The biggest challenge dealers face today in the industry is too much aged inventory and non-current models, Steve Chavez, senior manager of credit services at Kawasaki Motors Finance Corp., told Powersports Finance, which is why dealers should strengthen marketing and sales efforts to help move units.
“Putting out ads and marketing campaigns are obviously good ideas,” Chavez said. “I also encourage dealers to pay sales people commission if they do well in their jobs, like selling out aged inventory.”
Separately, Chavez noted that some big banks are likely to leave the powersports space because they don’t see huge profitability in “such a niche market.” Auto portfolios usually accounts for much more volume than powersports portfolios, he said. In addition, banks and captives tend to stick to “what they know.” Since auto captives vastly outnumber powersports captives in the United States, there is less competition in the powersports industry.
The Foothill Ranch, Calif.-based company is the dealer wholesale financing arm for parent company Kawasaki Motors Corp. USA and currently provides inventory financing to more than 1,000 dealers in 49 states; it operates regional sales offices in New Jersey, Georgia, Texas, and Kentucky.
For more insights like this, attend the third annual PowerSports Finance 2017 conference, which is slated for Oct. 24-25 at the Wynn Las Vegas. The full agenda can be viewed here. To learn more — or to register — for this year’s event, visit the PowerSports Finance 2017 homepage here.Like This Article