In-House Teams and Common Problems in Finance Departments

Operating a boat or RV dealership can be challenging, and one of the biggest decisions you’ll have to make is whether to manage your finances in-house or outsource to a professional accounting firm. While a lot of dealers are immediately drawn to the internal route, there are some issues you should know about.

In this blog we’ll cover a few common finance department problems and solutions.

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Image of an in-house finance team reviewing charts.

Why Do Dealerships Try Inhouse Financing?

Boat and RV dealerships often try in-house financing because it makes a lot of sense on the surface. One of the perceived perks is the increase in control. When a boat or RV dealership offers in-house financing, they have more control over the financing process. This means that they can set their own interest rates, terms, and conditions, which can be tailored to the needs of their business and their customers.

By having control over the financing process, dealerships can also ensure that their customers have a positive experience and are more likely to return in the future. This can help to build a loyal customer base and increase sales over time.

On top of the control, there’s the appeal of increased revenue and profits. By offering financing directly to customers, dealerships can earn interest on the loans they provide, which can be a significant source of revenue. In addition, dealerships can often charge higher interest rates and fees than traditional banks, which can further increase their profit margins. While this may not be the best option for customers, it can be a profitable business strategy for dealerships.

In-house financing also lets you reach customers who may not otherwise qualify with traditional loans. By providing financing directly to customers, dealerships can offer more flexible terms and conditions that are tailored to the needs of these customers. This can help to build a loyal customer base and increase sales over time.

However, that’s where the benefits end. And in most cases, the challenges outweigh these surface-level perks.

Outsourcing your finance department with Finance Solution can actually drive business growth. Not only can we reduce costs, but we have a proven record of securing approvals that other providers simply can’t.

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Common Problems in Finance Departments Occurring With an Internal Crew

While there are many benefits to having an in-house finance team, there are also some problems and negatives to consider. In this article, we’ll explore some of the downsides of having an in-house finance team when you run a boat or RV dealership.

1. Cost

One of the biggest downsides to having an in-house finance team is the cost. When you have an in-house team, you’ll need to pay for salaries, benefits, and office space. Additionally, you’ll need to invest in software and technology to ensure your team has the tools they need to do their jobs effectively.

If you’re a small or mid-sized dealership, these costs can be substantial and eat into your profit margins. It may be more cost effective to outsource your finance and accounting needs to a professional firm that can provide the same level of service at a lower cost.

2. Expertise

Another problem with having an in-house finance team is the level of expertise you can expect from your staff. Unless you’re willing to invest in a team of highly trained and experienced professionals, you may find that your staff doesn’t have the skills or knowledge necessary to handle all of the financial tasks associated with running a boat or RV dealership.

This lack of expertise can lead to mistakes, missed opportunities, and lost revenue. By outsourcing your finance and accounting needs, you can tap into a team of professionals who specialize in this area and have the expertise and knowledge necessary to help your business succeed.

3. Turnover

Turnover is a problem in any industry, and it can be particularly challenging in the boat and RV dealership world. When you have an in-house finance team, you’ll need to manage turnover and find new staff members to replace those who leave.

This can be time consuming and expensive, particularly if you need to train new staff members and get them up to speed on your dealership’s unique financial requirements. When you outsource your finance and accounting needs, you can avoid the costs and headaches associated with turnover and ensure that your finances are always in good hands.

4. Lack of Flexibility

Another problem with having an in-house finance team is the lack of flexibility it provides. When you have an in-house team, you’ll need to manage their schedules and workloads, which can be challenging when you have seasonal or other fluctuations in business.

By outsourcing your finance and accounting needs, you can leverage a team of skilled professionals who can adjust their services to meet your needs. This provides you with the flexibility you need to manage your finances effectively and ensures that you always have the support you need, when you need it.

5. Limited Resources

Finally, when you have an in-house finance team, you’re limited in terms of the resources and tools available to you. While you can invest in software and technology to help your team do their jobs, you may find that you don’t have the budget or expertise necessary to make the most of these resources.

What’s the Solution? Finance Outsourcing, of Course!

While there are benefits to having an in-house finance team when you run a boat or RV dealership, there are also some problems to consider. By weighing the pros and cons of having an in-house finance team, you can make an informed decision about the best way to manage your dealership’s finances.

Ultimately, the decision of whether to have an in-house finance team or outsource your finance and accounting needs will depend on a variety of factors, including the size of your dealership, your budget, and your unique financial requirements. By carefully weighing the pros and cons of each approach, you can make the decision that’s right for your business.

If you do decide to outsource your finance and accounting needs, it’s important to work with a reputable and experienced firm that specializes in the boat and RV dealership industry. At Finance Solutions, we offer competitive financing options for recreational vehicle dealerships that saves money when compared to a conventional internal financing department. Contact us today to learn more!