Credit union revs up loans for Segways

Salt Lake Schools Credit Union has become one of the first financial institutions in the country to offer financing to members who want to purchase Segway Human Transporters.

Steven C. Andersen, president of SLSCU, said the 5,000-member credit union is not trying to be edgy. For Andersen, it was just an idea that made sense.

"It's like buying a car," he said. "You can go to a dealership, find the car you want, arrange the financing and buy the item."

At $4,500 per unit, Segways are expensive enough that some people may need financing to start rolling, said Andersen and Segway of Salt Lake co-founder Daniel Mauer. Segway of Salt Lake also offers leasing to businesses through KeyBank.

"People can buy them using their credit cards, but at almost $5,000, some people won't be able to do it," Andersen said. And, given the demographic groups (excluding businesses) to which the Segway may prove most popular — college students and central city residents — financing may open some doors.

Salt Lake Schools Credit Union's field of membership includes residents of Salt Lake County, as well as employees or students at any educational facility in Salt Lake City. Andersen said the process for financing a Segway is just like financing an auto purchase.

"You go down to Segway of Salt Lake, fill out a short credit application, which gets sent to us," Andersen said. "We'll close the loan here, and off you go."

The program, launched within the last 30 days, hasn't gotten any nibbles yet. But Mauer said the interest in Segways is still gathering steam. People have come from surrounding states to try them out at Segway of Salt Lake's sister company, MagicScooter.com, which has a location at The Gateway that features a 7,000-square-foot indoor driving course (expected to be ready for use this Friday). Segway of Salt Lake has sold 30 units in the last seven weeks, Mauer said.

"The response has been unbelievable," he said. "For the people who are using it in their work, or to get around in places that they wouldn't normally be able to get around in, it's invaluable."

Segway of Salt Lake is one of a handful of authorized dealers nationwide. The next closest dealers are in Milwaukee, San Diego and Houston.

The company issued a recall of 6,000 Segways in late September, after it was discovered that the unit could tip forward when batteries were low and the rider required a sudden burst of power.

Segways were equipped with signals warning of diminished battery power — a battery level indicator, alarm, warning light and vibrating handlebars; but after three riders reported falls the company upgraded the recalled machines with software that alerts the rider earlier to low battery levels and shuts the machine down before power levels cause problems.

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