Issue link: https://read.dmtmag.com/i/316641
10 • May 26, 2014 • Powersports Business FINANCE www.PowersportsBusiness.com can be increased to $1,650. After adjustments, the payment becomes $341.32. With all this information, the finance man- ager is ready to load the menu. Many menu systems integrate directly with DMS and even CRM systems. Information sometimes only needs to be entered once, and then it can be saved along with the entire deal. The menu should clearly specify exactly what is being purchased and what is being declined. Any printed menu should be kept with the deal for seven years, along with all the rest of the paperwork. It is not uncommon for customers to come back after looking at their paperwork a few months later and swearing that they never purchased GAP or a service contract. The menu is the first place to look if there is ever a question. Here is the base payment information that should be documented on the printed menu: Sell price: $20,200 Down payment: $1,650 Interest rate: 2.99 percent Term: 60 months Base payment: $341.32 Any trade-in would have been included in the down payment section. If any of the base information is incorrect, the finance manager will know immediately, as that is the first thing he or she will review before getting into the presentation. CHOOSE THE MENU SPECIFICS Extended Service Contract: Five years, exclu - sionary coverage, $0 deductible — $1,700 The Extended Service Contract pays for mechanical failures once the manufacturer's warranty expires. It not only pays for the repair of the vehicle but also includes rental, roadside and/or towing, and travel reimbursement. GAP: Five years — $795 GAP pays the difference between what you owe and what your vehicle is worth in the event of a total loss. Tire/Wheel/Roadside: Five years — $595 Tire & Wheel pays to repair or replace your tire and wheel if necessary if damaged while driving under normal conditions Appearance Protection: Five years — $795 Appearance Protection not only protects your vehicle from oxidation and fading, but also tree sap, bird droppings, fall out and other environmental hazards. It also makes your vehicle easier to clean. The single most important element to the menu is a place for signatures, clearly illustrat - ing that the customer has declined the options or accepted some or all of them. Even with just these four optional prod- ucts, the finance manager can place them in columns, ranking from Premier or Advantage, down to Standard or Base, include pricing and benefits, while giving the customer some choices usually quoted in payment terms at the bottom of each column. The products and terms were chosen by the finance manager based on all the information he or she gained from the deal; other options or terms might come up during the menu presentation. The menu presentation itself is the closing of the deal, many times the single point in time during the sales and finance process that will make or break the profitability for the store. My next article will focus specifically on the menu presentation. PSB Brian Gallmeier, founder of Income Develop- ment Partners, uses his powersports experience at the retail level to train F&I departments. He can be reached at bgallmeier@charter.net or 612/616-8611. www.PowersportsBusiness.com FINANCE Powersports Business • May 26, 2014 • 11 Wells Fargo Securities has initiated coverage of BRP's stock with an "outperform" rating, according to a research note provided to Pow- ersports Business by Wells Fargo Securities analyst Tim Conder. "We believe that BRP is positioned to gain share within the powersports industry recov- ery, driven by (1) operational excellence, (2) optimizing U.S. dealer coverage, (3) enhancing dealer/consumer touch-points, (4) the filling in of product whitespaces, and (5) acceleration of international sales," Conder reports. Conder goes on to write that the "powers- ports industry appears well positioned for con- tinued recovery, given (1) improving economic metrics, (2) clean channel inventory, and (3) new/used market dynamics all lifting new unit sales. Macro pressures appear to be subsiding, with credit availability, economic momentum, and confidence levels strengthening consumer propensity to spend. Overall, BRP company fundamentals remain positive. … "BRP is set to leverage additional growth opportunities by (1) advancing new and existing product categories, (2) promoting uptake of early-stage segments (SxSs, Road- ster), and (3) optimizing dealer coverage/per- formance, with emphasis on North America. Aligning these initiatives should attract new users to the sport, boost purchase conver- sion, and stimulate cross-ownership. BRP carries a proven track record for innova- tion that garners valuable brand equity and market-share momentum." PSB FOREIGN CURRENCY EXCHANGE 5/2/14 1 Month Ago 6 Months Ago Year Ago Annual Price Price %Change Price %Change Price %Change High Low Australian Dollar 1.08 1.08 0.2% 1.07 -0.5% 0.98 -9.6% 0.97 1.15 British Pound 0.59 0.60 1.4% 0.59 -0.4% 0.64 8.8% 0.59 0.67 Canadian Dollar 1.10 1.10 0.6% 1.09 -0.2% 1.01 -8.1% 1.00 1.13 Euro 0.72 0.73 0.7% 0.72 -0.4% 0.76 6.1% 0.72 0.78 Indian Rupee 60.21 59.80 -0.7% 60.17 -0.1% 53.86 -10.6% 53.86 68.14 Indonesian Rupiah 11,523 11,293 -2.0% 11,517 0.0% 9,737 -15.5% 9,730 12,260 Japanese Yen 102.25 103.72 1.4% 101.93 -0.3% 98.02 -4.1% 94.22 105.11 Malaysian Ringget 3.27 3.27 0.1% 3.25 -0.4% 3.05 -6.6% 2.96 3.35 Phillipine Peso 44.50 44.88 0.9% 44.32 -0.4% 41.06 -7.7% 40.83 45.40 Singapore Dollar 1.25 1.26 0.7% 1.25 -0.4% 1.24 -1.4% 1.23 1.28 South Korean Won 1,030.30 1,056.55 2.5% 1,030.30 0.0% 1,101.55 6.9% 1,030.30 1,161.35 Taiwan Dollar 30.14 30.28 0.5% 30.13 -0.1% 29.56 -1.9% 29.36 30.59 Thailand Bhat 32.37 32.40 0.1% 32.37 0.0% 29.43 -9.1% 29.38 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 5/2/14 4/11/14 Change High Low Arctic Cat, Inc. ACAT $41.54 $44.00 -5.6% $61.13 $40.13 ARI Network Services, Inc. ARIS $3.08 $3.06 0.7% $3.51 $2.25 Assurant, Inc. AIZ $68.02 $63.22 7.6% $69.26 $45.03 Brunswick Corp. BC $41.31 $41.66 -0.8% $47.69 $29.92 General Electric Co. GE $26.68 $25.43 4.9% $28.09 $21.11 Harley-Davidson, Inc. HOG $72.68 $65.51 10.9% $70.04 $49.15 Honda Motor Corp. ADR HMC $33.72 $33.74 -0.1% $42.96 $33.32 Orbital Engine Corp. Ltd. ADR OE $2.59 $2.63 -1.5% $4.32 $1.99 Polaris Industries, Inc. PII $136.40 $130.50 4.5% $146.99 $83.20 TCF Financial Corporation TCB $15.51 $15.73 -1.4% $17.39 $13.49 Stock Price Price Percent 52-Week Company Ticker 5/2/14 4/11/14 Change High Low ArvinMeritor ARM $13.83 $11.17 23.8% $12.95 $4.29 ADP ADP $77.54 $73.73 5.2% $83.82 $63.98 Bridgestone Corp. ADR BRDCY $18.08 $17.34 4.3% $19.17 $15.69 Carlisle Companies CSL $82.71 $75.95 8.9% $80.70 $60.34 Cooper Tire & Rubber CTB $27.48 $23.81 15.4% $34.80 $20.55 Dover Corporation DOV $85.89 $80.78 6.3% $85.93 $55.95 Intl. Speedway Corp. Cl. A ISCA $31.29 $32.00 -2.2% $38.01 $29.30 Deere & Company DE $92.92 $92.01 1.0% $94.59 $79.50 MarineMax, Inc. HZO $16.66 $15.06 10.6% $17.06 $10.17 Spy Inc. XSPY $1.38 $1.38 0.0% $2.25 $0.50 Speedway Motorsports, Inc. TRK $18.24 $17.97 1.5% $20.75 $17.16 Universal Technical Institute UTI $12.00 $12.20 -1.6% $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 5/2/14 4/11/14 Change High Low BMW AG BMW-ETR 89.03 € 90.21 € -1.3% 94.23 € 63.27 € BRP, Inc. DOO-TSE $29.35 $29.17 0.6% $31.98 $23.41 Kawasaki Heavy Industries 7012-TKS 386 ¥ 368 ¥ 4.9% 496 ¥ 283 ¥ KTM Powersports AG KTM-WBO 82.90 € 84.00 € -1.3% 84.00 € 49.70 € Michelin ML-PAR 88.86 € 89.38 € -0.6% 93.39 € 57.23 € NGK Sparkplug 5334-TKS 2378 ¥ 2301 ¥ 3.3% 2643 ¥ 1491 ¥ Suzuki Motor 7269-TKS 2640 ¥ 2643 ¥ -0.1% 2982 ¥ 2051 ¥ Yamaha Motor 7272-TKS 1642 ¥ 1605 ¥ 2.3% 1825 ¥ 1217 ¥ Yokohama Rubber 5101-TKS 916 ¥ 909 ¥ 0.8% 1312 ¥ 829 ¥ DOMESTIC STOCKS OF INTEREST Wells Fargo now covering BRP P09x11-PSB7-Finance.indd 11 5/14/14 2:02 PM