Compliance | Powersports Switchback

Contributing Author:
Glenice Wilder
Vice President
EFG Companies

Compliance is becoming a bellwether topic. Don’t believe me? Consider these three specific points. The Department of Defense released new guidelines in August regarding the Military Lending Act, which could have specific impact on powersports lending. And government agencies are known for looking out for their communities. Secondly, this year has seen a flurry of lenders entering the powersports market. Compliance is a requirement for all lenders – and new lenders will only partner with those dealers who have a compliance process. Thirdly, compliance was one of the hot topics at this year’s Powersports Finance Summit. So like it or not…compliance is here to stay for powersports dealers.

That being said, it’s time to ask yourself:

Are my F&I practices up to speed in the event of a compliance audit?
Is my team prepared for a detailed review – without sacrificing productivity?

How can you prepare your team for a compliance audit?

Let’s review a few pointers.

Organize your deal documentation. Create a checklist to put in the front of each jacket, and organize the paperwork according to the checklist. You’ll quickly see what’s missing – before the auditor spots the error.

Contributing Author:
Steve Roennau
Vice President
Compliance
EFG Companies

Compliance is often considered a “dirty word” in the powersports F&I world. But let’s think about compliance in a different light. Let’s think about compliance as a business opportunity rather than a business hindrance. Let’s think about compliance as a way to generate more business – both from lenders and consumers.

2016 has brought a flurry of activity from new and current lenders in the powersports market. In some instances, these participants are traditional automotive lenders entering the powersports business to expand their business. In other cases, current lenders who were already servicing the powersports industry have seen their book expand significantly – both in terms of originations and total value. And powersports dealers have supported that growth by attaching valuable F&I products to these deals, boosting lender confidence.

For those lenders who are expanding from the automotive space into the powersports market, compliance has been a way of life for some time. New lenders consider compliance as a solid safety check. A savvy powersports dealer should consider consider compliance as table stakes. If we want more auto lenders to branch into the space, then we need to begin demonstrating compliance within the dealership. Having a compliance process will impress your lending partners and up your “good partner’ quotient.