FORT WORTH, Texas — Listening to dealer feedback can help lenders improve their service and boost their bottom lines, according to finance- and dealer-executives who spoke on a panel at PowerSports Finance 2018.
“The dealers are the ones that have the more difficult job,” American Cycle Finance President Ben Donnarumma said at the event, which was held last month. For instance, he said, lenders, unlike dealers, don’t have to work with the different personalities one finds in a consumer environment. So, it’s important for lenders to take the lead in understanding the dealer and improving communication.
“The easier we make it on them, the easier we make it on us,” he said.
One of the big challenges, Donnarumma said, is that most dealers work with multiple lenders. And lenders all have their niches, he said, and all do business differently. Helping the dealer understand how the finance company operates can smooth the loan-application process.
It’s also important for the lender to understand how the dealer works. The powersports business can be seasonal, with fluctuating staffing level, and a dealer might not always have the personnel on hand who understands the “quirks” of the different lenders. Lenders should understand that on any given day they might be working with a dealer staffer with different levels of financing experience.
Sending more information to the dealers would also help, said Brad van Horn, owner of Buy Your Motorcycles, a dealer based in Arlington, Texas. Receiving numbers on look-to-book, deals submitted, and deals approved makes it possible for a dealer to send a lender applications that are more likely to be approved.
To learn more about how to improve the lender-dealer relationship, check out the video below