Ross Motorsports is setting its sights on forming “good relationships” with lender partners, in order to prevent customer flipping, Finance Manager Ryan Williams told Powersports Finance.
About two out of every 10 customers at Ross Motorsports are flipped to a different vehicle brand, due to a lack of “diverse lending” from the dealership’s financial partners, Williams said.
“Each brand has their own lenders, and each lender pulls from their own credit bureau,” Williams said. “So the weird thing is, I might have a customer come in to buy a Honda [vehicle], and I submit through Honda Financial Services,” but Honda Financial isn’t able to approve the loan, he said.
“So then we try to flip the customer to an Arctic Cat or Yamaha [lender partner] that pulls from different bureaus, so that customer may be able to get approved with them,” Williams said. “It happens more times than not, that they will come in for a particular brand, and we end up putting them on another brand of ATV because they were unable to get approved.”
What’s proven successful for Ross Motorsports lately is maintaining “good relationships” with its lender partner’s employees in order to prevent customer flipping, Williams said. “You should know them [the lender’s buyers] by name and know them by the voice,” he said.
Oftentimes, when a consumer comes into the dealership to finance a vehicle and they are really close to getting approved by the lender, what’s worked well for Ross Motorsports is to be able to call the buyer at the financial institution, he explained.
“If you already have relationship with them, and you sit down and talk them through why you think this person should be approved, sometimes you can actually — maybe with another $500 down — you can actually get the underwriter to go ahead and approve deal,” he said. “I think that’s going to be huge going forward, is just building relationships with your buyers.”
The Lufkin, Texas-based dealership works with five powersports lenders, and sells Arctic Cat Inc., Yamaha Motor Corp., and American Honda Motor Co. brand vehicles.Like This Article