The use of the motorcycle began to change after the pandemic, and more and more users choose this means of transport to get around, either for daily activities or for leisure time.
Although in numbers the growth is moderate, since it was 7% in 2022, with 410,955 patented units, and could reach 500,000 units in 2023; what is observed is a major change in the type of customers who choose two wheels.
This was confirmed to iProfessional by representatives of the main motorcycle groups that sell them in the country, who also agree that the financing, which in many cases is 50% of the value of the unit, with 12 or 18 installments without interest , became the great ally of this new trend.
On the other hand, a fact that stands out is that the purchase opportunity is not concentrated solely in motorcycles, which are the units that always had the most loans (one of the last cases was the Mi Moto plan with Banco Nación in 2022 ), but there are proposals that exceed up to 600 cc.
Proposals for financed purchases
According to the client’s profile, there are various models of motorcycles that can be financed.
In the case of La Emilia groupwhich sell from Motomel to high displacement motorcycles, They have a pledge loan with BBVA, with a French amortization system, 0% rate, 12 installments, for the following products: Benelli Imperiale: $1,999,900; Leoncino 500: $3,345,000; 502C: $3,650,000.
Benelli Imperiale, to buy in 12 months without interest.
Taking as an example the Imperial BenelliThis is the plan:
- Model Value: $1,999,900
- Delivery: $999,950
- Fee for 12 months: $83,329
Benelli 500 C, another option to buy in the long term.
In the case of a Benelli 502 C, which is more expensive, the financing will be as follows:
- Model value: $3,650,000
- Delivery: $1,825,000
- Fee for 12 months: $152,083
In other models of the La Emilia group, the loan is in 12 installments with a TNA of 39.9%, also financing up to 50% of the value of the model. There are four products and the fee will depend on the percentage financed:
- 752 S: $4.820.000
- TRK 502: $4.115.900
- TRK 502X: $4.685.000
- TNT 600i: $4.998.000
“Financing is a very important tool for the dynamics of the sector, and I think they will be sustained throughout the year for the mid-size segment because it is a very important leverage tool,” commented Juan Chavarino, Commercial Director at Grupo La Emilia,
In the case of Simpa group, where brands such as Royal Enfield, KTM, Husqvarna, Aprilia, CFMoto, Piaggio and Guzzi are marketed, among others, They also have the option of finance different models. “We have proposals for all brands because it is part of the group’s philosophy,” commented Juan Carlos Mas, Commercial Manager of the Motorcycle division.
Then he added: “In Argentina there is a structural financing deficit, but in other countries the user always buys a financed car or motorcycle. That’s why we understood that something like this is needed and we were the first to work with BBVA, because it doesn’t matter segment, but this always works for the general consumer,” he added.
Aprilia 160, one of the cheapest motorcycles financed.
In this case, Two financing options stand out between the two extremes they offer:
- The cheapest is the Aprilia 160, which costs $1 million and is financed in 12 installments without interest, with a value of 42,000 pesos.
- The most expensive costs US$39,000 (green tickets) of which up to 50% of its value is financed in 18 interest-free installments.
“The financing is a success. One out of every two Aprilia units sold is on credit“Mas explained.
Royal Enfield, another in a good time to finance.
In the case of Royal Enfield, also from Simpa, in one of the exclusive dealerships they explained the financing for the model Interceptor 650:
- Model value: 2,870,000
- Reserva: $50.000
- Delivery: $1,720,000
- Fee for 12 months: $91,666
Another option is the brands of the Iraola group, which has different proposals for Kawasaki, Kymco and Bajaj. Kawasaki has 12 and 18 installments without interest for the Z400 models at u$s11,100; Ninja 400 at $13,350; Versys 300 at $13,250; and KLR 650 at $17,850. Up to 50% of the price of the model is financed.
We take the following case with the Kawasaki Z400 u$s11,100 ($4,406,700 – dollar blue $397):
- Delivery: $2,203,350
- Fee for 12 months: $183,612
- Fee for 18 months: $122,408
Another option is Kymco, with the Now 12 plan without interest for Agility 125, which has a value of $577,900; Agility 200I at $1,135,990; Like 125 at $818,990; XTown 250I at $6,890; and Downtown 350 ABS at $10,790. These cases are already lower-end models, with cheaper quotas.
New client, new interests
The importance of offering financing to access the motorcycle market comes hand in hand with a change in consumer behavior.
“We have been noticing that there are new entrants to the sector, which do not have to do with the age that enables them to use the motor, but rather with the interest. That is why the financing tool allows us to attract new clients, but today we also see a dynamic that has to do with the Argentine phenomenon of store of value, where people can buy a vehicle even if they are not a fan, but know that it holds value in the futureChavarino commented.
The motorcycle today acquired different types of uses.
In the case of Simpa, it is also recognized in the motorcycle that he has several benefits recognized after the pandemic, but at the same time, it is cheaper, and that is very important when choosing a means of transport.
“Today the effect linked to the pandemic disappeared and it is being evaluated because it is a economic means, a flexible mobility solution, with several advantages. This gave it another value that is reflected in sales and the large number of options that the client has to choose from,” said the manager.
Expectations for the year
According to Grupo Simpa, 2023 has a lot of potential to grow, although it is far from the historical mark when it reached almost one million units.
“We understand that it will be a good year because the bike already has many types of uses. That is why we will also have very important releases,” said Mas.
In La Emilia they project a market of 500,000 units, with a sustained demand until October, when the elections arrive. In any case, from end to end, the growth for the year would exceed 2022. “The group has several announcements that will be made at the Motorbike Show,” said the representative.
In this way, the event that will take place in May with an exhibition that will bring together the brands will be a great finishing touch for a sector where 90% of what is sold is assembled in Argentina.