LAS VEGAS — There is work that needs to be done in improving data-entry capabilities for dealers, said Brad Van Horn, owner of Buy Your Motorcycle, because lenders who require additional keystrokes to get a consumer financed might cause dealers to port their business to the lender’s competitor.
“The challenge for us is technology, and really what it comes down to is key functions and managing our approvals by our lenders,” Van Horn told attendees at PowerSports Finance 2016. “We are getting everybody approved pretty much, but the question is are we getting everyone approved in the best manner possible?”
If a lender’s application process requires more keystrokes than a different lender partner, Buy Your Motorcycle may need to “shortcut” and send the consumer to the lender’s competitor, he explained. “So that’s one of our main issues when it comes to financing, is just the amount of labor it takes.”
For example, if a dealer has to go through seven different dealer portals for seven different lenders to try to get the customer the best financing opportunity, that’s a “huge” problem for the dealers, he said. If Buy Your Motorcycle sells 12 units on a Saturday, and has a consumer that will take two and a half hours in data entry to get approved, “that’s a stop sign,” Van Horn said, because it can slow business for the dealership.
In order to make everybody’s life easier, lenders need to implement technology to use less portals so that dealers can send them more deals, he said.
Arlington, Texas-based Buy Your Motorcycle specializes in the buy, sale, and trade of new and used motorcycles and other on-road powersports vehicles. The dealership has 14 financial partners as well as an in-house financial provider, CAR Financial Services.