Robert Soucy moderated a popular session at the annual Marine Dealer Conference & Expo in Las Vegas. Five well-known panelists in the industry answered questions about the staggering economy and the effects on the future of the marine industry. These panelists included Bruce Van Wagoner with GE Capital Solutions, Scott Anderson with Merrick Bank, Glynn Cooper with Marine One Acceptance, Peggy Bodenreider with National Marine Bankers Association and John Dorton with MasterCraft/NMMA.

Three areas were covered: wholesale financing, retail financing, and repossession and liquidations. Wholesale financing has required a partnership with a bank or lending institution. Today, however, the banks are reducing their commitment in the industry. So, new sources are needed. Dealers need to work closely with the manufacturers, especially to get help in dealing with aging product. A partnership needs to be developed between the dealer, the manufacturer and the vendors. There may be new requirements for obtaining financing. A larger down payment may be needed; financial statements may be required more often. Pre-owned boats may also be a good way to keep customers coming in and offering them a choice.

Retail financing is a key element to gaining and keeping customers. Standards have tightened; a larger down payment may be required; income needs to be verified. A good source of help may come from the 20 Groups. It is important to communicate with others who also may need help. With many working and talking together, a solution is more likely to come about. Dealers also may need to adjust their expectations. They may need to be more conservative in their expectations and goals. They might want to consider a joint venture with the wholesaler.

The third topic discussed was repossession and liquidation. When an individual can no longer may payments on a boat a bank may repossess the boat. Since the banks are not in the marine business, they will try to clear it off their books as soon as possible. They will likely go to a liquidator who will try to sell it as quickly as possible. This results in boats being available to the public at a much reduced price. This is good for the consumer, but a problem for the dealer who might be trying to sell that same boat in his dealership. This scenario can open a new avenue for the dealer to purchase that boat at a reduced price and have it in his inventory for the consumer. There may be many failures, but with them is an opportunity for others to share in that customer base. There is no quick remedy. Dealers need to be active, positive and customer friendly.