The program will provide consumers with complimentary 90-day powertrain protection on preowned motorcycles. Dealers who purchase a CPO-eligible motorcycle from NPA can opt-in to the program to sell the motorcycle as Certified Preowned, according to the release.
“When an NPA vehicle has a Condition Report score of 75 or better and has a good rating on the transmission and clean title, that vehicle automatically is eligible for the program,” Jim Woodruff, NPA’s chief operating officer, told Powersports Finance today. “That saves the buying dealer from having to do any kind of inspection on their own.” Dealers can also upsell to a full vehicle service contract, which covers the cost of the program and provides the dealer with an opportunity to increase F&I profit, he added.
Consumers will benefit from the program because they will have comfort in knowing their motorcycle has been inspected, and dealers will benefit by having a stronger product on the market, Glenice Wilder, vice president of powersports at EFG Companies, said. “Customers are also willing to pay more for a preowned motorcycle knowing they have that 90-day protection available to them,” Wilder added.
To garner consumer perceptions, EFG Companies conducted a third-party survey of 1,000 consumers who purchased a preowned motorcycle within the last two years. From the respondents, 63% placed a higher dollar value — between $500 and $1,000 — on the CPO motorcycles.
The program can also bring comfort to the lenders who might be interested in financing preowned motorcycles because it can remove some of that risk out of the collateral, said Wilder. “Lenders appreciate the aftermarket products that come with vehicles,” Wilder added. “If it [preowned motorcycle] has a CPO or service contract on it — and that contract is financed at the same time — it helps to keep that bike on the road, so it also secures that loan with that consumer.”
EFG Companies is the sales marketing arm for four powersport lenders and provides direct services to more than 50 dealers in the industry.