Moto Market Down; Is Leasing a Solution?

Many economic analysts believe that the motorcycle market is dying, and why shouldn’t they? The number of motorcycle sales has been falling since 2008. Though there are some voices out there that believe that this fall in sales is just the market readjusting to a post-Great Recession world, the investors on Wall Street are still rattled. They want a scapegoat to blame, and millennials are in the crosshairs.

Moto Market Solutions, And the Millennial Generation

Several factors are being blamed for the drop in motorcycle sales. Among them is the concept that millennials aren’t becoming motorcycle riders like their baby boomer parents and grandparents. So why aren’t millennials taking up the banner of motorcyclist?

Some analysts believe that millennial debt is too high. By comparison, generation Xers came out of college with an average of around $15,000 in debt, millennials have an average burden of around $26,000. This difference in debt amounts to around $130 a month, which would be the same payment for an $8,000 motorcycle.

This could be the reason Husqvarna motorcycles are becoming so popular, with price tags between $6,299 and $11,999. New bikes from other manufacturers are usually priced above that $8000 price range, remanding the average millennial to the used market where bike prices are much lower. Now motorcycle leases are being discussed as a solution to millennials being priced out of the motorcycle market.

A low monthly payment on a motorcycle could be more affordable for millennials; however, this generation is also known for its frugality. Leasing is a zero-sum game where the lessee loses everything they have invested in their motorcycle, compared to a buyer who only loses value based on depreciation. This probably won’t stop motorcycle manufacturers from trying this tactic, but the question remains as to whether it will encourage activity in the show room.

This market update was brought to you by the attorneys who ride at Metier Law Firm—watching out for the future of motorcycling while protecting those who ride now.

Tom Metier

Tom Metier

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