Online motorcycle retailer RumbleOn partnered with Sonic Automotive in December 2017 to allow the car dealer group to be “more aggressive” with powersports trade-ins, Marshall Chesrown, chief executive of RumbleOn, told Powersports Finance.
The problem RumbleOn identified is that motorcycle owners are going into car dealerships looking to trade in their used bikes, but many automotive dealerships decline those trade-ins.
“Most used-car managers would get fired if that thing was seen sitting on the showroom floor,” Chesrown said. Dealers are put in a position where they have to immediately sell the bike at auction, where they won’t get market value, or the consumer has to sell peer-to-peer.
Now, customers at Sonic Automotive’s 100 dealerships can get a three-day cash offer on a motorcycle trade-in “powered by” RumbleOn. “The idea is [dealers] can get market value rather than a wild guess [through a wholesaler],” Chesrown said. “It’s people who are opting to take cash and instant liquidity as opposed to going through the current process.”
RumbleOn aims to facilitate more private-party purchases by moving beyond motorcycle sales into categories such as side-by-sides, off-road and watercraft.
“We started with road bikes — 600cc and larger — but our software works with anything that has a VIN,” he said. “We’re starting to see more and more diversity in the inventory, and we’re creating cash offers for any of that.”