Issue link: https://read.dmtmag.com/i/208245
m A rst ar. urre, ips elt to nce ars min de ng tour he ice ow eps t is nd ng s is buthe triA's the me s. lly al- nce l at ent urcts eo- www.PowersportsBusiness.com MOTORCYCLE Powersports Business • November 4, 2013 • 27 Ducati offers dealers VW financing option Addition of VW Credit services expected to boost sales BY TOM KAISER SENIOR EDITOR In a move expected to boost unit sales, bolster profits and further strengthen ties between Ducati and its still-new corporate parent, Volkswagen, Ducati North America launched a new in-house retail financing program supported by VW Credit, Inc. The newly established Ducati Financial Services (DFS) officially opened for business in early September, a significant step in the company's plan to roll out DFS throughout many of its major markets around the globe. "The introduction of Ducati Financial Services marks an historical time for Ducati North America. With specifically tailored, inhouse programs, we are now able to effectively enhance and improve the customer buying and ownership experience," said Dominique Cheraki, general manager of Ducati North America. "The implementation of a program of this magnitude represents a milestone in the development of Ducati and its growing dealer network in North America." In an exclusive interview with Powersports Business, Cheraki cited the addition of VW Credit as the first tangible evidence of the company's assimilation into the Wolfsburg, Germany-based Volkswagen Group. "Being bought by such a large group, it will open up different opportunities for us," he said. "One of the first ideas that we had was we finally will be able to have our own financing solution in house, which, for a manufacturer, is the best situation to be in." The United States, Ducati's largest market with 9,258 units retailed in 2012, has joined Italy and Germany in adopting the new DFS, a project that's already underway in Mexico and will soon be extended to Canada. Cheraki said the new financing provides two primary benefits, for both the brand's customers and its dealers. For customers, the parent company is offering exceptional rates, including a 1.99-percent promotion, as well as the addition of ancillary products like guaranteed asset protection (GAP), Road Hazard Tire and Wheel coverage and the reintroduction of its Ever Red Motorcycle Protection Plan. For dealers, the new financial partner means additional tools to sell to customers and dedicated DFS staff to work with over the phone, as well as an expected improvement in acceptance rates that could boost new and used unit sales. The new Ducati 1199 Superleggera, set to be on display at EICMA, will have limited production of 500 units. Dealers have reacted positively to Ducati's addition of VW Credit as a retail financing option. "The responsiveness at Volkswagen financing, they really put in place a dedicated team to support Ducati dealers," Cheraki said. "That's the first thing, and probably in the future we'll be able to come with some specific tools, financing ideas and promotions that will help the dealers to sell more, so the direct benefit for the dealer is to make the business easy, to be close to the dealer and be able to have a dedicated team." He added that since the project's launch in September, more than 90 percent of Ducati's dealer network in the United States has signed up, indicating a high level of interest from dealers. Cheraki said he expects the Ever Red Motorcycle Protection Plan to have the highest rates of adoption, followed by tire and wheel coverage and GAP. "GAP protection is quite popular, because it makes a lot of sense," he said. "If I had to take [out] a loan for a bike, I would not hesitate for one minute to take the GAP … so I expect they will do well." POSITIVE DEALER RECEPTION Doug Kennedy, general manager of Euro Cycles of Tampa Bay in Florida, is pleased with the launch of DFS, his store's recent increase in Ducati sales and excitement he picked up from the brand's recent dealer show in New Orleans. "I think it's a great addition, because obviously Volkswagen Credit has a lot more resources and deeper pockets to loan money to our guests," Kennedy said. "They're throwing out some really good teaser rates for the motorcycle industry — 1.99 percent is a great rate — but we're seeing approvals on those rates as well, so it's not just for the uber-credit-worthy people." Kennedy said many of his customers do research online before visiting the store and, therefore, are informed about the new financing See Ducati, Page 28 California dealers team up with digital DMV partner John Paliwoda, executive director of the California Motorcycle Dealers Association, informed Powersports Business of a new partnership the CMDA has formed with an electronic motorcycle DMV registration provider. Motor Vehicle Software Corporation and its flagship solution, DMVdesk, has been selected as the preferred provider for all vehicle e-filing services for CMDA members. The majority of California franchised motorcycle and powersports dealers belong to CMDA. MVSC's e-registration solution, DMVdesk is recognized as the leading electronic DMV registration compliance solution in California, according to the company. The software solution provides an end-to-end registration process for the motor vehicle market, including motorcycles and powersports vehicles. "After an exhaustive search to find the best electronic registration service for our members, the CMDA has selected MVSC's DMVdesk as its preferred provider," Paliwoda said. "Their commitment to hands-on training for our members' staff and customer service is very impressive, and now that off-highway vehicles will be able to be processed electronically soon, every California motorcycle or powersports dealer should sign up to use DMVdesk." DMVdesk has the industry's highest rate of DMV compliance at 99.5 percent, along with the fastest plate and sticker direct fulfillment in the state, the company said. DMVdesk currently supports the e-filing of all on-highway motorcycles. By the end of 2013, DMVdesk will offer e-registration support for all off-highway vehicles. This will enable dealers to e-file their side-by-sides and ATVs. "We are very excited about our partnership with CMDA. We are confident that our solution will enable motorcycle and powersports dealers to significantly streamline their vehicle registration processes, translating into significant savings of time and money," said Don Armstrong, CEO of MVSC. PSB fer at s," uilt hip of P26x28-PSB14-Cycle.indd 27 10/30/13 12:51 PM