Offer finance for motorbike sales

The Benefits of Offering Finance for Motorbike Sales

In today’s competitive market, offering finance options for motorbike sales has become an essential strategy for dealerships looking to increase their sales and customer base. Whether you're a small, independent bike dealer or a larger showroom, the ability to offer flexible payment options can make a significant difference in closing sales and improving customer satisfaction.

In this article, we will explore the key benefits of offering finance for motorbike sales, how it can enhance your business, and how partnering with a finance broker like Kandoo can help streamline the process for both you and your customers.

Why Offer Finance for Motorbike Sales?

1. Expand Your Customer Base

Motorbikes are an exciting and often aspirational purchase, but they can also represent a significant financial commitment for many buyers. By offering finance options, you enable potential customers who might not have the immediate funds to still purchase the bike of their dreams. This broadens your customer base, allowing individuals who may not have been able to afford a lump sum payment to consider your dealership as a viable option.

By providing finance options, you’re essentially giving customers more flexibility and control over how they manage their finances. This can make your dealership more attractive to a wider range of people, including younger buyers or those who prefer to spread the cost of their purchase over a longer period.

2. Increase Sales and Revenue

Offering finance options can directly impact your sales figures. Customers are more likely to make a purchase when they know they can spread the cost over several months or even years. For many, this can be the difference between buying a motorbike now or putting off the purchase indefinitely.

Furthermore, finance options can encourage customers to consider more expensive models or additional features, as they will be paying for the bike in manageable instalments rather than one large payment. This can increase your average transaction value and ultimately boost your overall revenue.

3. Improve Customer Satisfaction

Providing finance options not only helps customers afford their purchase but also enhances their overall buying experience. When customers feel they have the flexibility to manage their payments, they are more likely to feel satisfied with their purchase. This can lead to positive word-of-mouth referrals and repeat business, both of which are crucial for the long-term success of any dealership.

Additionally, offering finance gives customers the peace of mind that they are making a financially responsible decision. Instead of emptying their savings or taking out a personal loan, they can enjoy the convenience of a structured finance plan tailored to their budget.

How Finance Works in Motorbike Sales

1. Hire Purchase (HP)

One of the most common finance options for motorbike sales is Hire Purchase (HP). Under a HP agreement, the customer pays a deposit, followed by fixed monthly payments over an agreed period. Once all the payments have been made, ownership of the motorbike transfers to the customer.

HP agreements are particularly appealing to customers who want to own the bike outright but need to spread the cost over time. The fixed payments make it easy for customers to budget, and since the loan is secured against the motorbike, interest rates tend to be lower than unsecured loans.

2. Personal Contract Purchase (PCP)

Another popular option is Personal Contract Purchase (PCP). With PCP, the customer pays a deposit and lower monthly payments than with HP, as they are only paying off the depreciation of the bike rather than the full value. At the end of the contract, the customer has three options: they can return the bike, pay a final balloon payment to own it outright, or trade it in for a new model.

PCP agreements are ideal for customers who like to change their motorbike every few years and are less concerned about owning the bike outright. The lower monthly payments make PCP an attractive option for budget-conscious buyers.

3. Personal Loans

Some customers may prefer to take out a personal loan to finance their motorbike purchase. This allows them to borrow a lump sum to pay for the bike upfront, which they then repay over a fixed period. Personal loans offer flexibility, as the customer owns the bike from day one, but they typically come with higher interest rates than HP or PCP agreements.

The Role of a Finance Broker in Motorbike Sales

1. Simplifying the Process for Dealers

Offering finance can seem daunting for dealers who are unfamiliar with the process, but this is where a finance broker like Kandoo comes in. A finance broker acts as an intermediary between the dealership and various lenders, helping to secure the best possible finance options for your customers.

Kandoo, for example, is a UK-based retail finance broker that specialises in helping businesses offer finance to their customers. By partnering with a broker like Kandoo, you can take advantage of their expertise and network of lenders, ensuring that your customers receive competitive finance packages tailored to their needs.

Kandoo simplifies the process for dealers by handling the paperwork, credit checks, and lender negotiations, allowing you to focus on what you do best—selling motorbikes. This can save you time and resources, as well as reduce the administrative burden associated with offering finance in-house.

2. Enhancing the Customer Experience

A finance broker can also enhance the customer experience by providing a seamless, hassle-free application process. With Kandoo, for example, customers can apply for finance online, receiving an instant decision and a range of offers from multiple lenders. This gives customers the confidence to make a purchase, knowing that they have access to affordable finance options.

Additionally, working with a broker ensures that customers receive impartial advice on the best finance option for their circumstances. This builds trust and transparency, which can improve customer satisfaction and increase the likelihood of a sale.

Why Partner with Kandoo?

1. A Wide Range of Lenders

Kandoo works with a panel of reputable lenders, which means your customers have access to a wide range of finance options. This increases the likelihood of finding a suitable finance plan, regardless of the customer’s credit score or financial situation.

By offering a variety of finance options, Kandoo ensures that customers can choose a plan that fits their budget and preferences, whether that’s a HP, PCP, or personal loan.

2. Competitive Interest Rates

One of the main advantages of partnering with a broker like Kandoo is that they can secure competitive interest rates for your customers. With their extensive network of lenders, Kandoo can negotiate better rates than customers would typically find on their own, making finance more affordable and attractive.

This can be a key selling point for your dealership, as customers will appreciate the opportunity to finance their purchase at a lower cost.

3. Simple and Transparent Process

Kandoo prides itself on offering a simple and transparent finance process. Their online application system is user-friendly, and customers receive instant decisions, so there’s no waiting around for approval. This quick turnaround can help you close sales faster, as customers are more likely to commit to a purchase when they have immediate access to finance.

Kandoo also provides clear, easy-to-understand terms and conditions, ensuring that customers are fully informed about their finance agreement before signing on the dotted line. This transparency helps build trust and confidence, which is essential for fostering long-term customer relationships.

How to Get Started with Offering Finance

1. Partner with a Finance Broker

The first step in offering finance for motorbike sales is to partner with a reputable finance broker like Kandoo. By working with a broker, you can offer a range of finance options without the need to handle the process yourself.

To get started, simply contact Kandoo to discuss your dealership’s needs and the types of finance options you’d like to offer. They will guide you through the setup process, ensuring that everything is in place to start offering finance to your customers.

2. Promote Your Finance Options

Once you’ve partnered with a broker and set up your finance offerings, it’s important to promote these options to your customers. Make sure your website clearly displays the finance plans available, and train your sales team to discuss finance options with potential buyers.

Highlight the benefits of financing, such as the ability to spread the cost and access competitive interest rates. By promoting finance as a key part of your sales strategy, you can encourage more customers to consider purchasing a motorbike from your dealership.

Conclusion

Offering finance for motorbike sales is a powerful tool that can help you expand your customer base, increase sales, and improve customer satisfaction. By providing flexible payment options, you make it easier for customers to afford their dream bike, while also enhancing their overall buying experience.

Partnering with a finance broker like Kandoo simplifies the process, giving you access to a wide range of lenders and competitive finance options. With their support, you can focus on selling bikes while they handle the complexities of securing finance for your customers.

If you’re looking to boost your motorbike sales and offer your customers greater flexibility, now is the time to consider offering finance—and Kandoo is the perfect partner to help you get started.