotoLease is looking to partner with a national association, but the problem is that each training location is a separate entity and run separately — despite the fact that they are all part of one large network, Ucer explained. The association’s locations are spread out throughout the country, which makes it difficult for MotoLease to come up with and agreement that can be applied to all different locations, Ucer said. “But we are looking into how to make it work,” he added. “That’s the challenge we are facing now.”