Financing the deal

Dealers can overcome retail hurdles in 2025 says Black Horse

The motorcycle trade has shown remarkable resilience, especially in the face of recent challenges. Over-supply in the market, more pre-registered Euro 5 bikes than expected, and broader economic worries have all impacted the industry. Early signs are of a stronger market in 2025, with exciting new models and positive economic news. However, as the headlines across specialist and local press have shown, a number of dealers have sadly had to close their doors over the autumn and winter season.

Retail finance provider, Black Horse, is actively working to help dealers tackle these issues head-on. It offers FCA-compliant, user-friendly HP and PCP packages that meet your customers’ needs. Additionally, it provides smart back-office data management and customer communication products, to address problems like static or declining sales and the glut of pre-registered stock.

Black Horse motorcycle finance manager, Matt Wellings, has been in the trade for more than 25 years, and he has seen the industry’s challenges from both sides. “Black Horse has been helping dealers help their customers with financial support for more than 100 years now”, he said. “I’ve seen a fair amount of change in the sector, but also in the way that we adapt. There are big regulatory changes that have come in, and we’ve taken a lead there, helping guide dealers through them.”

How does Wellings see the situation for the industry now, in early 2025? “We’ve seen a few dealer failures and that can create a negative mindset. We’re working with manufacturers and dealers, to build confidence back in the market and assist with the pre-registered stock resulting from Euro 5+ emissions thresholds. We saw almost double the normal registrations in December, and those bikes need to be moved. Manufacturers have mirrored their new bike campaigns into pre-registered bikes, to help with that. We have to deal with that as an industry, so the ‘real’ season can begin.”

Wellings also noted that PCP has become as popular as HP in recent years, because it suits riders who like to swap their machines every few years. “At the end of the agreement they can pay off the optional final payment and keep the bike, part exchange it at their local dealer, or hand it back to Black Horse, subject to certain conditions” he said.

Black Horse focuses on simplicity. “We don’t want complicated products that customers don’t fully understand,” Wellings said. “This can cause problems for both them and us down the line.”

And the same applies for dealers: the finance process can begin before the customer even visits the showroom. Black Horse offers online support tools, that let dealers easily integrate features like finance calculators into their websites. Potential customers can browse at home and work out what payments, deposit and loan term times would work for them.

Wellings emphasises the importance of making the finance process enjoyable. “A lot of our systems and processes are geared around convenience, so a dealer can propose the customer and get an instant decision in 96% of cases. This allows dealers time to prep the bike and customers time to sort out insurance etc. We enable dealers to send a link to the customer’s mobile device for the signing process, which they can do in their own time. Meaning the physical handover is just about the bike, making it more enjoyable.”

This is just the beginning of the relationship though. Maintaining customer relationships throughout the length of a deal is crucial, especially for PCP purchases. “Sales staff need to be able to contact customers nearing the end of their contracts to discuss new bike options” said Wellings. “We help dealers identify those customers, to enable their sales teams to say ‘I notice you’re coming towards the end of your contract, would you like to come in and see what’s available?’”

Wellings concludes with optimism: “Black Horse sees 2025 as an opportunity to confirm our position as market leader in the bike sector, delivering support and innovation through our nationwide team of account managers. There is optimism in our approach as we face into the coming season.”

If you’re interested in finding out more, speak to your local Black Horse account manager or visit www.blackhorse.co.uk/bike.

Black Horse
www.blackhorse.co.uk/bike

For the use of bike dealers and motor professionals only. Black Horse Limited. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered Number: 661204 England and Wales. Black Horse Limited is authorised and regulated by the Financial Conduct Authority.