Whenever buyers visit power-sports dealers, the first person they meet is the sales representative. He is responsible for showing them the latest models which are currently available in the dealer’s showroom. After the buyers have chosen a vehicle they wish to acquire; he refers them to the finance and insurance (F&I) department. The manager in charge of this department will review the terms of the vehicle sale with them. In doing so, he will prepare all the necessary legal documents for the customers to sign in order to complete the sales deal. He even arranges for a suitable loan scheme for them when they cannot pay in cash. Only then does he deliver the new vehicle to them after all the sales formalities are over.
F&I products and schemes powersports service providers offer to customers?
The finance and insurance (F&I) department’s manager plays an important role in any power-sports dealership. He generates additional profits for dealers over and above the commission they receive from the vehicle sales. This is why many dealers outsource this vital business function to reliable service providers specializing in it. It is a cheap option to hiring a suitable candidate to perform the role of the F& I manager in the showroom. The F&I vendors determine the creditworthiness of the car dealers’ customers. After doing so, they collect and scrutinize all of their credit reports. Only then do they arrange for a suitable loan scheme for them from a reliable bank or lending company. Service Providers encourage potential power-sports buyers to acquire any one or more of the following optional F&I products:
- Extended service contracts with flexible deductibles over and above the original factory warranties which vehicle buyers get from the manufacturers,
- Tire, wheel and rims protection as these essential vehicle components are regularly vulnerable to damage in the event of road hazards,
- Total loss protection program where customers get money to buy a replacement for their vehicles in the event of an accident,
- GAP schemes providing coverage to owners pay off their auto loans even in the event of theft or collision of their vehicles,
- Lifetime battery program which covers unforeseen costs owners incur at the time of replacing their vehicle batteries, and
- Attractive priority maintenance plans which power-sports dealers might sponsor in order to retain potential customers.
At the time of buying optional F&I power-sports products, buyers need to keep in mind the following factors:
- Do they actually need the optional products the F&I service provider is offering to sell them?
- The extra costs involved and
- Is the coverage of the optional products worth the costs?
Hiring the right service provider to sell attractive F&I products to customers can help power-sports dealers significantly increase their profits. This is additional to the revenue they earn as a commission from the sales of popular power-sports vehicles. The vendor can offer customers suitable GAP schemes, extended service contracts, tire protection, total loss, and battery life programs. However, the power-sports buyers need to consider whether they need these products and whether they are willing to pay extra for them in the process.
