Buy Here Pay Here car lots average a 35% repo rate, and people need their cars. I can only imagine what the repo rate would be on bikes.

 

yes 3rd party co to take the financial risk or you will have to charge allot more for people with credit issues to offset the risk.

 

the only way to make any money at this is by charging a high interest rate...due to defaults and cost of repo'ing. then you will be just like HD!

 

Good luck

 

Curious; where are you going to get the used bikes? You have to sell them for more than you paid for them to cover your operating cost and, of course, some profit. I don't see enough spread between the buy/sell prices to cover all that but I haven't run the numbers. Also assume that the bikes will be sold "as is" with no warranty?

 

just like HD but Honest.

 

Many factors to take in.

The area you live, and number of bikers.
How well you can deal with people and run a business.
How much overhead you will deal with, and cost of property and buying thing.
How many unemployed people are in the area.
If you can offer more than 'just' used bikes (custom parts, good wrench/mech, services.

I have bought my Harleys new, below retail and low rates, and got exactly what I wanted.

The wife got a used bike from the local Harley dealer. The intrest rate was high. I went with a local bank, and while they were lower, it was still a high rate, as bikes are not cars or trucks and have a higher intrest rate as a luxury type thing.

You might do well, but dont plan on getting rich. Plan on being burned by people that buy a bike and a few years later dont ride it, wreck it, and/or just dont want to pay anymore. As a mom and pop type shop people will find it easier not to pay you vs an established shop.

If things go wrong with a used bike, even thought it was bought "as is" they will blame you.

I would do a shop where you sell bikes, do basic services, and sell some neat things. I would have nice POS loaner bikes, if people drop of a bike for service and want a ride while there bike is worked on.

Get a large area and have some rides and BBQ's. Be a friend of the community and do as much as you can without going out of pocket on things.

I am a much better worker than a business person. I would not take the risk, but I think I could make it work if I had to.

 

As far as the will you get ripped off by losers, yes, you will. But that does not mean you should not do it.

You just need to make it clear that they will have insurance and will not get more than 60 days past due, and have a good size deposit to put down.

I would do loans with some people that dont have great jobs, and some people that have great jobs I would not loan to.

 

I used to work for a major parts distributor, selling parts and accessories to independent shops. Here are some of the things they used to complain about.

1. People bring bikes in for service so you buy the parts and do the work. Owner gets in a bind and leaves the bike for a month or two so you don't get paid on time.

2. They can buy it cheaper online.

3. Customers think you should have every part for every bike in stock, not realizing (or caring) that it would cost you a fortune to do that.

4. Your suppliers can't deliver what you need.

5. You work every day during riding season, then starve during the off times.

and so forth. I know this is more about service than sales, but you get the idea. Good luck.

 

Especially in this economy, the risk of default on a cycle loan is very high. Fees and high interest rates is the only way to compensate for the risk. Buyers don't like it, but don't assume the credit company is just ripping you off. You are paying for the ones who default.