Sheffield Financial has made significant changes to its pre-owned powersports financing program, introducing new eligibility criteria and incentives aimed at helping dealers move used inventory. The updates significantly widen the pool of financeable units, making more vehicles eligible for financing. This expansion is expected to provide dealers with more flexibility when structuring deals, particularly on higher-mileage or older inventory that may have previously fallen outside traditional financing guidelines.
The expanded age limits now allow off-road vehicles to be financed if they are model year 2016 or newer, while on-road models qualify back to model year 2006. This change is likely to benefit dealers who have been struggling to move aged inventory, as it provides more options for customers looking to purchase a used powersports vehicle. The increased advance policy also gives buyers more flexibility, with loan advances now up to 135% of Average NADA Retail Value, based on customer creditworthiness.
Furthermore, buyers can now finance an additional $2,500 for cancellable back-end products, including service contracts and warranties. This addition provides dealers with even more opportunities to structure deals and provide value to their customers. The updated program is a significant step forward in making used vehicles more accessible and easier to purchase, but it also highlights the ongoing challenges faced by dealers in driving sales volume.
The move is seen as a key opportunity for dealers to drive volume and improve inventory turns, particularly in a market where affordability pressures continue to affect new-unit sales. With the updated program, dealers are now better equipped to compete with other lenders and provide more attractive financing options to customers. The expanded program is expected to benefit dealers who have been struggling to move aged inventory, as it provides more options for customers looking to purchase a used powersports vehicle.
The new incentives offered by Sheffield Financial are also likely to have a positive impact on dealer margins. Dealers can now earn up to $400 per eligible transaction, providing an additional margin opportunity that can help offset the costs associated with holding onto aged inventory. This increase in incentives is expected to encourage dealers to be more proactive in marketing and selling their used powersports vehicles.
The updated program is available for qualified applicants through participating dealers. Sheffield Financial operates as a division of Truist Bank, and dealers are encouraged to contact their Sheffield representative for full program details and eligibility requirements. With the expanded financing options, dealers now have more tools at their disposal to serve their customers and drive sales volume.
Overall, the updated pre-owned financing program is a significant step forward in making used vehicles more accessible and easier to purchase. The expansion of eligibility criteria and incentives is expected to benefit dealers who have been struggling to move aged inventory, as it provides more options for customers looking to purchase a used powersports vehicle. However, the ongoing challenges faced by dealers in driving sales volume remain a significant concern.
The updated program highlights the importance of flexibility in the pre-owned financing market. Dealers need to be able to adapt quickly to changing customer needs and market conditions, and the expanded program provides them with more tools at their disposal to do so. By offering more attractive financing options and incentives, Sheffield Financial is helping dealers to drive volume and improve inventory turns.
As the used vehicle market continues to evolve, it will be interesting to see how this updated program impacts dealer sales and profitability. With affordability pressures continuing to affect new-unit sales, expanded financing for pre-owned units presents a key opportunity for dealers to drive volume and improve inventory turns. The success of the updated program will depend on dealers' ability to effectively market and sell their used powersports vehicles.
The updated pre-owned financing program is a significant step forward in making used vehicles more accessible, but it also highlights the ongoing challenges faced by dealers in driving sales volume.
