ARLINGTON, Texas — High dealer fees and interest rates have pushed many buy-here, pay-here powersports dealers to fund more customers in-house, including Buy Your Motorcycle.
Buy Your Motorcycle has its sights set more on in-house financing, and less on eBay or its third-party lenders, Owner Brad Van Horn told Powersports Finance in an exclusive interview at the Arlington, Texas-based dealership. The dealership’s top priority is “putting more notes on the streets” through its in-house financier, CAR Financial, he added.
While the dealership’s third-party lenders are a great source of financing, “with the discount fees, it doesn’t make sense to push on a lender when I can pay [CAR Financial] to get my notes received,” Van Horn added.
The dealership has 14 financial partners in addition to CAR Financial Services. Buy Your Motorcycle launched CAR due to a “lack of adequate programs” from current subprime lenders in the industry, Van Horn previously said. The industry needs “more subprime lending with lower fees,” because many subprime lenders have thousand-dollar fees, he added.
Buy Your Motorcycle also utilizes eBay to track in more leads, however, “it’s just another advertising portal,” Van Horn said. When a consumer buys through eBay, they only go through with the sale about 20% of the time, he added.
eBay’s platform for buying and selling vehicles — ebay Motors — which currently hosts more than 30,000 automotive dealers, also provides a financing channel for buyers, dubbed the Financing Center. Through the center, buyers can access the “top national lenders” and obtain loans for their purchase.
Even if someone hits the “buy now” option, it’s not a secured sale until the consumer is approved, actually has the funds, or you have talked to the buyer personally, Van Horn said, because most buyers come up with excuses for reasons not to go through with the purchase. “eBay is just another avenue for advertising, more than it is a way to transact business,” he added.