Kawasaki Motors Finance Corp.’s wholesale finance volume has experienced “modest growth” in the past year, thanks to U.S. economic improvement and the captive’s “extraordinary marketing team,” Steve Chavez, manager of credit services, told Powersports Finance.
“The marketing team puts out ads and campaigns constantly, and the sales team offers incentives like free flooring for dealers, which I think has helped boost the wholesale volume,” he explained.
Kawasaki’s dealership network also remains stable, he added. “Some dealers are coming in, while some are dropping off — not necessarily because they are not doing well, but because some [dealers] want to retire after a successful career,” he said.
The Foothill Ranch, Calif.-based company is the dealer wholesale financing arm for parent company Kawasaki Motors Corp. USA, providing inventory financing to more than 1,000 dealers in 49 states. Additionally, it operates regional sales offices in Georgia, Kentucky, New Jersey, and Texas.
Separately, Kawasaki is preparing to cut curtailment charges — fees for not moving enough product — from October through March to offset what is typically a slower selling season, he said.
“We don’t charge dealers curtailment during slower selling season because we want to bring down the motorcycle price to its market value,” he said, adding that Kawasaki reduces curtailment fees each year.
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