Scooters For Less


 

February 2012
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Benefiting from scooter-mania

Dealers run out of stock, and insurers see rise in policies sold
By Carol Fletcher

of The (Hackensack, N.J.) Record

HACKENSACK, N.J. — Call it scooter-mania.

Skyrocketing gas prices and warm weather have triggered a buying frenzy of highly fuel-efficient scooters that has emptied most dealers and increased sales of scooter insurance policies.

What’s drawing customers to the two-wheel side is their high gas mileage: Small-engine scooters — those with 50 cubic centimeters — can get up to 100 miles per gallon; larger ones — 650 cc — get 50 to 70 miles per gallon.

Paramus, N.J., resident Joe Tramontana, 48, drives his new Vespa, rather than his Nissan Armada, to his job in Tenafly, N.J., and uses it to take his 12-year-old daughter to her day camp. The Armada was costing him $120 a week to fill the tank; the Vespa, $7 every couple of weeks.

“They’re a lot of fun to ride, and the gas prices are ridiculous,” he said.

Dealers say interest in scooters and small to medium-size motorcycles, which also get higher gas mileage, began in May when gasoline prices approached $4 a gallon, where prices have remained.

Engine size in scooters is measured in cubic centimeters, ranging from 50cc (they can get up to 100 mpg) to about 650 cc (they can get about 50 miles per gallon). Costs range from $1,899 to more than $8,000.

Top speeds for scooters vary based on make and model, but dealers say the 50 cc can reach around 40 mph, the 150 cc between 60 and 70 mph and some 650cc can exceed 100 mph.

“We have not a one,” said Edgar Luzunaris, sales manager for Ramsey (N.J.) Motorsports. “People keep coming in and saying they want to save on fuel, but they’re a couple months late on the idea.”

It’s the same story elsewhere: The normally less-popular vehicles dealers stock in small numbers are in high demand. Manufacturers didn’t anticipate the rush, so dealers have been unable to bring in new stock. Dealers say they are increasing next year’s orders for scooters and small to medium bikes.

Auto insurers that offer motorcycle policies also are seeing sharp increases in the number of new scooter policies sold this year compared with previous years.

Bergen Sportcycles in Lodi, N.J., said June’s scooter business was up 60 percent over June 2007. Ramsey Motorsports said sales jumped 30 percent in the second quarter and 24 percent in the first over last year. At Pompton Honda in Pompton Plains, N.J., scooter sales rose 15 percent in the first two quarters.

Auto insurers are seeing a ripple effect. Allstate Insurance Co. in Roanoke, Va., had a 94 percent surge in new scooter policies in New Jersey between April and June of this year compared with the same time in 2007. The Progressive Corp. in Mayfield Village, Ohio, saw an 80 percent jump from January to June over the same period in 2007.

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