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.