In Part 1 of our Virtual Leasing Panel in our May print edition, our panelists discuss new products and programs available to dealers who are moving to a more services-oriented model, how their organizations are enhancing their relationship with dealers, trends impacting their business, and the one piece of advice they’d like to share with our dealer audience regarding leasing. Here, in Part 2, our panelists panel discuss the programs they’re creating for non-traditional products as well as the programs they’re rolling out to meet the needs of dealers selling production equipment.
Panelists include Michael D’Errico, office imaging commercial leader, CIT Equipment Finance; Fred Carollo, VP originations office products, Everbank Commercial Finance; Jennie Fisher, senior VP/general manager, Office Equipment Group, GreatAmerica Financial Services; Phil Buysse, general manager, US Bank; and Rob Parker, title, Wells Fargo. We did not receive responses to our questions from DLL.
CR: Could or would your leasing company be open to considering or allowing one of your traditional office equipment dealers to run other non-traditional products through them with dollar buyout terms?
D’Errico: Of course! We are a bank with expertise in a variety of markets and verticals. We can do many different things, including non-traditional products, and if that is important to the dealers’ business, then we want to be a part of that.
Carollo: We have and will continue to be open to what our dealers are offering to their market and how we can assist in providing them with financing options.
Fisher: Absolutely, we perform due diligence on new products and services in the market on a weekly basis. A recent example of this is the new label printer program we launched at ITEX with Muratec. By doing our due diligence and understanding things like pricing, method of delivery of the service, and the exact benefits of the product/service, we are protecting our dealers too, and I think they appreciate that. Depending upon the product/ circumstances, we are not always limited to a dollar purchase option agreement.
Buysse: Yes. We do it today with several of the products that dealers are expanding into. We have extensive history in all types of equipment as well as many other equipment finance divisions to rely on for expertise. We are able to consult with our clients on the pros/cons and best methods to finance various equipment types.
Parker: Yes, we absolutely provide dollar out financing for non-traditional collaterals sold by our dealer partners. We view this as an area of strength for Wells Fargo. Our product analysis groups is very flexible with these requests.
CR: Another area that we think offers great promise to the dealer community is production equipment. Are you offering programs to deal with that segment of the industry? And is there still an opportunity to work with a leasing company despite what some dealers have told us about getting zero percent financing from their manufacturers on their production equipment?
D’Errico: We offer customer solutions for dealers that are based on their needs and goals. At CIT, we are prepared to handle any segments of the industry where our dealers are looking to grow. Whether rock-bottom rates are offered by a manufacturer’s finance captive or other leasing companies, such value is only part of the equation for dealers to consider when determining who to trust to properly service their customers. As dealers themselves know when they are selling their offerings, the best customers are those who appreciate the total package and the lifetime experience they expect to get from that dealer. Such an approach is how most dealers that we work with operate. It’s how we operate, too.
Carollo: We are focused on production print as a niche market for our dealers. This equipment is quite profitable to dealers and manufacturers. Zero percent programs are designed around strong end-of-term values. Those values fluctuate with the profile of the end-user. With that in mind, we have been very effective on transactions for a number of our dealers in the preferred use-case of the equipment.
Fisher: We offer a standard finance solution for wide format and do have a number of dealers who choose to work with GreatAmerica. From time-to-time we will customize a solution for dealers. That said, it can be a challenge to compete with the manufacturer zero percent programs and rebates.
Buysse: Yes, we offer production programs in both dealer and manufacturer supported programs. Both are heavily utilized, so it appears there is plenty of opportunity.
Parker: We offer a production print program as we do recognize the importance of this segment. Credit can sometimes be challenging in this segment so we will work with dealers on non-traditional solutions depending on the collateral, customer profile and deal terms
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