MotoLease LLC has signed on 400 of its lessees to its new MotoCoin Rewards Program, Powersports Finance has learned.
The program, which was scheduled to debut in the first quarter, launched in July, and though more data is needed to build a true estimate, Managing Partner Emre Ucer expects 70% to 80% of lessees to use the rewards program.
MotoCoin incentivizes consumers by rewarding points for on-time payments and after 12 months, the consumer can have their monthly payment reduced.
There are a variety of ways to earn points, such as signing up for automatic payments or downloading the MotoLease mobile app. On-time payments will reward users with 1,000 points. At 15,000 points, consumers qualify for a repriced lease, which may upgrade them to a better credit tier and lower monthly payments. For their next purchase, it allows them to waive upfront fees and get approved for larger loan amounts.
“The customer says, ‘I showed them that I have better credit risk and they rewarded me for it,’” Ucer said. “So consumers really appreciate it, and they will be more likely to make their payments on time and stay longer with their lease.”
MotoLease typically divides consumers into six credit tiers. If a low-credit-score tier six consumer has a three-year lease and utilizes MotoCoin, they can potentially finish their lease at tier three, paying “significantly less,” Ucer added.