Online used-motorcycle retailer RumbleOn has secured a floorplan line of credit for up to $25 million from Ally Bank, the companies announced last week.
RumbleOn serves as an entirely online marketplace where consumers and dealers can buy, sell, trade, or finance used-motorcycles. Utilizing the $25 million of credit, the company plans to purchase pre-owned motorcycles for resale to consumers, in addition to driving growth.
“The line is sized to handle our rapidly growing needs for inventory financing for the foreseeable future and will be fundamental to reaching our long-term business targets,” Marshall Chesrown, RumbleOn’s chief executive officer, said in a company press release.
Ally Bank will provide the $25 million in funding as a part of its floorplan vehicle financing program. The bank has funded more than $50 billion finance credit lines in the transportation industry. Last month, Ally Financial, the bank’s financing arm, issued $750 million line of credit to make loans through DriveTime Automotive’s network of used-car dealers. The bank also renewed and increased its financing deal with the online, delivery dealership Carvana for $2 billion worth of retail contracts in November 2017.
RumbleOn has been working on growing its partnerships, having announced deals with MotoLease, a used-motorcycle lessor, and car dealer group Sonic Automotive. With Sonic Automotive, RumbleOn aims to make powersports trade-ins more aggressive at dealerships by allowing a three-day cash off on motorcycle trade-ins.
Separately, RumbleOn aims to facilitate more private-party purchases by moving beyond motorcycle sales into categories such as side-by-sides, off-road vehicles, and watercraft.
“We started with road bikes — 600cc and larger — but our software works with anything that has a VIN,” Chesrown told Powersports Finance last month. “We’re starting to see more and more diversity in the inventory, and we’re creating cash offers for any of that.”Like This Post