Cycle News

VOL. 56 ISSUE 9 MARCH 5, 2019 P125 Ducati, a rider on good credit can enter a leasing program over three years at a drastically reduced monthly payment, then have one of three options at the end: buy the bike outright and pay the balloon payment, sell it privately and pay the remainder of the balloon, or trade it in on a new one and begin the leasing contract over again. The latter option is one that's appealing because Ducati gets a substantial trade-in, they know the history of their second-hand inventory, they sell a new bike, and the rider gets a new ride, thus keeping them in the Ducati fold and the cycle of money continues. The BMW model has been hugely successful, with the Germans increasing their sales numbers year-on-year as a result, and riders who simply can't afford the tens of thousands to have BMW's finest under them have the option to do so. Ducati's has been on this bandwagon for a couple of years, but it's still not commonplace for the Japanese manufacturers to do financing options such as these to explore getting new bums on seats. Financing a motorcycle is differ- ent from a car. The most obvious point here being bikes don't travel nearly as far in a given year com- pared to cars, thus making the number of miles traveled per dol- lar often higher than that of a car. Then you throw in other costs like insurance, riding gear, etc., and even financing—however cheap it is—comes into question. That new-bike thrill only goes so far when wages are stagnant, and everything increases in ex- pense like rent and healthcare— for no good reason at all. For example, every year, the smiling assassin who looks after my healthcare plan comes to my work looks me straight in the face and tells me my rates are going up and I will get less for them. I'm getting shanked with barbed wire directly up the date hole while she's making money. It's capital- ism at its best. But I digress. With money being tight across the board, it should come as little surprise to know that more Ameri- cans are behind in their car pay- ments than ever before. Accord- ing to CNN, the fourth quarter of last year saw more than 7 million car loans past due by at least 90 days. This number represents a 1.3-million loan hike in past-due loans from their previous peak in 2011 as the country pulled its way out of the Great Recession and unemployment was twice the level it is now. This is worrying for the bike world because it all comes back to what people can afford to spend, rather than what they're willing to pay. Here's another option for you. What about renting a bike? The shared economy is finally making its way to motorcycles on a grand scale, and even savvy dealers are getting in on the act. A friend of mine recently started renting her bike out on Twisted Road, a website that gives bike owners the chance to make money off their motorcycles that are sitting in the garage gathering dust and chewing up registration costs. It's a simple service. The owner has insurance on their bike; the renter proves they have a bike license and Twisted Road has an additional insurance policy that covers accidents and damages. The company charges a 20 percent fee on all rentals at checkout, and require a $1000 credit card hold the week before you ride. The best part is you can find a bike anywhere in the world. It's different to something like Eagle Rider (who rents you the bike from their inventory). It's Airbnb for bikes. When many are brutally honest with themselves, they might get out a few times a year on a bike. Sad, but true. Renting thus makes more monetary sense than any financing, or outright ownership if all you want to do is go for an occasional ride. It even means getting on a 2019 GSX-R1000 for a while becomes an option. Ownership culture is changing right before us, and some com- panies are getting on with this better than others. Regardless of whether it's a traditional loan, financing, renting or even doing up the old shitter in the shed, I think we can all agree we should all ride more. It's just a matter of finding the right way to do it. CN

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