Royal Enfield North America is mulling options to establish a first-time buyer program, which could include a revolving credit partnership, said Vice President of Sales Mike Roark.
“I think [with] the price-point of our product, what makes sense is being able to do something on a credit card,” Roark told Powersports Finance. The average Royal Enfield motorcycle is $5,000.
“People go out and they spend that much money on a couch,” he said. “So to me, that makes a lot of sense — the first-time buyer program, and partnering with somebody who can underwrite it on a credit card. I think we obviously would talk with anybody about it.”
Many companies are focusing on the first-time buyer, Roark said. KTM North America, for example, is making a point to focus on millennials this year.
With some of KTM North America’s “entry-level products,” such as racing motorcycles and lower-cost off-road vehicles, focusing on millennial buyers could be a profitable opportunity, KTM’s President Jon-Erik Burleson told Powersports Finance in November.
“You see a lot of companies do it, because it gets young people into the market,” Roark said. “Maybe their barrier to come into the sport is, ‘I have no idea, can I even get financed?’”
Milwaukee, Wis.-based Royal Enfield currently employs a staff of 20, and it has 36 dealers in its network. The company works with ThunderRoad Financial.