PiaggioUSA’s “Test Ride”

PiaggioUSA is targeting scooter-curious customers with a 12-month “test ride” on Piaggio and Vespa scooters. While the deal isn’t entirely unreasonable, the name and description of the promotion are a bit of a stretch, especially “your dealer will buy it back,” which implies that the dealer will refund the cost of the scooter.

Here’s how it works: You buy the scooter with 10% down and a three-year loan from Sheffield Financial. After 12 months, if you’re current on the loan and don’t like the bike, the dealer will take over your loan and take back the scooter. As 2SB reader Pete Selkowe points out, you’re paying 43% of the MSRP, and none of that is being refunded to you. So you pay almost half the MSRP of a scooter to ride it for a year, if you don’t like it, the dealer’s stuck making your payments until they can sell it used. If the dealer can sell it used for more than what you owe, they make some cash.

There’s nothing reprehensible about it, it’s basically the same thinking as any automobile lease. It’s just not a good deal for most consumers, or the dealer (but good for PiaggioUSA and their financing company). If you have the resources to buy a new Vespa with cash (instead of with an expensive loan), and decide not to keep it, you could almost surely sell it privately a year later and get a better deal. If you can’t buy with cash, you could certainly secure a better loan elsewhere. The line “Customer is responsible for excess wear and mileage over 4,000 miles at $0.10 /mile” is also troubling, and if comprehensive insurance isn’t required for loan approval, you’d certainly want it, as with any financing deal (lest you’re still making payments three years after your scooter is stolen).

I’m very interested what dealers think about this. When I saw it, my first thought was “PIaggioUSA finally realizes they’ve oversaturated a shrinking market, and they’re trying to unload as many bikes as possible before they bail out of the U.S. in 11 months.” If I’m not mistaken, dealers do not get a cut of financing, so they’re just making their regular dealer margin, with the added risk of having to take it back and sell it at enough of a profit to cover two years of loan payments (probably at a reduced rate, but still…). Hopefully there are some sort of incentives to make it worth the dealers’ trouble, or maybe dealers hope it will lure customers to their shops, whom they can then talk out of the “test ride” deal.

Piaggio targets Continental Airlines

airportNo, Roberto Colannino isn’t looking to acquire another airline,* Piaggio USA is marketing directly to Continental employees in Newark, NJ as part of a Continental Airlines alternative-transportation program featuring designated scooter parking and giveaways. It’s actually a pretty neat idea, though it might be tough to implement on a wider scale.

*It’s easy to forget that the Vespa’s roots are in aviation. Piaggio Aero (an entirely separate company, but still bearing the Piaggio name) still makes airplanes. It’s odd that with all of the news about Colannino’s acquisition of Alitalia, that factoid never came up.

Tuk Tuk USA lineup features… Ape Calessino?

Ape Calessino or Tuk Tuk USA?

Jeremy Korzeniewski of Autoblog reported today that Tuk Tuk USA has “officially been granted both DOT and EPA approval for its line of Mitsubishi-powered three-wheelers.” Jeremy’s clearly a big tuk-tuk fan, he’s been following Tuk Tuk USA for about year, and he also posted an elegy for BajajUSA’s three-wheeer.
Continue reading “Tuk Tuk USA lineup features… Ape Calessino?”

How’s your Piaggio stock doing?

According to Reuters UK, Piaggio reported a 28% drop in net profit in 2008, which reminded us to check on our Piaggio stock: It’s at €0.95, an all-time low since Piaggio’s June, 2006 IPO at €2.30. Poor sales, a bad economy, and the weak Euro all hurt Piaggio last year, as did nearly €100 million in new debt from stock buybacks and a €.06-per share dividend last year, which will be offered again this year, which seems counterintuitive, but what do we know?
Continue reading “How’s your Piaggio stock doing?”

Chuck Mead’s scooterrific new video (is back!)

This might be the most scooterific video ever, and would you believe it’s a country song? Check out the new video from BR-549 frontman Chuck Mead: “I Wish It Was Friday,” featuring a Honda Cub, Vespas new and old, Genuine Buddys*, and more, plus lots of footage from East Side Scooters in Nashville.

As far as country songs about weekends, It’s hard to beat Robbie Fulks,’ but Robbie, sadly, doesn’t have a video full of scooters. I wandered into a BR-549 show at Tootsie’s Orchid Lounge several years ago, and that alone made Nashville my favorite city south of the Ohio and east of the Mississipi. (Thanks to Louie from Modern Vespa for the link!)

UPDATE: It’s back on YouTube!, thanks to KymCoJones for his behind the scenes videos and keeping us up to date on the progress).

* “Buddies” just never looks right in print.

Originally posted 2/15/09, updated on 2/25/09 when video was re-posted on YouTube

Dealer Expo 2009, Part I: Overview

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Every February, powersports dealers from around the nation descend on grey, shivery, boring Indianapolis to see what’s new in the industry. It’s a chance for manufacturers, importers, and distributors to wine and dine their dealers and hopefully round up some orders for the upcoming riding season. This was our third year at DealerExpo, though it was our first with actual 2strokebuzz press passes. Continue reading “Dealer Expo 2009, Part I: Overview”

Charles Karel Bouley has lots of green

I applaud you, Charles Karel Bouley. Hopefully typical Americans will take a break from job-hunting or digging for milk money in their hand-me-down couch cushions to follow in your green footsteps and buy two Piaggio MP3s. We’ll all slap some solar panels on our San-Francisco-area beach house/recording studios, too, while we’re at it. Thanks for making such a huge, inspirational sacrifice for America.

Vespa versus Venti

Don’t say it was unexpected (1, 2) but 2sb has learned that Piaggio has taken some sort of legal action against Hammerhead, the importer of the Venti 150 vintage Vespa lookalike. Our source tells us “Piaggio sent Hammerhead a cease-and-desist order in regards to the Venti yesterday.” We suspect it was actually a C&D letter rather than an order (there’s a difference) or if it’s based on the design of the Venti or the marketing language used in their flyer, but either way, domestic legal action against importers is usually a safer bet than an international legal contest, especially when China is involved. The good news for Hammerhead is that they’re raking in publicity leading into Dealer Expo (just a couple weeks away), so we applaud their market savviness , if not their design and engineering.

Racer Redding Road Legal On A Piaggio Zip 50

One of the most dramatic events of 2008 British motorsport was the victory by Scott Redding in the 125cc Grand Prix race at Donnington Park. Redding’s win ended an over thirty year drought for Brits in the One-Two-Five class as he set the record for being the youngest Grand Prix winner at about fifteen and a half years of age. MotoGP.com posted a nice report on the Gloucester lad passing his Compulsory Basic Training (CBT) test. Scott can now drive himself around on a scooter. I am fairly sure 50ccs of unbridled 2-stroke fury will make him feel a bit like he’s moving in slow motion compared to his Aprilia RSW125. But maybe he can get some help tuning the bike from his Team BQR mechanics. Mr. Redding is pictured on MotoGP.com while astride a Piaggio Zip 50 scooter. Scott races for Blusens Aprilia. As Aprilia is under the Piaggio umbrella of companies, I hope they set him up nicely with the ‘ped for free.