Brammo Offers Guaranteed Trade-in Program

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Here’s some EV news for yah: Brammo has announced a guaranteed trade-in program for its electric motorcycle offerings, which basically says that if you buy a new Brammo motorcycle between now and the end of September 2013, the Ashland, Oregon company will guarantee that bike’s trade-in price (for another Brammo motorcycle of course) to be at the original MSRP for the next 12 months.

The move is an interesting one, as unlike its petrol-based counterparts, Brammo and other electric motorcycle manufacturers are facing rapid changes and growths in their product landscapes. Not only are these companies maturing themselves, but the technology that drives them (literally and figuratively) is continuing to evolve at a rapid pace as well.

Whereas in other technology based consumer goods businesses, the consumer has to understand that the item they are buying will be obsolete in just a couple of years (a few months in some cases even), but Brammo is hoping to allay those fears with basically giving Brammo owners a no-risk upgrade option, should a more advanced model come from the EV manufacturer.

This program also serves to help bolster Brammo’s used motorcycle market. With only a small number of machines on the road, used prices for electric motorcycles have been weak, with second-hand owners concerned about battery pack longevity. As such, we imagine that Brammo’s “Guaranteed Trade Program” will boost used Brammo prices back to figures seen normally on the dealer showroom floor — a win for new-bike buyers.

The trick here of course is whether Brammo will debut any real new models between now and September 2014. Given the product cycle we’ve seen from the company, with models announced well in advance of their arrival, it is easier than normal to see what is coming down the pipe from Ashland. But than again, maybe changes are afoot, and Brammo will surprise us this fall during the motorcycle trade show season.

What will be interesting to watch in the next 12-months’ time is how the Brammo used market reacts to the loss of the Guaranteed Trade Program, as one would expect prices to drop suddenly in the used EV bike market. We’ve got 12+ months to chew on that economics question though.

Source: Brammo