AFC enhances its pre-owned flooring plan
June 26, 2013
Filed under Features
Automotive Finance Corporation (AFC) has been in the powersports realm for years, but the company recently improved its pre-owned flooring plan in the industry. Powersports Business caught up with Neill Waters, vice president of business development and product management at AFC, to learn more about what the company has to offer.
PSB: What type of financing services does AFC provide to the powersports industry?
NW: AFC is a commercial lender, providing inventory financing solutions, or floorplan lines of credit, to dealers who are focused on sourcing and selling used powersports inventory.
PSB: What types of powersports vehicles do you finance?
NW: We finance a wide array of vehicles, so AFC dealers have great flexibility in the types of powersports vehicles they can place on their floorplan. The most commonly floored vehicles are motorcycles, snowmobiles, personal watercraft and off-road vehicles, including dirt bikes and ATVs.
PSB: How long has AFC provided inventory financing solutions for powersports dealers?
NW: We have provided inventory financing solutions to powersport dealers for many years, having recently enhanced our offering in this space to meet the unique needs of powersport dealerships. AFC’s inventory finance product aligns nicely with this segment by offering competitive and flexible terms to dealerships seeking a financing solution for their used inventory. This enhancement, coupled with our existing infrastructure and expertise, has allowed us to attract more and more powersport dealers recently.
PSB: AFC is affiliated with ADESA, right? Does that mean vehicles can be only be sourced from ADESA?
NW: Although AFC and ADESA are sibling organizations under KAR Auction Services, Inc., AFC dealers are able to source and floor powersports inventory from more than 1,000 approved auctions throughout North America, including the ADESA auction network. AFC will finance 100 percent of the price paid if purchased via an approved auction. We also accept dealer trades and can help facilitate this type of transaction by paying the lien holder directly so that the dealership does not have to use its own cash to pay off the lien.
PSB: What are the benefits to a powersports dealer who uses AFC to floorplan inventory?
NW: A few items come to mind. First and foremost is AFC’s local market presence. We leverage our network of over 100 local branch offices and field staff to provide optimal, in-person service. AFC’s presence allows us to meet the needs of our dealers locally, which largely benefits the dealer. Many of our offices are located inside an ADESA auction, allowing our dealers to pick up titles, make a payment, or speak to an AFC representative in person while attending the auction.
Secondly, AFC offers dealers online as well as mobile tools to meet their business needs. AFC’s online presence and mobile tools allows dealers to schedule payments, floor trade-ins and view their payment history, to name just a few features. In other words, we’re able to work with dealers in anyway they’d like. If they prefer to work face-to-face, we can certainly do that by leveraging our local offices; if they want to work with us electronically or remotely, we can accommodate that too, via our technology solutions — online at AFCDealer.com or the “AFC on the Go” mobile app, available for iPhone and Android devices.
PSB: Pre-owned financing can be difficult for some dealers to obtain. Why is offering a financing solution to powersports dealerships an important service for AFC?
NW: Many commercial lenders specializing in inventory finance focus their attention on new inventory and view used inventory as a higher risk to their portfolio, often requiring dealers to jump through additional hoops for an approval. Conversely, AFC’s focus for over 26 years has been on the independent dealer that sources inventory from auctions, private party purchases or trades. Our intense focus on this particular segment allows us to efficiently and effectively serve independent dealerships in an area.
PSB: What does the future look like for AFC and pre-owned inventory financing?
NW: We are very excited, after many years of financing powersports, to offer a product which caters to the unique needs of powersport dealers sourcing used inventory. In addition to enhancing our powersports product, AFC made significant investments creating and implementing a comprehensive training program for all of our employees to be better positioned to service our powersport dealer customers now and going forward.