Fay Myers Motorcycle World takes a different approach to building its financial partnerships by focusing on establishing long-term relationships with smaller lenders, Jason White, general manager of Fay Myers Motorcycle World, told Powersports Finance.
“Our model philosophy is to build long-term relationships that benefit each other, not necessarily partner with the hottest and newest lenders,” White said. “We take a unique approach to what we do on the lending side.”
Powersports is a complex and unique business, and many dealers, as a whole, take advantage of lenders that don’t know what they are doing, White said. “I think lenders get involved in these cool concepts of how they will drive lending, and dealers find ways to push it — which is their job. They [the dealers] get a large mass of volume and end up buying deeper than they should and not maintaining the collections side of it. If you don’t have a good collection program and good underwriters, you put yourself in a position that will cause problems,” he said.
Building a relationship with the lender creates stability, which is more important than the bottom dollar, White said. “It’s a dog-eat-dog world and dealers look out for themselves instead of building a relationship [with the lender],” he added. “I would rather have less dollars per year but longer return.”
Greenwood Village, Colo.-based Fay Myers Motorcycle World is partnered with 13 manufacturers and more than one dozen lenders, with two more lenders on the roadmap for 2016, according to White. The dealership offers new and pre-owned vehicles across the powersports scale, including watercrafts, side-by-sides, ATVs, and motorcycles, among other vehicles.