Categories
Business Growth

Do You Know What Makes Millennials Purchase Motorcycles?

Glenice Wilder Vice President EFG Companies
Contributing Author:
Glenice Wilder
Vice President
EFG Companies

Millennials, born between 1980 and 2000, are becoming the most sought-after generation by businesses. At the end of 2015, they had spent $2.45 trillion. By 2018, they’ll spend greater than $3.4 trillion – more than the previously coveted baby boomer generation. Each day, over 10,000 people turn 21. But here’s the rub. Millennials possess a very different purchasing mindset versus previous generations. If you want to sell to them, you must understand them – and likely change how you sell. Heads up powersports dealers – the times they are a’changing!

What Motivates Millennials?

Numerous labels have been attached to the millennial generation. But just as the Depression formed the World War II generation, the Millennials are a product of the 80s, 90s and 00s sociology. Let’s consider a few traits that should impact your sales efforts.

Millennials have the highest education rate of any generation to date. They’re smart and focused on research, taking nothing at face value. For a powersports dealer, this means you better have the facts to substantiate the claim that bike X is better than bike Y.

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Categories
Compliance

Compliance CAN Drive Powersports Business

Steve Roennau Vice President Compliance EFG Companies
Contributing Author:
Steve Roennau
Vice President
Compliance
EFG Companies

Compliance is often considered a “dirty word” in the powersports F&I world.  But let’s think about compliance in a different light. Let’s think about compliance as a business opportunity rather than a business hindrance. Let’s think about compliance as a way to generate more business – both from lenders and consumers.

2016 has brought a flurry of activity from new and current lenders in the powersports market. In some instances, these participants are traditional automotive lenders entering the powersports business to expand their business. In other cases, current lenders who were already servicing the powersports industry have seen their book expand significantly – both in terms of originations and total value. And powersports dealers have supported that growth by attaching valuable F&I products to these deals, boosting lender confidence.

For those lenders who are expanding from the automotive space into the powersports market, compliance has been a way of life for some time. New lenders consider compliance as a solid safety check. A savvy powersports dealer should consider consider compliance as table stakes. If we want more auto lenders to branch into the space, then we need to begin demonstrating compliance within the dealership. Having a compliance process will impress your lending partners and up your “good partner’ quotient.

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Categories
Powersports Market

Surprise! Your Next Motorcycle Sale Might Be A Lease!

Glenice Wilder Vice President EFG Companies
Contributing Author:
Glenice Wilder
Vice President
EFG Companies

Lease volumes are up significantly in the powersports market. While a term lease is fairly common in the automotive space, the concept is new to many powersports dealers. Several factors have converged to make leasing a motorcycle a great option for the consumer in 2016.

Consumer demand is up

Today’s consumer has increased job security, a little more disposable income, and a post-recession pent-up desire to have a bike.  Whether purchasing for a second vehicle or strictly recreational, the customer is ready to make a purchase. But those hard-time memories linger and the buyer is still looking for value.

Inventories are high

Motorcycle OEMs want to move product and are strongly encouraging dealers to sell new bikes.  To sweeten the deal, they are offering subsidized financing incentives. Inventories for used bikes remain high as well, giving independent dealers ample opportunity to capitalize on excess inventory and consumer demand.

Lenders are flocking

Low inflation and increased disposable income has resulting in more lenders entering the powersports market. Whether adding a new book of business – or simply expanding motorcycle originations – lenders like their chances for growth in subprime, pre-owned and new financing.

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