LAS VEGAS — MotoLease LLC would “love” to lease more new vehicles, but expanding its new-vehicle mix requires consumer encouragement from the dealers, Chief Executive and co-Founder Maurice Salter said at PowerSports Finance 2017 recently.
In order to advance new vehicle leasing — and prime leasing — dealers need to encourage people to look at it as an option, Salter said.
“Anything that is new is going to have a caution,” he told attendees. “As far as new vehicles and prime customers, I don’t know how many people lease a car but half of you do according to lease statistics, and most of you have good credit. Why are you leasing? You want a new car in a few years.… That’s same with prime motorcycle customers; they want a bike every two to three years.”
About 20% of the Los Angeles-based company’s leases are new vehicles and 30% of its leases are prime borrowers, Salter said. However, the company has been vocal about its plans to expand those concentrations in the coming years.
“I think manufacturers should like [leasing] too, because they are getting a new bike on the market in that period of time,” Salter said. A borrower’s credit is reported to the agencies, and his or her credit goes up over time if they are making payments, he explained. By the time the borrower finishes a two- or three-year lease term, his or her credit is higher. Thus, this borrower can receive “a better deal on a better vehicle, and you are going to sell them another bike,” he added. “I think that’s another advantage to leasing.”