Financing Smarter: Beyond Promotions to Real F&I Success

For many dealers, the finance conversation is dominated by OEM promotional programs. Sheffield Financial and FreedomRoad Financial both deliver strong national programs, with OEM-subsidized rates, promotional campaigns, and the ability to finance pre-owned units under certain conditions. These programs are important — but they shouldn’t be the only tools in your finance toolbox.

Why Indirect Lending Matters

Too often, dealers assume customers are either:

1. Cash buyers, or
   
2. Only motivated by headline promotional rates.
   
   

That assumption leaves a margin on the table. The reality is that many customers will accept — and even expect — more traditional finance structures when they are packaged with convenience, trust, and tailored programs.

By guiding more customers into indirect lending with local or regional banks and credit unions, dealers create:

• More profitable deals through stronger reserves, flats, or participation opportunities.
  
• More tailored programs that fit local buyer expectations (especially with credit unions where customers already have accounts).
  
• More F&I success by bundling financing with protection products in a way that promotional APRs often limit.
  
  

Down Payments and Smarter Structures

Another missed opportunity is down payments. Dealers often fall into the trap of assuming “nobody wants to put money down.” But setting expectations for 20–25% down where possible helps:

• Lower lender risk and increase approvals.
  
• Create stronger equity positions for customers (reducing negative equity risk).
  
• Improve participation income for the dealership.
  
  

By normalizing down payments in your sales process, you strengthen both lender confidence and dealership profitability.

Where Sheffield and FreedomRoad Fit

• Sheffield Financial: Backed by Truist Bank, it remains a leader in OEM-driven promotions and national campaigns across powersports, OPE, trailers, and marine. Great for rate-sensitive deals tied to OEM marketing pushes.
  
• FreedomRoad Financial: Backed by Old Second National Bank, with a strong motorcycle focus and programs through Triumph, KTM, Husqvarna, and others. Useful for new riders and buyers with thinner credit files.
  
  

Both are essential partners, but relying solely on them (and OEM promotions) can lead to a narrow, less-profitable F&I strategy.

The Balanced Approach

Smart dealerships diversify their finance portfolio:

• Use Sheffield and FRF where promotions are too strong to ignore.
  
• Guide customers who are less rate-sensitive — or who already trust local banks and credit unions — into regional lender programs with stronger reserve opportunities.
  
• Normalize down payments to improve deal structure, lower lender risk, and open more room for profitable F&I product sales.
  
  

Bottom Line

OEM promotional financing plays a critical role in retailing major units. But if every deal flows only through a promo program, you’re leaving significant money and opportunity on the table. By leaning into indirect lending relationships, structuring smarter deals with down payments, and broadening the lender base to include local and regional banks and credit unions, dealers set themselves up for true F&I success — higher approvals, stronger margins, and more sustainable customer relationships.