While typically customers get financed after they have found their vehicle at the dealership, indirect lenders who utilize digital pre-approval can drive origination growth by engaging earlier in the process, Bernie Brenner, chief executive of Rollick Outdoor, told Powersports Finance.
“A lot of these lenders don’t have that online application capability,” Brenner said. “They still are only waiting for the dealer to submit, which makes more work for the dealer. We believe that we can move their process earlier prior to the consumer walking into the dealership and when that happens, you’ll see the loan originations go up for those lenders. They can do that through our platform.”
Rollick is a powersports buying program that offers special discounts and integrates with online buying portals for dealerships. The company partners with affinity groups such as Progressive and Walmart, and provides widgets on a dealer’s website that allows members of those affinity groups to receive discounts on their vehicles.
Rollick can also help costumers get pre-approved for the loan by pointing them towards lender partners. Though Rollick is still in the process of signing on powersports lenders, the benefit to lenders is that they will be notified when a consumer is searching for a new vehicle online, thus allowing them the opportunity get that consumer financed before they enter the dealership.
“Ideally, you would want a customer to walk in and say, ‘I already know I’m pre-approved through Sheffield or Synchrony or wherever,'” Brenner said. “It’s better for them to get customers pre-approved earlier in this process because it’ll bring the consumer, and the dealer doesn’t have to do much else now. If it was all done electronically, the dealer says, ‘Oh great, now let me put the VIN in,’ and they are good to go versus asking the consumer to fill out the application now, and the dealer has to submit it and then it has to get disposition off of that.”
That’s not to say that there aren’t options out there for consumers looking for pre-approval. Lightstream, a subsidiary of SunTrust Bank, offers direct financing by having consumers enter their loan amount and terms online.
Don’t let opportunity ride by. Join us for PowerSports Finance 2018 on Nov. 6-7 at the Omni Fort Worth. Early registration ends this Friday, September 28th at midnight, so be sure to register here. Go to www.powersportsfinance.net for more details.