background

Dealers Turn to Full-Spectrum Lenders to Increase Used Sales Growth

Motorcycles may not always be viewed as a necessary purchase, but that doesn’t mean owning one comes cheap. A new motorcycle price can vary wildly depending on the make and category, but there are bikes that cost consumers $15,000 to $25,000. Alternatively, used motorcycles are a cheaper option, especially for consumers who may not have high enough credit to qualify for a new bike loan.

While the motorcycle market at large is down in the U.S., used bikes are seeing an uptick. Prime Motorcycles is an independent used-motorcycle dealership that sells brands that include Harley-Davidson, Kawasaki, Honda, Yamaha, and Suzuki. The dealer has been noticing increased activity in the used-category both within itself and at the franchised dealerships.

“I’ve seen it definitely in the franchise side,” Logan Riley, managing member of Prime Motorcycles told Powersports Finance. “A lot of new franchise dealers are carrying a larger used selection of motorcycles. For us, it’s always been great because it’s all we do, it’s easy to sell someone on a used motorcycle that looks like a new one, but is two or three thousand dollars cheaper.”

The Longwood, Fl.-based dealership has seen “good” NADAguides values on used bikes, but the dealer exercises caution when it comes to spotting trends in the used market.

“I have seen trends in the past where they fluctuate, which makes it difficult to finance certain vehicles,” Riley added. “It’s like a roller coaster of a trend, it kind of goes up and down.”

Used motorcycles offer a more affordable option to consumers looking for a cheaper bike or consumers who may have too much credit risk to get a loan on a brand-new vehicle. Finding lenders who can help those lower on the spectrum get on a bike is something that Bedford, Tx.-based dealer group Calculated Risk Group looks for in finance partners.

“We look at the payment difference between new and used bikes,” business partner Neil Noble told PSF.  Not necessarily the values, but the payment differences. We look at lenders that offer the ability to help get consumers in certain payment buckets rather than deal in the affordability of $15,000 to $20,000 bikes. It’s spiking in terms of $200 payment, $300 dollar payment etc. So, that’s a topic that we come up with a lot, which is making sure that we have a full breadth of lenders that are able to help people reach their price points.”

Calculated Risk Group manages six Harley-Davidson dealerships and Luck Penny Cycles, which specializes in pre-owned motorcycles. The dealer group is preparing to open Luck Penny Cycles in five more locations across Texas by 2019.

1 - Reader Likes This Article

As Associate Editor of Powersports Finance, Matt Wood reports on the latest developments and trends of the powersports finance world, from innovation to new partnerships. He's also a movie/TV show buff and is willing to argue about Lost anytime. Former bylines include Scout Media and CinemaBlend.

Subscribe to our Email list

Subscribe