It is a common trend among RV and boat dealerships to outsource the financing functions of their business. Running a dealership involves countless tasks, each of which would constitute a job all their own. From staff management to inventory, some jobs need to be kept in house and simply can’t be outsourced. Financing, on the other hand, is an area of opportunity for a dealer to outsource a critical function to the professionals, cutting their expenses in the process.
Consider what is involved in offering in-house financing solutions for your customers: hiring staff, complying with various regulatory frameworks, acquiring new software and systems, etc. The steps involved with loan processing and approval aren’t just another service. Outsourcing your financing solutions simply makes sense.
- The profitability of F&I without the expense – Working with the right F&I outsourcing company can increase loan approvals—and it can do so without you needing to hire and train additional staff. Also remember that you will have to pay your in-house staff during slow times and the off season, while an outsourced finance department is available year-round.
- A team of professionals at your disposal – An outsourced finance company is always available. Your dealership may only have the resources to hire one F&I specialist. But what happens when this person is unavailable? These important functions are left to an unqualified replacement or not done at all, meaning a potential sale is lost.
- Outsourced companies don’t get paid until you do – Compensation for an outsourced finance company comes out of the profits of the sale, meaning the outsourced F&I company is highly motivated to keep lenders and customers happy by providing the best possible deal for them.