Issue link: https://read.dmtmag.com/i/288267
FINANCIAL filled out our credit application?" In this case, Jerry, the one-week old sales- person, did several things with one single phone call: He got the customer's name, phone num- ber and an appointment with a specific time; He confirmed he was willing to negoti- ate without agreeing to an out-the-door price (or could have confirmed "X" was the bottom line price); He positioned the dealership as hav- ing sufficient inventory, in case this one isn't exactly right; He found out there is a trade and the cus- tomer financed with another bank last time; He confirmed a need for financing and set the process to start right away with an online application. The finance process truly begins before the customer ever walks in the door. Adver- tising and point of purchase displays also benefit the finance department: "Financing as low as 1.99 percent for approved buyers, this weekend only." While finance managers may cringe at the low rate, many banks still offer flat fees at a certain rate. The finance department benefits by getting a finance deal versus a cash deal, and they also have a better chance of selling 8 • April 8, 2014 • Powersports Business www.PowersportsBusiness.com Where does the finance process begin? STOCK MARKET WATCH DEALER FINANCIAL SNAPSHOT FEBRUARY 2014 February 2014 resulted in an 8.0 percent increase overall for 1,341 metric and V-twin ADP Lightspeed users. Major units saw the biggest increase, up 8.6 percent over February 2013. All regions were up except the Northwest, which reported a 4.5 percent drop overall and decreases in each department. The West fared well in February, with a 14.9 percent increase overall, led by a 17.6 percent jump in unit sales and a 16.2 percent hike in service. PARTS SALES Parts was up for 708 dealers and down for 633. SERVICE SALES In service, 741 dealers wre up, while 532 were down. MAJOR UNIT SALES 645 dealers were up and 498 were down in major units. NORTHWEST -3.0% Parts Department -4.1% Service Department -6.1% Major Units -4.5% Overall MIDWEST 1.4% Parts Department 3.8% Service Department 0.8% Major Units 2.1% Overall NORTHEAST 15.0% Parts Department 6.1% Service Department 7.7% Major Units 8.3% Overall SOUTH 2.5% Parts Department 7.1% Service Department 10.1% Major Units 9.2% Overall WEST 4.1% Parts Department 16.2% Service Department 17.6% Major Units 14.9% Overall UNITED STATES 4.1% Parts Department 7.8% Service Department 8.6% Major Units 8.0% Overall Stock Price Percent Company Ticker 3/14/14 Change MarineMax, Inc. HZO $15.76 11.1% Polaris Industries, Inc. PII $138.30 6.5% Arctic Cat, Inc. ACAT $47.95 5.5% Harley-Davidson, Inc. HOG $67.22 5.0% Deere & Company DE $87.20 3.7% Bridgestone Corp. ADR BRDCY $17.56 -3.3% Universal Technical Institute UTI $13.00 -5.7% ArvinMeritor ARM $11.68 -6.0% Orbital Engine Corp. Ltd. ADR OE $2.39 -10.7% Dover Corporation DOV $79.80 -11.3% POWERSPORTS BUSINESS WINNERS AND LOSERS www.PowersportsBusiness.com FINANCE Powersports Business • April 8, 2014 • 9 ARI Network Services reported financial results for its fiscal 2014 second quarter ended Jan. 31. Recurring revenues for the second quarter of fiscal year 2014 were $7.7 million, a 17.1 percent increase over the second quarter of fis- cal year 2013. As a percentage of total revenues, recurring revenues in the second quarter were 94.7 percent in fiscal year 2014 versus 87.9 percent for the same period in fiscal year 2013. Total revenues for the second quarter of fis- cal year 2014 were $8.1 million, an 8.8 percent increase over the same period last year. FOREIGN CURRENCY EXCHANGE 3/14/14 1 Month Ago 6 Months Ago Year Ago Annual Price Price %Change Price %Change Price %Change High Low Australian Dollar 1.11 1.11 0.2% 1.10 -0.8% 0.96 -13.0% 0.95 1.15 British Pound 0.60 0.60 -0.6% 0.60 0.0% 0.66 10.5% 0.60 0.67 Canadian Dollar 1.11 1.10 -1.0% 1.12 0.8% 1.03 -7.5% 1.00 1.12 Euro 0.72 0.73 1.7% 0.72 0.1% 0.77 7.3% 0.72 0.78 Indian Rupee 61.17 62.09 1.5% 61.00 -0.3% 54.31 -11.2% 53.86 68.14 Indonesian Rupiah 11,355 11,825 4.1% 11,314 -0.4% 9,703 -14.6% 9,690 12,260 Japanese Yen 101.46 101.86 0.4% 101.59 0.1% 96.12 -5.3% 92.86 105.11 Malaysian Ringget 3.28 3.31 0.8% 3.28 -0.1% 3.11 -5.1% 2.96 3.35 Phillipine Peso 44.70 44.74 0.1% 44.85 0.3% 40.63 -9.1% 40.61 45.40 Singapore Dollar 1.27 1.26 -0.4% 1.27 0.0% 1.25 -1.2% 1.23 1.28 South Korean Won 1,072.80 1,063.40 -0.9% 1,070.45 -0.2% 1,109.15 3.4% 1,050.30 1,161.35 Taiwan Dollar 30.33 30.30 -0.1% 30.40 0.2% 29.69 -2.1% 29.36 30.40 Thailand Bhat 32.32 32.59 0.8% 32.15 -0.5% 29.65 -8.3% 28.62 33.13 Note: A positive percent change reflects a weakening of the U.S. dollar and a strengthening of the foreign currency. FOR MORE ON THE SAME STORE SALES DATA For more information on this report and other industry data, contact: adplightspeed.com/dataservices See Gallmeier, Page 10 MARKET WATCH Change 3/14/14 from 2/25 % Change Powersports Business Index* 311.382 14.07 4.73% Dow Jones Index 139.736 -0.99 -0.70% S&P 500 Index 125.311 -0.27 -0.22% Source: Wells Fargo Securities LLC Where does the finance process begin? Just a guess, but for 75 percent of powersport deal- ers, the finance process may not exist at all. For the other 25 percent, the ones with the highest PVR (profits per vehicle retailed), the highest Power Rating and the highest cus- tomer satisfaction, the finance process begins before the customer even walks in the door. For the 25 percent that get it, THIS ARTI- CLE IS NOT FOR YOU! Phone call for the owner/general man- ager of small multi- line store: "This is Bob. Hi Steven, how are you? Yeah, I'll be here. Come on out and take a look . We can probably get you into it for around $8,500; does that work for you? Yeah, there are some fees. Are you trading in your old one? Sure, $8,750 out the door. OK great, see you on Tuesday." Phone call for sales (answered by Jerry, in his first week on the job after reading his sales and finance process handbook): "FinanceMe Motors, this is Jerry, how may I help you? Yes, we have that one in stock. Have you been here before? And who am I speaking with? What's your last name Steven? In case I lose you in a bad cell area, what's your phone number? Yes, we have it listed at $9,999. Would you like to come in to try it out? Well, yes, absolutely that time works fine. When you get here we can sure finish our discussion about price. Let's make sure that's the right one for you, OK? Are you trading your old one in with us? And what is your payoff amount? OK great, when you're here remind me to show you some of our great matching accessories and introduce you to our finance manager. We already do business with most of the banks in town and currently have some fantastic rates. Have you 25% The percentage of dealers for whom the finance process begins before the customer walks in the door. F&I SOLUTIONS BRIAN GALLMEIER ARI revenue rises 8 percent over 2013 80 100 120 140 160 180 200 220 240 260 280 300 320 7/23/13 8/20/13 9/16/13 10/14/13 11/8/13 12/9/13 1/6/14 1/27/14 2/25/14 3/14/14 PSB INDEX* DOW JONES INDEX S&P 500 INDEX STOCK MARKET ACTIVITY * The Powersports Business Index has been adjusted to reflect the addition of TCF Financial Corporation (TCB) on 2/25/14. * The Powersports Business Index has been adjusted to reflect the addition of TCF Financial Corporation (TCB) on 2/25/14. P08x10-PSB5-Finance.indd 8 3/27/14 10:51 AM