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Reasons to pursue the preowned market – December 4, 2006

Higher gross profit potential than new motorcycles

  • Gross profit margins of 25 percent or more are attainable.
  • Establishing pre-determined margins on your used motorcycles allows you to have control over the gross profit margins.
  • Since every used motorcycle is unique in some way, pricing is seldom influenced by competition from other dealers.
    Increased volume in new motorcycle sales

  • Taking trade-ins increases sales of new motorcycles.
  • Used motorcycle inventory attracts additional customers. Some of these will convert into new motorcycle purchasers.
  • Used motorcycle purchasers often trade up to new motorcycles.
    Increased floor traffic

  • Used inventory creates additional price points that attract new customers.
  • Used inventory provides an expanded model selection that opens new markets to your business.
    Increased sales of F&I products

  • Used customers buy F&I products just like new buyers.
  • Used buyers are more likely to purchase extended protection than new buyers.

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