Febblog2 | Finance SolutionWhy Choose an Independent Dealer Financing Company?

Building out an internal financial services department brings with it major costs. When a recreational vehicle or boat dealership chooses this route, they must hire an internal staff and take on the additional risk of directly financing their products.

An internal F&I department is essentially a business within a business, requiring recruiting, salary, benefits and all other costs associated with having additional employees. Many dealerships imagine that the costs are worth it by claiming that an internal department will allow them to qualify more loans and provide faster service to their customers.

This statement isn’t entirely false. If a customer is left to their own devices and tasked with finding financing for their recreational vehicle purchase, it’s unlikely that they will get the best rates. All of this work might even push them away from buying a new vehicle in the first place.

However, this binary between an internal staff and very little or no support is a false one. By leveraging the services of an outsourced F&I provider like Finance Solution, getting customers into their new boats and RVs is possible without all the extra cost of a dedicated department.

What Do Dealer Services Look Like?

An outsourced finance company or, sometimes referred to as an outsourced service provider, can take on all of the essential functions of an in-house financing department without the additional costs of hiring employees. With established partnerships with lenders and general financial expertise, this means that an outsourced provider can secure competitive rates and faster loan qualifications than would otherwise be possible.

Finance Solution makes the entire process simple. After your salespeople get the “yes” from a new customer, we handle the rest. It’s as simple as filling out an application, getting approval, and signing a contract. We will handle the lender relationships, negotiations, and everything else that goes on behind the scenes.

But financing is only half of the package. Finance Solution also provides insurance services to make it as easy as possible for customers to roll off your lot and start their adventure—and avoid costly liability mistakes in the process.

Better Customer Service = More Units Moved

If dealer services are so great, why not work with a provider that services customers directly as well? After all, better customer service is one of the main factors in converting a prospective customer into a sold unit.

The problem with outsourced providers who work for both the dealership and the customer is that there is a conflict of interest. The idea that these companies are the key to better customer service is also a falsehood.

A company with a dual focus runs into two key problems. First, if they’re on the “lender’s side” in a transaction, they aren’t necessarily looking out for the best needs of the customer. Their entire mission is to find and secure the best leasing terms possible for the bank This doesn’t help the RV dealer and this certainly doesn’t help the customer.

Second, we have the reverse situation, where the outsourced firm is working solely on behalf of the customer. Often, this simply takes the form of finding the lowest rate possible without regard to terms that develop long term partnerships with banks or dealerships.

By working for the dealers’ interests first, a recreational vehicle or marine finance company like Finance Solution is incentivized to provide the best experience for customers while providing dealerships with all of the advantages of an in-house firm.

Partnering with an outsourced financing provider who exclusively works with dealerships is an important way to enhance your customer service and, inevitably, your bottom line.

Finance Solution: A Partner Finance Company

It may seem counterintuitive at first glance to shy away from finance providers that work on both the dealer’s and buyer’s behalf, but the fact is that in-house financing, or an in-house financing department that is forced to build lender relationships, just can’t provide the best results over the long term.

Sure, if you’re offering direct financing and a consumer negotiates a favorable deal, they might be happy. That situation just wouldn’t be sustainable over the long haul. An in-house department, that works with outside lenders, is expensive to maintain and is unlikely to secure the best terms for your clients.

Contact Finance Solution today to learn why we offer the ideal solution.