Issue link: https://read.dmtmag.com/i/274927
14 • March 17, 2014 • Powersports Business FINANCE www.PowersportsBusiness.com www.PowersportsBusiness.com FINANCE Powersports Business • March 17, 2014 • 15 With today's sophisticated buyer, are you guaranteed to drive some great F&I numbers if you hire the best "rainmaker" you can find? What is it about the "rainmaker" that's the differentiator? Can the F&I department (if there is one) perform without a full-time person? If a dealer sells 30 retail units a month, and most of those are cash deals, why should the dealership even have an F&I department? Let's look into these ques- tions, and describe what a true "rainmaker" is. THE "RAINMAKER" He or she averages more than $1,000 Per Vehicle Retailed in F&I, with more than a 100 Power Rating, with under 5 percent chargebacks, no customer complaints and 100 percent compliance. "Perfection" may be much easier to obtain for those larger dealerships with the highest average revenue per unit sold. For those dealerships that average $10,000 or under per sale, $500 PVR would be excellent, with a Power Rating of 75 or more. The Power Rating equals the number of products sold PVR. DEALER EXAMPLES: Dealer A 30 retail deals per month (23 cash deals, seven finance deals) Finance deals are structured and closed FOREIGN CURRENCY EXCHANGE 2/25/14 1 Month Ago 6 Months Ago Year Ago Annual Price Price %Change Price %Change Price %Change High Low Australian Dollar 1.11 1.15 3.4% 1.11 -0.1% 0.97 -12.5% 0.95 1.15 British Pound 0.60 0.61 0.8% 0.64 6.7% 0.66 8.9% 0.60 0.67 Canadian Dollar 1.11 1.11 0.0% 1.05 -4.9% 1.02 -7.5% 1.00 1.12 Euro 0.73 0.73 0.3% 0.75 2.4% 0.76 4.3% 0.72 0.78 Indian Rupee 62.05 62.49 0.7% 64.01 3.2% 54.20 -12.6% 53.85 68.14 Indonesian Rupiah 11,648 12,180 4.6% 10,780 -7.4% 9,709 -16.6% 9,663 12,260 Japanese Yen 102.45 102.36 -0.1% 98.47 -3.9% 93.22 -9.0% 91.61 105.11 Malaysian Ringget 3.29 3.33 1.4% 3.30 0.5% 3.10 -5.6% 2.96 3.35 Phillipine Peso 44.63 45.31 1.5% 44.27 -0.8% 40.69 -8.8% 40.58 45.40 Singapore Dollar 1.27 1.28 1.2% 1.28 1.0% 1.24 -2.2% 1.23 1.28 South Korean Won 1,075 1,080 0.5% 1,117 4.0% 1,085 0.9% 1,050 1,161 Taiwan Dollar 30.34 30.22 -0.4% 29.97 -1.2% 29.61 -2.4% 29.36 30.40 Thailand Bhat 32.55 32.88 1.0% 31.92 -2.0% 29.85 -8.3% 28.61 33.13 Note: A positive percent change reflects a weakening of the U.S. dollar and a strengthening of the foreign currency. Source: Wells Fargo Securities LLC POWERSPORTS BUSINESS STOCKS Stock Price Price Percent 52-Week Company Ticker 2/25/14 1/22/14 Change High Low Arctic Cat, Inc. ACAT $45.45 $43.27 5.0% $61.13 $33.62 ARI Network Services, Inc. ARIS $3.25 $3.23 0.6% $3.51 $1.70 Assurant, Inc. AIZ $63.67 $64.14 -0.7% $68.95 $40.17 Brunswick Corp. BC $43.70 $41.41 5.5% $47.08 $29.92 General Electric Co. GE $25.27 $24.95 1.3% $28.09 $21.11 Harley-Davidson, Inc. HOG $63.99 $64.02 0.0% $70.04 $49.15 Honda Motor Corp. ADR HMC $36.24 $38.00 -4.6% $42.96 $35.15 Orbital Engine Corp. Ltd. ADR OE $2.50 $2.51 -0.5% $5.78 $1.99 Polaris Industries, Inc. PII $129.89 $133.00 -2.3% $146.99 $82.80 TCF Financial Corporation TCB $15.85 $16.59 -4.5% $17.12 $13.34 Stock Price Price Percent 52-Week Company Ticker 2/25/14 1/22/14 Change High Low ArvinMeritor ARM $12.42 $9.41 32.0% $12.49 $4.11 ADP ADP $77.01 $76.97 0.1% $83.82 $60.66 Bridgestone Corp. ADR BRDCY $17.97 $19.05 -5.7% $19.17 $15.10 Carlisle Companies CSL $77.10 $75.75 1.8% $80.21 $60.34 Cooper Tire & Rubber CTB $24.18 $22.46 7.7% $34.80 $20.55 Dover Corporation DOV $90.00 $90.33 -0.4% $97.00 $67.45 Intl. Speedway Corp. Cl. A ISCA $32.32 $35.88 -9.9% $38.01 $29.30 Deere & Company DE $84.05 $85.55 -1.8% $93.88 $79.50 Marinemax, Inc. HZO $14.19 $14.71 -3.5% $16.95 $10.17 Spy Inc. XSPY $1.41 $1.38 2.5% $2.25 $0.50 Speedway Motorsports, inc. TRK $19.30 $19.81 -2.6% $20.75 $16.25 Universal Technical Institute UTI $13.78 $13.27 3.8% $15.16 $9.96 POWERSPORTS BUSINESS INDEX COMPONENTS INTERNATIONAL STOCKS OF INTEREST Source: Wells Fargo Securities LLC Stock Price Price Percent 52-Week Company Ticker 2/25/14 1/22/14 Change High Low BMW AG BMW-ETR 83.95 € 81.97 € 2.4% 86.88 € 63.27 € BRP, Inc. DOO-TSE $28.40 $28.30 0.4% $30.81 $23.41 Kawasaki Heavy Industries 7012-TKS 420 ¥ 468 ¥ -10.3% 496 ¥ 272 ¥ KTM Powersports AG KTM-WBO 75.00 € 78.00 € -3.8% 80.02 € 49.70 € Michelin ML-PAR 88.74 € 77.62 € 14.3% 89.05 € 57.23 € NGK Sparkplug 5334-TKS 2317 ¥ 2448 ¥ -5.4% 2643 ¥ 1296 ¥ Suzuki Motor 7269-TKS 2718 ¥ 2804 ¥ -3.1% 2982 ¥ 2049 ¥ Yamaha Motor 7272-TKS 1534 ¥ 1459 ¥ 5.1% 1825 ¥ 1065 ¥ Yokohama Rubber 5101-TKS 972 ¥ 971 ¥ 0.1% 1312 ¥ 829 ¥ DOMESTIC STOCKS OF INTEREST Octane Lending is seeking to build a net- work of lenders that would offer pre-approved loans based on soft credit pulls, so that only one hard credit pull would be completed following the acceptance of the pre-approved loan. "You can send off one application to mul- tiple banks, and it only incurs one hard credit pull," Guss said. This pre-approval process would benefit both the consumer and the dealer. The con- sumer would avoid multiple hard credit pulls, while also being able to choose among the pre-approvals for ideal rates and terms. Deal- ers would be able to offer customers the piece of mind that comes with only one hard credit inquiry, and they'd likely be able to finance more customers as banks would compete head to head for a customer's loan. "If you're a borderline customer, there's a chance that one bank would approve you, when another wouldn't," Guss said. Octane Lending expects more than 70 per- cent of pre-approved loans will be awarded to consumers following the hard credit pull. "Every dealer that we've spoken with loves the idea of being able to send out to multiple lenders with one hard credit pull," Guss said. In order to launch the new feature, Guss believes Octane Lending needs participation by at least a few hundred dealers, so it can prove its strength and dealer acceptance to lenders. That's driving Octane Lending in its efforts to increase dealer use, so it can grow the company and help dealers in the process. PSB OCTANE CONTINUED FROM PAGE 12 What if we hired a 'rainmaker?' P12x15-PSB4-Finance.indd 14 3/5/14 11:37 AM