Posts Tagged ‘F&I’

Credit Crunch Keeps Lid on Dealers

November 2, 2009

JoeDelmontIf you’re waiting eagerly for 2010 to bring your business a boost, I’ve got some disappointing news for you. There isn’t going to be a big industry turnaround next year, and your friendly local lender probably isn’t going to give you as much money as it has in the past. Tight credit — in both commercial and retail segments — is going to keep the lid on spending and will continue to make it tough to run a business.

Even if lenders decide to turn on the money machine, there are indications that consumers aren’t willing to take on any more debt. That means if your prospects can’t pay cash for a new machine, they’re probably not going to buy one.

Let me be clear about this: I don’t think that the motorcycle industry is going away, and I don’t think that riders have lost their passion for the sport. I do think, however, that the salad days of fast sales and gushing credit that we’ve enjoyed for the last half-dozen years are gone for a long, long time.

Don’t look for any improvement until 2011 at the earliest, unless the credit (more…)

Without Credit, and Clueless

October 3, 2009

j0309203“What do you mean I don’t qualify for a loan? I can easily make the monthly payments. My motor home was just repossessed a few weeks ago.”

Ever hear something like that?

David Damron, owner of Chaparral Motorsports in San Bernardino, Calif., has — many times. “People got some excess cash, so they think they can finance,” he told me in August. “And they seem to have somehow forgotten about the two repos. It’s unbelievable the amount of people that are coming in filling out credit apps that are in the high 400 scores and wanting to know why they couldn’t get financed because they’ve got the cash flow now because they’re obviously not having to make the payment on the boat or the car or the truck. They don’t understand.” (more…)