Author: efgmarketing

Meeting in the Middle – Part 2

Post author By efgmarketing
Post date January 11, 2017

Contributing Author:
Glenice Wilder
Vice President
EFG Companies

In last month’s column, we introduced the topic of bolstering dealer relationships with lenders in the spirit of gaining more business for both parties, with a focus on lender challenges. This month, I’d like to focus on the dealer side of the desk.

So let’s consider the challenges facing dealers when working with their lender partners and steps dealers can take now to address those challenges. In February, I’ll talk in-depth about how both sides “meet in the middle” to build a productive and financially beneficial relationship for both lenders and dealers in the powersports market.

Change is here to stay

The powersports customer is changing. Today’s customer is younger, smarter, and faster. The millennial buyer has spent hours on the Internet researching the dealership, the bike, and often the financing options – before he or she ever sets foot in the showroom. Requiring labor-intensive paperwork and data entry won’t be tolerated by today’s customer. With this in mind, consider talking with your lender to evaluate how to work together to implement technology solutions that work on the dealership level. You’d be surprised how robust their technology can be.

Business Growth

Building Relationships with Lenders – Part 1

Post author By efgmarketing
Post date December 14, 2016

Contributing Author:
Glenice Wilder
Vice President
EFG Companies

Given the changing political climate, many powersports dealers are taking a “wait and see” approach to their 2017 planning. Whether you believe the market will grow or shrink, there is one area of your business you can improve – the relationship between dealer and lender.

During a recent powersports dealer conference panel, dealership owners and lenders shared their challenges when working with their counterparts. For many dealers, offering financial options is new territory. There is much to learn and every lender markets their products differently. Without a background in banking or finance, many dealer team members are uncomfortable with the financial side of the business. And then, there is the compliance minefield to consider. Compliance regulations indicate that a dealership must offer every product to every customer. If your team does not understand the F&I products themselves, explaining them to customers is challenging.

How can you bolster your relationship with your lender…and boost your financial acumen at the same time? In the spirit of bringing dealers and lenders together in the middle, I’d like to share some of the key issues and careabouts facing lenders today. Next month, I’ll address the challenges facing dealers. Then in February, I’ll talk about how both sides can meet in the middle to build a productive and financially beneficial relationship for both lenders and dealers in the powersports market.

Tags credit history, credit score, Dodd-Frank, EFG Companies, FICO, Glenice Wilder, lender relationships, Vantage Score

Compliance

Groundhog Days are Good!

Post author By efgmarketing
Post date November 10, 2016

Contributing Author:
Glenice Wilder
Vice President
EFG Companies

Recently I stumbled across the Bill Murray movie Groundhog Day. I was quickly drawn into the plot – weatherman Bill Murray is reluctantly sent to cover a story about a weather forecasting “rat” (groundhog!). This is his fourth year to cover the story, and he makes no effort to hide his frustration. Upon awaking the ‘following’ day, he discovers that it’s Groundhog Day again, and again, and again. Bill Murray is forced to repeat the same activities day after day.

While this occurrence seems horrible in real life, it is the perfect scenario in the F&I office. Work the deal. Close the deal. Repeat – the same way every time. The rules and regulations imposed by the FTC demand that powersports dealers offer the same menu of F&I products to every customer… every time. But there’s more to be said for consistency. Sometimes, it can mean the difference between boosting profitability or leaving money on the table. How do you ensure consistency with every sale?

Consistency can be difficult to achieve. Let’s face it, every sale is different: different customer – different financing requirements – different person closing the deal. The combinations can seem endless. But there are two areas within F&I that can deliver consistency every time.

Tags Compliance, Federal Trade Commission, FTC, Glenice Wilder