{"id":60,"date":"2017-02-07T19:16:59","date_gmt":"2017-02-07T19:16:59","guid":{"rendered":"http:\/\/efgintelligence.com\/powersportsswitchback\/?p=60"},"modified":"2017-02-07T19:16:59","modified_gmt":"2017-02-07T19:16:59","slug":"meet-middle-part-3","status":"publish","type":"post","link":"https:\/\/efgintelligence.com\/powersportsswitchback\/2017\/02\/07\/meet-middle-part-3\/","title":{"rendered":"Meeting in the Middle – Part 3"},"content":{"rendered":"
\"Glenice
Contributing Author:
Glenice Wilder
Vice President
EFG Companies<\/figcaption><\/figure>\n

While the presidential election is over, the business climate remains murky. I have spoken to numerous powersports dealers and lenders over the past two months and the \u201cwait and see\u201d attitude remains.<\/strong> While some see lots of positives on the horizon in terms of fewer regulations, others voice concerns about rumors of rising interest rates and tighter credit. While we cannot directly impact government action, we do have control over how we conduct our own business.<\/p>\n

As we have discussed in the past two columns, there are some shared challenges faced by powersports lenders and dealers when working with their counterparts that truly impact the powersports industry. \u00a0The good news is \u2013 we can address these challenges by meeting in the middle to build productive and financially beneficial relationships, for both lenders and dealers in the powersports market.<\/strong><\/p>\n

As we step carefully into 2017, let\u2019s make the commitment to communicate more frequently, listen more intently and improve where we can. Regardless of which side of the fence you\u2019re on, let\u2019s see how both dealers and lenders can meet in the middle.<\/p>\n

Work With \u2013 Not Against \u2013 Each Other<\/h3>\n

The relationship between lenders and dealers should not be adversarial! In fact, it should be closely linked to ensure profitability \u2013 and to secure more customers. Rather than spending energy finger pointing, spend that energy understanding the challenges facing each other\u2019s business.<\/strong>\u00a0 There are enough outside forces creating roadblocks. Don\u2019t be part of the problem, be part of the solution.<\/p>\n

Dealers \u2013 take time to understand changes in the overall credit market. Lenders \u2013 gain an understanding of what manufacturers and consumers are requiring of their dealers. And see where there are opportunities to work together.<\/p>\n

The key to successfully working across the aisle with your lender\/dealer partner is communication as well as a willingness to understand each other\u2019s needs and challenges. Add in some proactive research and innovation and your chances of success are greatly increased.<\/strong><\/p>\n

Do Your Homework<\/h3>\n

For many lenders, the powersports market is new territory. And while there may be a few similarities with automotive lending, there are many unique aspects that set the powersports market apart. Before jumping into powersports, lenders must do their homework. Who buys powersports vehicles? What is the financial and credit landscape? But don\u2019t rely on Google. Talk with powersports dealers and consumers.\u00a0 Get a good sense of the market before developing your lending requirements.<\/strong><\/p>\n

For dealers, getting your loans bought doesn\u2019t have to be difficult. Take the time to meet with your lenders, discuss their requirements, and train your team. Also, offering F&I products<\/a> can actually benefit your lender relationships.<\/strong> Lenders may be more open to offering financing on a motorcycle that includes a vehicle service contract, as the F&I product has the potential to protect the loan. In the event of a vehicle breakdown, the customer\u2019s out-of-pocket expense is greatly reduced with a VSC, eliminating the question of whether to pay for expensive repairs or make their motorcycle loan payment. Before jumping into a full menu of products, take the time to understand your customers and your lenders to determine which products meet everyone\u2019s needs.<\/p>\n

What may be more important than homework is frequent communication between lenders and dealers. Products, credit terms, regulatory\/compliance requirements, and customers change.<\/strong> Set a standing meeting to discuss these changes. If your partners aren\u2019t providing the information you need, be proactive and ask for it.<\/p>\n

Be Innovative<\/h3>\n

One thing we can all count on is change. Rather than fight it, embrace change and demand that your partners do the same. Because, I guarantee the competitor down the street and the new Millennial customer has embraced change.<\/p>\n

This is another area that is ripe for communication between lender and dealer. How are consumers using technology to purchase powersports products? What improvements are available in the dealership space for securing consumer credit? Add this topic to your standing meeting. Share research and insights.<\/p>\n

We can\u2019t control the overall business climate. But we can control the health and profitability of the relationships we have with our partners and customers to make 2017 a successful year<\/strong> for both lenders and powersports dealers.<\/p>\n","protected":false},"excerpt":{"rendered":"

While the presidential election is over, the business climate remains murky. I have spoken to numerous powersports dealers and lenders over the past two months and the \u201cwait and see\u201d […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-60","post","type-post","status-publish","format-standard","hentry","category-business-growth"],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7NG7I-Y","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/posts\/60","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/comments?post=60"}],"version-history":[{"count":1,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/posts\/60\/revisions"}],"predecessor-version":[{"id":61,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/posts\/60\/revisions\/61"}],"wp:attachment":[{"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/media?parent=60"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/categories?post=60"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/tags?post=60"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}