Many RV dealers offer direct financing through an internal financing department. The illusion that keeping everything in-house is better can be difficult to break, but once you break down the costs, an in-house financing department is difficult to justify.
Staffing Costs – Every solution requires an investment, but an internal staff may not be feasible. Salary and benefits alone are a cost that often can’t be outweighed, except when units are quickly rolling off the lot. Then there is the expense of having more than one F&I manager to ensure coverage while one is on vacation or sick.
Recruiting and Turnover – Finding the right experts who can negotiate with lenders to secure financing is never a sure thing. Even once you find someone, there’s always the chance they could leave for another dealership or firm.
Ongoing Lender Relationships – Building a relationship with lenders takes time and, when they’re tied to specific professionals on your staff, that relationship is always up in the air. In other words, securing the best rates for your customers is far from guaranteed.