Flexible financing partnerships between dealers, lenders and OEMs; customized financing solutions; investing in scalable integrated technologies; and customer education are keys to navigating current and future market conditions.
As equipment dealers, lenders and OEMs continue to look for the best methods to navigate market uncertainty, rising delinquencies and other concerns, developing flexible relationships between lenders and distributors represents a key component to successful operations, Kirk Mann, executive vice president and head of transportation at Mitsubishi HC Capital America, tells Equipment Finance News on this episode of “The Dig” podcast.
To maximize their lender relationships, dealers and OEMs should:
- Spend time with your lender to build a strong relationship;
- Allow lenders to ask as many questions as they need;
- Provide thorough answers — even to questions they haven’t thought of yet; and
- Ensure mutual understanding to strengthen trust and communication.
In addition, offering customized financing solutions as a part of the sales process represents a great method of ensuring that dealers, lenders and OEMs can continue to meet buyers’ needs, Mann says.
“Dealerships with the F&I manager or with a lender that is lending directly into a fleet environment, making sure that those financing solutions are a part of that equipment sales process; it helps,” he says. “It helps to ease the customer’s adoption because they can afford it.”
Ninety percent of respondents to a May 30-released Mitsubishi HC Captial America survey of the company’s construction and transportation clients stated they expected to use financing for new equipment, indicating a significant need for financing solutions, Mann says.
Third, investing in scalable, integrated technologies and partnering with platforms that provide full supply chain visibility can greatly benefit medium-duty truck buyers who often require upfitting and additional components, Mann says.
And finally, equipment sellers must effectively educate customers on the ROI of modernization and build strong relationships with financing partners to support tailored financing solutions.
Tune in to the newest episode of “The Dig” to hear from Mann about trends in equipment financing, supply chain disruptions, customer needs, new technologies and managing risks.
Register here for the free Equipment Finance News webinar “Technologies to Advance Your Equipment Financing Business” set for Thursday, July 17, at 11 a.m. ET.
