Issue link: https://read.dmtmag.com/i/243961
28 • January 27, 2014 • Powersports Business PWC www.PowersportsBusiness.com Yamaha's leasing program is first of its kind WaveRunner program creates ownership path for new group of consumers BY DAVE McMAHON EDITOR IN CHIEF With data showing that 25 percent of all automobile transaction are leases — and 50 percent when high-end autos purchases are considered — the opportunity to lease would seem to be a welcome addition for powersports dealers. Thanks to a new program being launched in 2014 by Yamaha WaterCraft, dealers will be will be able to offer an industry first-of-its-kind leasing program for new WaveRunners. Customers will be able to consider the familiar, automobile-like lease plans for their next WaveRunner purchase. The program is designed for consumers who may not qualify for conventional OEM financing programs or those looking for the flexibility of a lease that includes the option to return or purchase the WaveRunner after 36 or 48 months. According to Bryan Seti, Yamaha WaterCraft national marketing manager, the goal of the leasing program is to get more people on the water. Seti said that upwards of 90 percent WaveRunner customers will be able to consider the familiar, automobile-like lease plans. of the consumers who choose to lease a new Yamaha WaveRunner will qualify. "Many of these consumers currently lease a car or have had a great experience leasing a car in the past. For them, the flexibility of leasing is preferable to purchasing," Seti said. "And if these consumers decide to purchase the WaveRunner in the future, they now have the option to do that after 36 months, or simply bring it back at the conclusion of their payment schedule." The program has already launched in six states — California, Arizona, Nevada, Texas, Georgia and Florida. Four of the six are among Yamaha's top five markets, Seti said. "It's a program that will be appeal to a secondary customer base, which is customers that typically haven't been approved — more of a distressed, subprime customer," he said. "They've not only not been approved by us in the past, but they haven't been approved by our competitors, either." Seti notes that the program requires no minimum FICO credit score, and the minimum gross monthly income for lease participants is $1,500. "There's no dealer recourse whatsoever," Seti said. "At the end of that 36 or 48 months, the unit actually goes back to the leasing partner that we're working with. The leasing partner will either make an offer to the dealership to buy it, or take it to auction at that point. This is a true lease for prime and subprime customers. You can walk away in three or four years." Seti says the program will give dealers another avenue to bring new PWC owners into the market. "There's no reason for any customer to walk out the door. With this program, and our traditional financing programs with GE Capital and Capital One, dealers have a whole arsenal in their tool chest to find something for each customer," Seti said. "Many customers are going to go into the dealership thinking they're not going to be approved, and will be pleasantly surprised that they will be approved." With Yamaha's VX line sitting as the No. 1-selling entry-level brand for about a decade, the leasing program likely will likely build on those sales. Whether entry-level or high-end, the leasing program figures to bring new faces into dealerships. And while the leasing program is available at dealerships in six states for its launch, Seti said more states will be added throughout 2014. PSB WaveRunner guaranteed buyback program launched Owners can trade-in or walk away after 36 months BY DAVE McMAHON EDITOR IN CHIEF Sign, play, walk away. That's the concept behind the industry's first guaranteed buyback program, launched in December by Yamaha WaterCraft. The program provides buyers of new Yamaha WaveRunners the opportunity to return their WaveRunner to their dealer after 36 months, and simply walk away or easily trade up to a new model. When a customer purchases a new 2013 or 2014 WaveRunner and finances on a 60-month term, the buyer can now have the option to return the PWC to the originating dealer after 36 months as a guaranteed buyback. The unit will be valued according to NADA standards, and in the event that the customer owes more that the NADA Used Trade-In Value, the remaining loan balance will be paid by Yamaha up to $2,500. "The idea behind the program is to try to get customers that may be on the fence — they're maybe not purchasing for whatever reason, whatever barriers might be out there," said Bryan Seti, Yamaha WaterCraft national marketing manager. "We wanted to make a real easy way for them to join the sport. After 36 months they can simply walk away or buy a new unit. We think there are two customers that this is going to appeal to: the first-time customer who may be on the fence about whether they want to purchase, now that they know they have an out. They may not want to buy for 60 or 72 months when they can just lease the unit. And the second is the high-end customer. Dealers are telling us that a lot of their high-end customers really just want to get a unit and trade it in after 36 months and get the latest and greatest new high-end unit/" And with customers knowing that negative equity after three years will be paid off at no cost to them if they decide to trade-up or simply walk away, the program is expected to add newcomers to the sport. "The program allows customers to move in to a new WaveRunner with the least hassle possible," said Seti. "Now, our customers can enjoy great 60-month financing terms with the peace of mind of knowing that they are only locked in for 36 months with no responsibility for selling their used unit." PSB Dealership to support ride WaterTop Events announced the exclusive four-day/four-night, all inclusive 2014 Bimini Road Rally will be held July 24-28. Part event, all adventure, the 2014 Bimini Road Rally will be the eighth year of the popular PWC ride. This is a one-of-a-kind experience that takes up to 20 special fun-seekers on a four-star trip from North Miami, across open-ocean and the Gulf Stream to the island of Bimini in the Bahamas, in the middle of the Bermuda Triangle. Each participant will test their physical and mental stamina with the safety of expert PWC adventure riders and the support of RIVA Motorsports and Marine escort boats leading the way. The all-inclusive trip will include a one-night stay at the Double Tree Ocean Pointe Resort and Spa in Sunny Isle, Fla., and three nights at Bimini Sands Resort and Marina. "The Bimini Road Rally has truly become the personal watercraft industry's premier, owner's adventure ride," says WaterTop general manager Tim McKercher. "Bimini is truly an island in the stream and is such an interest- P28-PSB2-PWC.indd 28 ing and unique destination. The Bimini Road Rally allows PWC owners to get away with no worries about anything, as our veteran event team makes it very easy to relax and have fun." Eventurists will visit the sunken concrete ship, the Sapona, various aircraft crash sites, the highly-sought fountain-of-youth, Honeymoon Harbor, Alice Town, and the legendary Bimini Road — thought to be the path to the lost city of Atlantis. The Bimini Road Rally is not for the faint of heart, as a trip into the Bermuda Triangle always brings uncertainty, but the experienced WaterTop staff ensures participants have an incredible experience-of-a-lifetime. This Rally is limited to the first 20 people who own their own, unmodified four-stroke PWC and meet the detailed criteria required for this trip. All interested parties must apply and meet WaterTop's requirements for admission. The participation fee is $2,300 per rider and $1,900 for a second person sharing the same room. This fee includes everything during the trip including four nights' accommodations. PSB 1/15/14 12:10 PM