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Business Growth

Building Relationships with Lenders – Part 1

Glenice Wilder Vice President EFG Companies
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.

Continue reading “Building Relationships with Lenders – Part 1”
Categories
Compliance

Groundhog Days are Good!

Glenice Wilder Vice President EFG Companies
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.

Continue reading “Groundhog Days are Good!”
Categories
Compliance

Will You Pass the Compliance Auditor’s Review?

Glenice Wilder Vice President EFG Companies
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.

Continue reading “Will You Pass the Compliance Auditor’s Review?”