DF Capital helps increase Zero Motorcycles visibility in the UK
DF Capital has worked with Zero Motorcycles for the past two years and in that time has helped the business grow its dealer base, increasing its visibility in the UK.
Zero Motorcycles
Zero Motorcycles is a manufacturer of high-performance electric motorcycles, founded in in California in 2006. Combining the best aspects of a traditional motorcycle with today’s most advanced technology, the vehicles are lightweight and efficient and create a superior, silent riding experience for customers. Now very well-known internationally for both quality and performance, the company has a factory-run European HQ in the Netherlands, plus a growing presence in the UK where it is supported by a network of almost 20 dealers across the country.
What did Zero Motorcycles need?
Zero Motorcycles approached DF Capital as it needed a funder that could create a floorplan facility for all 18 dealers in its network and help it expand its presence in the UK. As a relatively new and small – albeit fast growing – business in the UK, it was a challenge to find appropriate financing.
How did DF Capital help?
By partnering with Zero Motorcycles, DF Capital created a funding solution for its dealer network. The main element involves a 180-day cost-free period which means that if the dealer sells the bike within this time, all of the income generated is profit. If they don’t, at the end of the cost-free period the dealer has the option to keep the bike on programme for up to 360 days in total for a monthly fee until the vehicle is sold. This allows the dealer certainty of minimal cash outflow whilst providing them with capacity to show, display and demonstrate a broader range of products, enabling them to sell more.
Results
Over the past year, DF Capital has provided £2m in facilities to Zero Motorcycle dealers. All 18 dealers are funded by DF Capital, on an exclusive basis, enabling the business to grow further, the dealers to improve their margins and make the brand more visible in the UK. The funding has also increased the number of demo units on show, enabling more potential consumers to try Zero’s range of high-end electric motorcycles.
Dale Robinson commented: “We have a great relationship with Paul Evans and the team at DF Capital. They created a bespoke financing package with us for our dealers. We are particularly pleased with the creativity and flexibility demonstrated to our dealers over the past year. DF Capital understands our needs and Paul really understands the market, so everything that is suggested is relevant and appropriate to our business. Recently he introduced us to one of his contacts in Manchester who subsequently became our 18th dealer in the country. It’s because of the true partnership approach that DF Capital operates that our business is going from strength to strength.”
Paul Evans, Industry Leader for Motorcycles and ATVs at DF Capital, said: “Zero Motorcycles is a very exciting brand. Electric is the next step in motorcycle evolution – the technology is becoming more accessible for the daily user and the market is becoming more competitive. We’ve helped Zero Motorcycles grow their dealers, compared with this time last year and we are equipped to help the company and its network grow even further. Dale and his team have a similar culture and values outlook to that of DF Capital so it’s easy to understand what he wants to achieve and how he plans to do this. It’s a privilege to be part of Zero’s journey!”
