Conversations with dealers these days don't last long before the
topic of financing comes up. Across all Manheim Specialty categories we hear dealers talking about challenges matching Black Book, NADA and other book pricing to retail and in finding banks to finance consumer purchases. Some dealers report some loosening for consumers and their own businesses, but certainly not enough to support as quick a recovery as we'd all like.
We came across a free F&I webinar on PowerSportsBusiness.com on March 24. And to support the wholesale business, Manheim has a floor plan arm, MAFS, that offers floor planning to a variety of Specialty customers, including RVs and motorcycles. Manheim sales can help dealers connect with GE Capital for boat financing as well.
We want to hear what's going on in your world - how are you getting customers financed these days? Are you seeing a bigger percentage of credit unions and small banks doing the financing? Do you anticipate the bigger banks getting back to (or even close to) previous financing levels? Has your dealership found other ways to get customers into new and used product? We look forward to hearing from you.
Samantha Greene is Inside Sales Representative - RVs - for Manheim Specialty Auctions
Chris Hood is a Senior Marketing Manager at Manheim and has 15 years' experience in auction, sports and event marketing
We talk every week with Motorcycle, PowerSports, Boat and RV dealers looking for new ways to manage inventory and grow profits. Many of them are new to auctions, and some get discouraged because the units do not sell for what their expectations are. The mindset needs to be a wholesale mindset.
Dealers consistently tell us they are looking to sell at auctions both to have a method of selling customer trade-ins that may not sell at their dealership and to move aged inventory. Auctions are a powerful tool for both buyers and sellers, and Manheim created several guides including an Auction Handbook and 'getting started' videos as part of a Dealer Resource Center to help dealers get comfortable with auctions.
Here are some tips on how to adopt a wholesale mindset when pricing your units to sell at auction:
- Use a pricing guide like NADA or Black Book
- Register for the Manheim market report, which gives a monthly snapshot of what units have sold for at auctions
- Visit Manheim PowerSearch to see what units are currently available for sale as well as the asking price for s
elect units
- Consider the vehicle's condition in setting the price - your auction will be able to provide a condition report to help you
Once the units are units are priced to sell, you will be able move your inventory quicker to have less aged inventory on your lot. As you sell more at auctions you'll also develop a following of buyers who know and trust you, helping you generate more profitable sales.
Angie Loving is the National Operations Manager, and Karl Mitchell is the National Dealer Manager, for Manheim Specialty Auctions