At some point, every dealer principal is likely to have a conversation with a prospective financial company about establishing a partnership. Many of the talking points will be clear and understood, but what are some of the critical questions that could possibly be overlooked, often leading to painful consequences and a sour relationship?
We spoke to some leaders in top financial companies to ask what key questions they think dealers should be asking before embarking on a partnership with a finance company. We also asked them when they thought it was time for a dealer to start looking for a new financial partner.
Bob Hunter
What should a dealer ask a prospective leasing partner? DLL’s Bob Hunter offers three critical questions:
1. Is the leasing company committed to developing a true long-term partnership and personal relationships at all levels?
2. Do they have a track record of successfully navigating challenging economic times?
3. Do you have industry-specific expertise and an understanding of my customers’ needs?
Hunter says you know it’s time to find a new partner when: “You question whether or not you can trust them with your most valuable asset – your customer.”
Fred Carollo
For Fred Carollo of Everbank, it’s important to ascertain if the financial company is dedicated to the market they serve. He points out that the philosophy of who owns the customer – and every aspect of the relationship – should be addressed and spelled out in a program agreement, especially fees and end of term practices.
Carollo says it’s time to find a new leasing and finance company when: “The leasing partner exhibits conflicting goals with you, the dealer. When you feel a leasing company is not your partner or understands your business, it is time to find a new one.”
Jennie Fisher
Jennie Fisher of GreatAmerica says you need to ask if the leasing company’s values align with your company’s values, and if the lessee is ultimately your customer or the leasing company’s customer. Also, she adds, you need to ask if all things being presented to you will be memorialized in an agreement to protect you.
Fisher says that you know it’s time to find a new leasing and finance company when: “You no longer feel like you’re being treated like a partner.”
US Bank’s Phil Buysse believes it begins with asking what you can do together to help your organization achieve its business goals.
“That should lead into a discovery process to identify those goals and mutual strategies to achieve them,” explains Buysse.
Phil Buysse
Buysse adds: “Beyond the bigger picture of the relationship, it is important to ask the leasing company to put their practices in writing in order to ensure quality treatment of the dealer’s customers from the beginning to the end of the lease, including any potential pre-payment penalties.
“It is also fair to ask for documentation of the performance and service quality of the leasing company’s operational teams and define service level expectations,” he continues.
Buysse believes that is it time to find another partner when: “You no longer see value in meeting with them.”
Rob Parker
Wells Fargo’s Rob Parker explains that as the marketplace changes and the needs of customers evolve, dealers should be asking their financial partners what resources and tools they have available to increase productivity and identify opportunities.
“Whether its help structuring complex transactions, training and development, access to industry data or reporting and analytics that lead to repeat sales, your leasing partner can be a competitive edge,” he says. “Dealers should always ask ‘How can you help me sell more?’”
Parker says that it’s time to find a new leasing comapny when: “The only value that your current finance company brings to you and your organization is a Rate Card and a Credit Card.”
Glen Clark
Glen Clark, also from Wells Fargo, adds that it’s time to find a new leasing company when the leasing partner exhibits conflicting goals with a dealer.
“When you feel a leasing company is not your partner or understands your business, it is time to find a new one,” he says.
Nick Small of CIT recalled a recent conversation with a long-term client about this very topic. Small notes that the client already had a good idea of determining if he was in a good partnership.
“What he looks for in his leasing partners is whether they demonstrate their dedication and love for
Nick Small
what they do,” he says. “In other words, do they invest in their people, their systems, and their products to assure they’re giving their best both today and tomorrow? He calls it ‘Love, Care, Serve.’ Does the leasing provider demonstrate their love and their caring through their service and the value they deliver to dealers and their customers?”
Small says that you know it’s time to find a new leasing and finance company when: “Your leasing provider’s interests and actions clearly are in conflict with your needs. And, after you point this out to them, they don’t make it right or change their ways.”
