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Octane launches EV financing
The lender has partnered with electric motorcycle maker UBCO
Powersports lender Octane is expanding into electric vehicle (EV) financing through a fresh partnership with electric adventure motorcycle manufacturer UBCO.
New York City-based Octane now offers digital financing tools such as soft-pull prequalification and competitive rates through its in-house lender Roadrunner Financial to UBCO dealers, the lender announced today.
“UBCO’s units are reaching that segment of Americans who may not be powersports customers or they want to get into electric vehicles,” Jon Vestal, senior vice president of powersport sales at Roadrunner Financial, told Auto Finance News.
Eugene, Ore.-based UBCO, originally founded in New Zealand in 2015, has evolved into a digital EV platform with products including on- and off-road vehicles, accessories and cloud-based subscription software, according to an Octane release.
“We’re building vehicles that expand [the powersports] market opportunity through a more seamless customer experience, from initial touchpoint all the way through to purchase and post-purchase, as well as fundamentally a vehicle that is easier to own and operate,” Phil Harrison, chief revenue officer at UBCO, told AFN.
Customers can order an electric bike at a dealership or on UBCO’s website and choose delivery to their home or a local dealership, according to UBCO’s website. The 2×2 electric adventure bike starts at $6,999. UBCO is manufacturing about 500 units a month, Harrison said.
Growing dealer network
UBCO’s growing dealer network includes more than 100 dealerships in the U.S., and the company adds about 10 to 15 dealers each month with the goal to have 400 to 500 dealers at scale, Harrison said. The company eventually will launch electric products such as dirt bikes and side-by-sides, he added.
“The challenge for OEMs for the last few decades is how to get more people onto motorcycles and onto recreational off-road vehicles. We see finance as a key component of that,” Harrison said, noting Octane offers the digital financing experience UBCO was looking for.
The partnership is Octane’s first foray into EV financing, Vestal said. The move follows a series of market entrants for Octane, which launched financing for tractors, trailers and recreational vehicles over the past year. The company also in October surpassed $1 billion in year-to-date originations.
