MotoLease LLC has launched a new financing program on June 1, aimed at low-dollar powersports vehicles. The MotoLease Express Program offers lease amounts between $1,500 and $6,000 with payment terms between 24 and 60 months, Emre Ucer, the company’s managing partner, told Powersports Finance.
Many OEMs are releasing new models in the $5,000 range — such as scooters or “starter bikes” with a lower cc, he said. “We wanted to give a leasing option [for those products], especially for the customers who wouldn’t qualify for the other options or products.”
The program is designed to help MotoLease be more transparent to consumers and offer more convenience for dealers, Ucer added. Only a $495 acquisition fee is required, and — in most cases — that serves as the down payment. “Even though the dollar amount is low, we allow them to go longer terms if the customer desires to have the lowest monthly payment available.”
The Express Program is more convenient for dealers as well because “it’s easier to explain to potential customers” and it makes the vehicles “more accessible,” he added. “One of the major reasons for a customer to not take the deal is the upfront cost. We wanted to have a solution for that to help the dealers increase their conversion rate.”
MotoLease isn’t the only leasing provider in the market focused on the low-dollar vehicle market. Nextep Funding LLC provides consumers least-to-own options between $500 and $5,000. The consumer demand for powersports vehicles $5,000 and under is “growing like wildfire,” Kamron Davis, Nextep’s vice president of sales, previously told Powersports Finance. That’s why the company is projecting a 500% year-over-year growth in its lease originations in 2016.
MotoLease also predicts a strong growth in its lease originations, especially with the new low-dollar lease options. The company previously predicted it would fund 10,000 leases in 2016, and is currently on track to meet or surpass its goal, Ucer added.