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CFMOTO sees power of financing packages

By Dave McMahon

CFMOTO’s brand recognition is taking tremendous strides when it comes to ATV consumers. Sitting in the No. 8 spot on the KBB.com list of Most Researched ATV Brands (2016 model year) in 2017 is CFMOTO. Of course, Polaris remains king of the hill on the KBB.com list, and a host of other ATV manufacturers with decades of manufacturing success behind them are out in front of CFMOTO, but it’s a start for the China-based manufacturer with U.S. operations in Plymouth, Minnesota.

Further testament to the brand’s growing stature is another data point from the Dec. 26, 2016, edition of Powersports Business that shows the Top 10 ATVs based on value retention. Among 2-year-old models, the 2014 CFMOTO CForce 500 ranked No. 2 at 76.6 percent, with the retention based on Kelley Blue Book’s suggested used retail values and the original MSRP. The 2014 Polaris Sportsman 800 EFI was No. 1, at 77.5 percent. Four other Polaris models and four Honda models rounded out the top 10 list among 2-year-old models.

And while dealers have been known to capitalize on the brand’s side-by-side lineup, it’s safe to say that dealers are interested in CFMOTO ATV models as well. In fact, chief financial officer Eric Fan told Powersports Business that wholesale sales of CFMOTO ATVs were up 30 percent in the first quarter of 2017 compared to the same period last year.

“The quality and price point are really proving to be attractive to both dealers and consumers,” Fan said. “It’s affordable quality, and models like the CForce 500S EPS are really doing well. We were very excited to see that the CForce 500 Classic made the list. It holds up, and it builds dealer confidence in our products. It’s all about low MSRP and high quality bringing in a high sales volume. It’s practical for a dealer.”

The CFMOTO CForce 400 has been a strong seller with a $4,199 MSRP.

In fact, the CForce 500S EPS, with a $5,199 MSRP and a torque-y 495cc engine, sold out since the factory in Hangzhou, China, sent its initial order to the U.S. last year.

The 2-up ATV offerings by CFMOTO also have been selling strong, Fan reports, offering that despite the recent side-by-side trends, there are plenty of buyers who prefer to ride 2-up on ATV rather than get into a side-by-side.

In November, Synchrony Financial began providing consumer installment financing for consumers on all CFMOTO products sold in the U.S.

Those prime credit-score customers have been receptive to the Synchrony program, Fan said. 

“This exclusive agreement with CFMOTO allows us to provide financing options for its customers wanting to take their dream products home on the same day,” said Glenn Marino, executive vice president and CEO, Payment Solutions, Synchrony Financial. “The ability to provide financing is important for dealers to enhance the shopping experience and to grow their business.”

Meanwhile, a floorplan financing agreement with Northpoint Commercial Finance launched in 2016 has also assisted with CFMOTO’s growth and has pointed dealers in the right direction, Fan said.

“We are excited to bring CFMOTO a world class inventory finance program that provides dealers with flexible financing solutions. In addition, our online inventory management system allows dealers to manage their business easily and efficiently from anywhere while providing data and analytics to help grow their businesses,” said Dan Radley, Northpoint’s CEO.

Add it all up, and CFMOTO is charging nicely into the 2017 off-road riding season.

“We don’t even have all of dealers on-boarded yet with the financing partners, so we still have room to grow,” Fan said. “Some dealers in our stronger areas have longstanding relationships with their local credit union, so it’s another way to add affordability for the customer.”

In its first quarter ever with both wholesale and retail financing partnerships solidly in place, CFMOTO is finding that ATV sales are trending upward. 

 

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