Motorcycle dealers are paying premium prices for used inventory in an effort to maximize showroom traffic as demand shows no signs of slowing.
Shoppers typically start their buying journey online to explore inventory and narrow down their selections before setting foot in a showroom. Inventory is low and so is dealership traffic, Emre Ucer, chief executive of powersports lender MotoLease, told Auto Finance News.
“That’s why dealers are so motivated to get their hands on any vehicle,” Ucer said, noting that dealers will pay “whatever they need to in order to bring in more inventory to the showroom.”
This is a familiar trend in the powersports and automotive industries as inventory is crunched and demand is high. New-model motorcycle sales have increased 15.2% year to date through the second quarter of 2021, according to Motorcycle Industry Council.
Pandemic-related factors — including government stimulus checks, the declining interest in public transportation and the increased expense in ridesharing — has heightened demand in the motorcycle market, MotoLease President Maurice Salter told AFN. Less road traffic, due to employees working from home, also gives motorcyclists more room to ride.
High used-vehicle prices have dealers looking to their lending partners, Ucer said. “That’s where we come in; a lot of our programs are designed specifically for used [vehicles].”
MotoLease is headquartered in Los Angeles and serves more than 1,000 new and used powersports dealers nationwide with nearly 50 employees. Since its start 10 years ago, the lender has focused on providing flexible payments and minimizing what is due at signing, Ucer noted.
The lender also offers a phone application for customers to check how many payments they have left and how many have been made, providing their balance “right at their fingertips,” Ucer said.
Powersports Finance Summit, the premier recreational vehicle finance event, returns October 26 in Las Vegas. The Summit is the only full-length forum for those companies involved in the financing of motorcycles, jet skis, side-by-sides, and other specialty vehicles. To learn more about the 2021 event and register, visit www.PowersportsFinance.com.