You know your dealership needs to provide boat dealer financing options to buyers so you can move units off your lot. But what are the best ways to finance boats for customers? Let’s look at how to finance boats at your dealership to give your customers the financing options they want and need.
What Are Your Boat Financing Options?
When you provide financing through your dealership, you have two main options:
- In-House Financing: When you provide in-house financing, you have a dedicated financing and insurance (F&I) department in your dealership. In this department, F&I professionals work hard to secure loans and financing options that meet customers’ financial needs. This option requires a lot of in-house organization. You and your F&I professionals need to keep track of paperwork and maintain direct relationships with lenders. When you stay on top of your F&I services, you can offer loans and other financing options to your customers effectively.
- Outsourced F&I: When you use outsourced F&I services, you outsource your financing department to a company like Finance Solution. In this situation, the F&I outsource company handles all financing, insurance, and warranty options for you and your customers when you make sales. They maintain relationships with lenders, submit loan applications for approval, and clarify loan terms before you give them to customers. These outsourcing companies take the burden of financing off of your staff so you can focus on selling units and helping customers make selections.
Choosing between these two options takes careful consideration. Think about each option and how it would affect your dealership operations.
What Are the Benefits of Outsourced F&I?
Outsourced F&I companies offer many benefits that lead to easy boat financing. For example, when you outsource your F&I to Finance Solution, you gain access to our knowledgeable and experienced staff. We use our knowledge base to sort through lender offers for your customers to help them find the best loan amounts and payment periods for their financial situations.
We can also help you and your customers navigate different financing options for different types of boats. We make sure your customers receive boat loans with interest rates and monthly payments that they can pay off. Overall, a third-party F&I company lends you their expertise to help you and your customers make great financing decisions.
Are There Any Financing Options You Should Avoid?
Whether you keep your financing in house or outsource it, you should avoid having your customers finance their boat purchases with home equity. Home equity financing is when customers get loans by leveraging the equity in their homes. Equity is a home’s market value when it exceeds the owner’s current mortgage balance. Home equity loans for boats often end up having high interest rates that don’t fit customers’ needs. Also, they may not be available to customers with bad credit scores or other financial issues. It’s best to avoid home equity loans for boats because they often look like better deals than they are.
Why Partner With Finance Solution for Dealership Financing?
Partnering with us is a good idea because we are boat owners ourselves. We understand the investment that buying a boat requires, which is why we present your customers with financing options that fit their requirements.
We know what it takes to apply for a personal loan and use it to cover a boat purchase while fitting our financing needs. That’s why we maintain relationships with banks, credit unions, and other lenders. We want to ensure that your customers have access to the best loans for their needs and get them approved as quickly as possible.
Outsource Your Financing Department to Us
Eager to give your customers the best financing for their requirements, but don’t want to deal with paperwork? Would you rather someone else handle the financing and insurance for your dealership? If you answered “yes” to both of these questions, reach out to Finance Solution today.
We keep your financing services organized while accessing the right loans for your customers and getting them approved quickly. We offer our outsourcing services to keep your F&I services in order while you focus on moving units through your dealership’s lot.
