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For the past five years, RV dealers enjoyed a wave of new business as a strong economy led millions to head to the great outdoors in an RV. However, like any boom, dealers are now facing a leveling off from the record growth. According to Richard Curtin, director of Consumer Surveys at the University of Michigan in the RVIA’s January 2008 business indicators report, this year will see a continued slide in sales – as much as 4.8 percent from the previous year. Yet the long-term growth of the industry is strong, with the report predicting 8.5 million RV-owning households by the year 2010.
For RV dealers, now is the time to add systems and processes that will lay the foundation for future growth and maximize current opportunities. Today, technology and the Internet are part of daily life. Most dealers have Web sites to advertise, schedule service appointments and communicate with customers. Many of their customers are also shopping online for financing. The Internet has fundamentally changed the way consumers research and buy products. Consumers no longer want to spend several days selecting and purchasing an RV. They expect the process to be quick and easy.
The Industry is Catching Up to Customer Needs
RV dealerships and lending institutions have been slow to adopt new technologies that can make the customer’s experience better – and the dealer’s experience more profitable. When a buyer is ready to purchase an RV, most dealerships still require them to fill out a paper application, then wait while the application is faxed to several banks for approval. Many times the buyer must return to the dealer one or two days later to finalize the financing and receive their new RV.
It does not have to be this way. There are F&I tools available today that bring the dealer into the 21st Century, giving customers a better experience, reducing errors for the dealer and maximizing profits. And with sales expected to be flat, or even declining, dealers will have to reduce overhead and maximize efficiencies, while preparing for future growth.
Open the Map – F&I Tools Get You Financing Faster
No matter which software system is put in place, selling RVs is, and always will be, a “people” business. The most important step in closing a sale is to tap into the buyer’s emotional investment in an RV and finalize the sale before doubts creep in. Using traditional F&I methods often required the buyer to wait more than a day for financing, leaving too much time for the customer to lose that emotional connection to the RV and change their mind.
Automated F&I tools, such as online lending portals, can overcome this problem by quickly securing financing and underwriting the loan the same day a customer decides to purchase the RV.
Today’s systems let the dealer enter customer data one time which then connects directly with all of a dealer’s lending partners, obtains an immediate loan decision and presents all of the qualifying financing options to the F&I manager. Within minutes, the F&I manager can work with the customer to select the option that best suits both the customer and the dealer. Instead of wasting a buyer’s time flipping through a folder of rate sheets, dealership staff can focus on building relationships with the customer.
Another benefit to automating F&I functions is that the time saved on paperwork gives the dealership more time with the customer to sell aftermarket products, discuss financing options and provide better service.
Pack the Right Equipment – F&I Automation Reduces Compliance Headaches
In addition to speeding up the approval process, F&I automation software can also simplify the many complex regulations and compliance issues dealers face. Today’s systems guide the F&I manager through all the required fields, providing checks and balances as well as verifying that all required data is included. F&I software also compares the loan data and deal structure against federal, state and local regulations, alerting the F&I manager to any possible pot holes before sending the application to lenders.
Software should do two things – speed up and simplify complex processes and reduce overhead expenses. In addition to reducing the time spent on applications, approvals and underwriting, F&I software automatically selects and provides dealers with all the documents necessary for each loan package – including the lender specific, state specific, dealer specific, and any after-market documents. Instead of maintaining libraries of documents for every situation that may arise, F&I managers may print the relevant documents from a laser printer, which dramatically simplifies the process at RV shows and in the office.
Leave the Wilderness – Starting F&I Software is Simple
Traditionally, dealerships have been reluctant to adopt F&I lending portals, because of the perception that the cost, integration headaches and training needs would outweigh the benefits of eliminating manual processes. This may have been true for the early portals that did little more than replace the fax with an electronic data submission to an individual lender. Today’s systems, however, overcome this misconception by integrating with the dealer’s existing management software and credit bureau system, and providing a much richer solution set for the dealership. Today’s solutions provide not only the efficiencies of a lender portal, but also aftermarket selling tools, a complete form set and even guaranteed compliant loan and regulatory documents. Many of today’s F&I lending portals are also Web-based, giving any dealership with desktop computers and an Internet connection the hardware needed to modernize the F&I office.
The future has arrived. Your business needs automation, and your customers expect the convenience of automation. Yesterday’s trend was an inflated staff and just enough software to get by. Today’s motto: keep a smart, lean staff and a robust software system to maximize your growth.
Free your staff from a wilderness of paperwork and give them the time to work directly with customers, creating financing options that are more profitable and secure for the dealership, while enhancing the purchase experience for your customers.
For more information, visit www.solex.com. John Walsh, CEO is available at john.walsh@solex.com.
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