May 2008 - Feature
3 Products Primed for Powersports
Some of the automotive industry's best F&I products actually make more sense for powersports dealers and their customers. Industry insider explains how tire and wheel, GAP and theft protection can increase your bottom line.
By David Duncan
Powersports dealers have proven to be
a powerful collection of engaging and knowledgeable business owners whose
successes have required the ability to change and adapt. Sometimes, that means
the answers are right in front of them. That’s why powersports dealers don’t
need to reinvent the wheel when it comes to offering finance and insurance
(F&I) products to their consumers.
With many successes and many
mistakes along the way, auto dealers have spent 40 years developing the F&I
business model. Today’s consumer-friendly, full-disclosure presentations allow
consumers to make their own choices. Powersports dealers have the advantage of
applying these best practices to not only produce significant profits, but to
also create a win-win situation for both themselves and their consumers. With
the right partner, many F&I products can easily be adapted for the
powersports business model.
For example, window etching
wouldn’t be a feasible product in the powersports market, but parts marking is
a popular theft deterrent. GAP total-loss protection is another core F&I
product for powersports, especially with some motorcycles costing more than an
entry-level car. Road hazard protection is another product that’s gained in
popularity this decade. Much of that is due to the cost of tire and wheel
replacements, which are not covered by manufacturers’ warranties.
In addition, many distributors and
administrators of F&I products realize the difference in selling
environments between auto and powersports. Not every dealership has a dedicated
F&I manager, so many F&I product transactions are completed by the
sales staff.
Although not having an in-house
F&I department can pose a challenge, administrators have developed sales
strategies to integrate F&I products into the sales process. Many sellers
and administrators can easily customize tools for dealership sales staffs,
including how to make the sales presentation and objection-handling strategies.
However, most dealers, large or small, find they have much higher F&I profits
when they establish a dedicated F&I department.
Almost anyone who touches
powersports F&I is familiar with service contracts and maintenance.
However, for this article we’ll take a look at how powersports dealers can take
advantage of theft protection, GAP protection and tire-and-wheel road-hazard
protection.