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Compliance

Got Compliance Headaches?

I don’t know about you but Fall in my household means allergy season which means sneezing and headaches. While we love the cooler weather, sports and other activities, outdoor adventures come with some challenges. Fortunately, a little prevention and some good habits help us manage the effects.

For our powersports dealers, you might feel the same way about compliance! The paperwork, the details, the disparate federal, state and local regulations might cause widespread headaches for your team. But just as I deal with my allergies, some good habits can really minimize the impacts for your team.

If you think you’re immune from compliance regulations because the Federal Trade Commission announced that powersports dealers were exempt from the Combating Auto Retail Scams Rule (CARS) – think again! There are several other federal regulations as well as state and local compliance rules which apply to powersports dealerships.

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.

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.