Manufacturer partnerships could be on the horizon for MotoLease LLC, however, the leasing provider is keeping dealers in the driver’s seat as it waits for OEM partnerships to form, said Managing Partner Emre Ucer.
“We always look for OEM partnerships, but OEMs move really slowly,” Ucer told Powersports Finance at the AIMExpo in Orlando. “In general, there are some OEMs that have been talking to us for three years.” They want to partner with MotoLease, but for some reason it takes “forever,” Ucer said.
Initially, MotoLease wanted to work directly and solely with OEMs, Ucer said, but then realized dealers are driving the industry. “Why are we waiting for the OEM to step in?” he said. “We welcome OEMs, don’t get me wrong, but while waiting for those partnerships, we don’t want to wait another three years. So we are going direct to the dealers and offering them leasing programs.”
For example, MotoLease launched a leasing program catered to franchise dealers in early August to boost new-vehicle originations and help franchise dealers increase margins, Ucer previously said. The program is offered to consumers through MotoLease’s authorized franchise dealer network, and includes zero-to-low dealer fees that are comparable to credit card transaction fees.
As of August, 300 MotoLease authorized franchise dealers are using the new program. “We like to increase our new-vehicle originations, and we believe that the new program is better aligned to make more leases,” he said. MotoLease has a “couple new OEM manufacturer relationships” expected to be finalized in the coming months, “and this program will be a nice starting point for those OEM programs,” he added.
If an OEM wants to partner, MotoLease welcomes those conversations, Ucer said, “but dealers want everything yesterday, they don’t want to wait,” he said. “When you go to dealer and say, ‘We have a plan like this, and it will save you money six months down the road,’ well six months down the road doesn’t exist for them. They look at it and say, ‘What is available to me next week?’ That’s what they care about.”