Selling aftermarket products such as insurance or extended warranty provides dealerships with extra profit on a deal and lenders with a larger amount financed, which is why BMG Xtreme Sports is developing a new sales strategy to incentivize consumers.
Specializing in Polaris Industries off-road vehicles and Indian motorcycles, the Laredo, TX.-based dealership recently began selling aftermarket products, but has found that its customers have been reluctant to get further financing beyond the traditional loan.
“A lot of our customers are like, ‘No, it’s fine, I’ll worry about it later,'” Finance Manager Megan Rodriguez told Powersports Finance. “As a dealership, we are trying to figure out how we can make it a necessity that they need to worry about it right now as they are getting the unit.”
Part of the way that BMG is planning to bolster sales is by developing a new sales strategy that will take the customer from initial contact all the way to the F&I office. The dealership’s first step was in hiring new staff to its sales team.
Previously, the team at BMG consisted of the finance manager, a parts manager, and one sales rep, so it was “all hands on deck” when the sales floor got busy. Earlier this month, new members were hired to the sales team, and while no changes have been made yet, the team is working on a new sales process.
“When you buy a car and they tell you this is already included in your contract, you don’t have to worry about it,” Rodriguez said. “But, when they come to powersports, they are like, ‘Well, do I really need it?’ That’s what we are trying to establish right now.”
BMG works with several lenders to satisfy a full credit spectrum of clients but primarily works with Synchrony Financial, which provides exclusive finance offers for Polaris brands and vehicles.