With the average price of a new motorcycle in
the UK now similar to that of used or smaller cars, the bike market
may present financers with an opportunity to do more deals,
according to Paul Harrison of the Finance & Leasing Association
(FLA) and former motorcycle dealer specialist Cole Demetriades.
The higher proportion of sales in 2012 taken
up by motorcycles over 650cc has pushed the average price of a new
bike in the UK to approximately £6,300
despite smaller bikes (under 125cc) now taking up more than a
third of sales.
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The FLA do not cover motorbike finance but
Harrison, FLA head of motor finance and keen biker, says finance
companies in the motorcycle market understand bikes don’t
necessarily mean smaller balances.
“That’s evident,
particularly with BMW and Close pushing PCP,” Harrison told
Motor Finance. “When you consider that an average-value
new bike is the same cost as a city car, why should the approach be
any different to cars?”
Despite this, other finance companies are
still reluctant to lend on bikes, observed Demetriades, major
account manager at Barclaycard and former account manager with
Close Motor Finance.
“There doesn’t seem to be the appetite for
many finance houses to jump in to the motorcycle market,” said
Demetriades.
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By GlobalData“They can be very profitable lends,” he added,
citing the fees that can be charged proportionate to the finance
supplied as helping profit margins. “It’s more profitable in terms
of margin to lend £1,000 on a bike than to lend £50,000 on a
Porsche.”
Further comments from Paul Harrison and
Cole Demetriades will be published in the
August issue of
Motor Finance
magazine.
richard.brown@vrlfinancialnews.com
