Issue link: https://read.dmtmag.com/i/164037
F&I PSB FOCUS 12 • September 9, 2013 • Powersports Business www.PowersportsBusiness.com American Honda sees sales growth in its fiscal Q1 F&I SOLUTIONS CONTINUED FROM PAGE 11 confirm any claims made by a customer. In one instance a customer stated that they told the finance manager to hold a check for a few days rather than to deposit it immediately. A review of the transaction proved that no such request had been made. Video reviews should be done with the sales manager and business manager. How a customer is turned over to finance is equally important as the manner in which presentations are made. If the sales department is conducting the turnover in such a way as to infringe upon the ability to generate F&I profit, it will be apparent in the video. 100 percent proper and timely turnover: In some cases customers will want to utilize their own financing. This is not an issue. What is an issue is when a customer leaves your dealership to obtain that financing without first meeting your business manager. In those situations, your customer can still continue to shop your offer. If your sales staff is bypassing the process by not turning over deals, then you'll need to hit them in their pocket. The lack of turnover is most definitely hitting you in the pocket through lost sales and missed back-end profit opportunities. At the end of the day it's the most effective way of ensuring compliance with your policies. Two-day financing option: Another item you should consider would be to allow those customers who wish to use their own financing source two days to compete their paperwork with their own lender. Here's how it would work. Your finance manager would obtain financing for the customer through the dealership. All of the paperwork would be completed as normal and the customer allowed to leave with the unit. They would be given a note on your letterhead stating that they have two days in which to return with a check from another lender. You agree that should they do this, you will tear up the paperwork completed at your dealership and utilize their financing. This process helps reduce the amount of lost sales due to customers leaving and not coming back either because they changed their mind or were referred to another dealership. Should the customer not return, you are fully protected as you have a cashable contract you can submit to your lender. Utilize these ideas and you'll see an increase in your department's performance. Peter Jones is an industry trainer and consultant as well as founder of Peter Jones Powersports and can be reached at peter@peterjonespowersports.com or 904/742-3080. American Honda experienced strong sales growth and retail share increases in the U.S. for the fiscal first quarter ended June 30, 2013, Powersports Business has learned. The solid quarter was attributed to new two-wheel models like the NC700, CTX700, CB500F, CBR500R and the GL1800F6B, according to American Honda officials. ATV retail sales declined yearover-year in fiscal Q1 as expected, as Honda builds out of the 2013 model year for Rancher and Foreman in preparation for the release of the new generation 2014 of those machines, slated for release in fiscal Q3. Don't be surprised to see more success in 2013 from American Honda, officials said, with the company having recently a n n o u n c e d n e w R a n c h e r, Foreman and Pioneer models. Honda has now announced 11 new 2014 model releases for its U.S. customers. American Honda credited sales of its CBR500R for a strong fiscal first quarter. See Honda on Page 14 DEALER FINANCIAL SNAPSHOT NORTHWEST 4.0% NORTHEAST -3.0% MIDWEST 9.8% Service Department 9.6% Major Units 9.7% 16.1% Parts Department 10.8% Parts Department Overall Parts Department Service Department 15.8% Service Department Major Units 15.1% 6.1% Major Units WEST 2.0% Overall 5.1% 4.0% Overall Parts Department 13.9% Service Department 16.9% Major Units SOUTH 3.3% 13.9% Overall Parts Department 5.9% UNITED STATES Service Department 13.5% 12.1% 3.4% Parts Department Major Units Major Units 9.5% 10.3% 11.0% Service Department Overall Overall JULY 2013 PARTS SALES For 1,336 metric and V-twin dealers, growth returned in July as all departments in all regions showed improvement with the exception only of parts in the Northeast. Gains are led by sales of major units, up 12 percent over last year's July. Parts showed the smallest gains, with only 3.4 percent growth over July 2012. Total store showed 10 percent growth nationally, but the Northwest led regions with a 15 percent increase. This is the strongest growth rate seen since May 2012, when sales were up 15 percent over 2011. In parts, 701 dealers were up, while 635 were down. SERVICE SALES 785 dealers were up in service, and 445 were down MAJOR UNIT SALES FOR MORE ON THE SAME STORE SALES DATA For more information on this report and other industry data, contact: adplightspeed.com/dataservices For unit sales, 743 dealers were up, and 431 were down. STOCK MARKET WATCH MARKET WATCH 8/20/13 Change from 7/23 POWERSPORTS BUSINESS WINNERS AND LOSERS STOCK MARKET ACTIVITY 240 % Change 220 Powersports Business Index 220.904 15.5 7.54% 200 Dow Jones Index 130.493 -4.91 -3.63% 160 S&P 500 Index 112.462 -2.73 -2.37% 180 140 120 100 P10x21-PSB11-Focus.indd 12 8/20/13 7/23/13 S&P 500 INDEXED 6/21/13 5/28/13 5/7/13 4/17/13 DOW JONES INDEXED 3/15/13 2/22/13 1/25/13 PSB INDEX VALUE 1/11/13 80 Company Arctic Cat, Inc. Orbital Engine Corp. Ltd. ADR Brunswick Corp. MarineMax, Inc. Polaris Industries, Inc. ArvinMeritor Speedway Motorsports, Inc. Spy Inc. Intl. Speedway Corp. Cl. A Bridgestone Corp. ADR Stock Ticker ACAT OE BC HZO PII ARM TRK XSPY ISCA BRDCY Price 8/20/13 $56.72 $2.85 $36.94 $11.82 $114.02 $7.49 $18.19 $1.15 $31.99 $67.84 Percent Change 14.8% 14.0% 11.6% 11.0% 7.5% -4.6% -6.5% -8.0% -8.1% -9.4% 8/28/13 10:49 AM