Fill in the blank: Movies is to Netflix as Powersports is to _______.
If you said leasing, that was our answer too. Leasing is like a powersports version of a subscription. Hear us out! Leasing is an agreement that allows you to use a product for a fee. You have access to the product as long as you’re paying every month. You don’t actually own the product. You’re not committed to that product, and can upgrade or cancel at the end of the contract. Sounds like a subscription to us.
Month to month “subscriptions” are currently the way of life for young buyers. Housing rentals, video streaming, weekly meal kits. The core of popularity for these services with millennials is flexibility and accessibility. Let’s go deeper into the attraction of these principles, and how you can bring in a young, subscription-hungry group with leasing.
Consumers in their twenties and thirties live in a state of constant change. Part of this is due to the way the world works. Our technological age is a state of continuous demand for improvement. Millennials have to be ready to pivot with each step, because those are the demands of modernity. And they’ve really taken a liking to that lifestyle.
Millennial reception to change is smooth, so there’s been a shift in culture to prioritize flexibility in everything. That results in more personalization as companies catch on and provide more options. When it comes to millennial purchases, subscriptions are attractive because they are easily customizable- both for the expectation of change or simply for personal preference.
Now, leasing isn’t as flexible as a video streaming subscription. But, firstly, leasing terms are generally shorter than installment financing terms. Through the same attraction as month-to-month subscription, millennials could see benefit in a temporary arrangement where they use a vehicle without necessarily owning it. There’s much more flexibility in signing a 2 or 3 year lease as opposed to a 6 year loan payoff term. For buyers who are resistant to being locked into one vehicle, or not sure where they’ll be in a couple years, that’s a huge difference.
Secondly, young consumers love having options to make a perfect purchase. They stay away from default offerings in order to buy their ideal product. Look no further than the build-your-own-burrito model for proof. Roadrunner Financial’s leasing partner BRP answers this demand with customization options for Ryker and Spyder vehicles.
From top to bottom, your young powersports customers can build their dream vehicle with a virtual customizer, and lease it through Roadrunner. When you can show them products that fit their wants and needs as closely as possible, you’ll get some millennial interest in your leasing options.
Due to a combination of age, high rates of debt, and high costs of living, budgeting is important to millennial survival. Upfront costs that come with financing (like down payments) sometimes aren’t affordable for a young powersports buyer. But that doesn’t make their needs and wants different from anyone else’s. That’s why they’re willing to pay month to month for access to a product that they wouldn’t be able to afford in full.
There’s no use in trying to sell someone a product can’t pay for, right? In addition to lower upfront costs, lease payments are often lower than installment financing payments. By leasing a powersports vehicle, these young people can have a luxury ride for a budget-friendly monthly payment. This vehicle may even be nicer or newer than the vehicle they can afford to finance.
At the end of the day if millennials can stay in budget, and also use great products, then lack of ownership doesn’t matter. Ownership is also a commitment to one vehicle, even as technology continues to improve. Access to the most up-to-date technology is a key desire for millennials. Short leasing terms offer the opportunity for a tech upgrade every couple of years. If you don’t think they’ll take this bait, take a look at the Apple store line when new smartphones drop. Through leasing, the newest and coolest powersports vehicles are within reach.
Leasing combines flexibility, customization, financial access and technological access to create a perfect program for young powersports customers. Now that you know what can sell a millennial, you can use these principles to sell more leases. Also, the attractions of flexibility and access aren’t limited to young people- these points are a new part of your sales toolkit when it comes to leasing for everyone.
Leasing is an exclusive program for Can-Am® On-Road. Eligible Vehicles include new 2018 and 2019 Can-Am Spyder & Can-Am Ryker vehicles. If you’re interested in learning more about Roadrunner’s leasing program, contact your Regional Sales Manager or give us a call at (646) 370-5471.