American LandMaster, an off-road utility vehicle manufacturer, seeks to increase the number of months it offers dealer partners with free floorplan financing to six months — up from its three-month offering — in an effort to remain competitive, Marketing Director Eric Hall told Powersports Finance.
“As we add new dealers, we have more dealers that are coming to us purchasing units, and we need to increase the available flooring that we have with all of our suppliers so that we avoid reaching flooring limits,” Hall said. “We have more and more dealers, and we are thrilled to — for a certain period of time — cover all the flooring charges for them. It takes away some of the risk for the dealer,” he added.
American LandMaster currently offers three months of flooring at no charge to the dealer, after that time — if the dealer has not sold the units — the dealer takes over the flooring payments, Hall explained. However, the OEM’s hope is that the units sell within a month or two.
“The challenge we face sometimes, and it comes back to the dealer, is the continued competitive challenge over offering our dealers competitive financing terms — the length of time we will cover flooring charges for them,” Hall said. “That’s a competitive back and forth with us and other UTV manufacturers. Can you match what someone else is doing? Can they match what we are doing? We hear that regularly from dealers in the UTV market.”
To that end, American LandMaster is considering upping the flooring limit to six months, Hall said, to better serve its dealer partners and remain competitive. The UTV maker works with Wells Fargo Commercial Distribution Finance and Northpoint Commercial Finance for wholesale financing, as well as Sheffield Financial for consumer financing.
Separately, American LandMaster announced plans in early May to expand its operations in Indiana, creating up to 67 new jobs by 2020, according to a company press release. The company will invest more than $4 million to lease a 112,000-square-foot space in Columbia City, which will serve as the company’s headquarters and will accommodate the consolidation of American LandMaster’s manufacturing operations in Roseland, La., and Fort Wayne, Ind. Production will begin at the new facility in September.
American LandMaster has built and distributed more than one million American-made utility vehicles. The company works with approximately 200 dealers in North America.