UPSIDE DOWN

Everyone talks about trade equity, but what happens when that equity isn’t positive? Assuming that a customer has a Powersports unit to trade, but they’re upside-down on their loan because of a poor financing deal, how are you going to both help them get out from underwater and keep your own profits afloat? It’s a delicate balancing act, but it’s one that you can train your team to handle in any situation. You won’t come into as many situations with negative equity and upside-down loans in the Powersports industry as you do in the auto industry, but it does still happen and you need to know how to handle it if your business is going to succeed. Powersports Unit Trades are everywhere you look.

It is still possible to take trades where customers are upside-down on their equity and make money from them if your team knows how to make the best deals. It may be harder to help customers get the units that they want if they have a negative trade to work with, but it isn’t impossible. Depending on their credit situation, some customers may end up getting financing for their new unit that will also cover what’s owed on the old unit after the trade value has been taken out. The only problem here is they start out upside-down again, but this may not matter as much to those who intend on paying off their loan sooner or refinancing when they get the chance.