Spurred by data analytics, Fuel Capital Group has added 2007 and 2008 model year Harley-Davidson motorcycles to its lease program, Manager of Data & Analytics Blake Henke told Powersports Finance.
The Naples, Fla.-based lender looked into financing older model year bikes after dealers expressed that they had 2007 and 2008 trade-ins in their inventories. Fuel Capital ran an analysis of the models and found that leasing the bikes was a viable option.
“The first thing that jumped out at us was the Harley-Davidson production number,” Henke said, noting that 2007 and 2008 were some of the OEM’s highest production years ever. “Once we saw that, we realized there’s a lot of these bikes floating around on the used market,” he said. “We started to get a lot of feedback from our dealers that [said], ‘We would love to do more deals with you, but a lot of the bikes we have are 2007 and 2008,’ and they just didn’t fit within our initial program.”
For More Read: Fuel Capital Group’s CEO Talks Loan Terms and Leasing
After a residual analysis, Fuel Capital found that the older model years had a steady depreciation rate, which made it “easy to track and estimate where [the value was] going to be in a few years because we’ve got 10 years of live data on those models,” Henke added.
The company has no plans at this time to finance bikes older than 12 years because of the large number of 2007 to 2008 bikes that will continue to “float around” and hold value, Henke said.
Fuel Capital Group provides leases for Harley-Davidson and Indian Motorcycles, and works with more than 100 dealers in 18 states.