August 26, 2020
Whether it is house, a car, or a piece of construction equipment, it is hard to make a big purchase without financing. The same goes for our customers. The Cat Financial Aftermarket Solutions (CFAS) team is supporting enterprise services growth by offering several financial products for customers – no matter the industry or application.
Customer Value Agreements.
By now you might have heard of Customer Value Agreements (CVAs) and how they offer a hassle-free maintenance solution. The new Cat CVA by Cat Financial drives competitive advantage through convenience and portability across U.S. dealer territories. The team has built a platform that will enable the sale of Cat CVAs directly to customers by leveraging the Cat Financial framework and its significant customer touchpoints at the point of sale.
Just like a credit card for your favorite store, the Cat Card gives customers credit for parts, services and rentals. Currently in North America, both commercial and consumers cards are offered and accepted at all Cat dealers and rental stores. The card has perks just like you’d expect in your personal cards - no annual fee, low interest financing options and 24/7 online account service.
Cat Prepaid Credit.
Cat Prepaid Credit is like getting the best kind of gift card! It comes as an electronic certificate that can be used toward the purchase of parts, service, sales, rentals or work tools at any Caterpillar dealer in the country of issue. Currently available in the U.S. and Canada, these credits have a number of uses including goodwill, tradeshow giveaways, customer service recovery opportunities and much more. Research shows when a customer redeems their Cat Prepaid Credit, they’ll spend two times more, driving incremental sales to our dealer partners.
Just like leasing a car, there are many reasons for leasing instead of owning equipment, so of course we offer lease options as well.
An operating lease is a contract that allows the use of a machine but does not convey ownership of the machine, and FPD offers two types of operating leases – the Cat Value Option lease and the Fair Market Value lease.
The global operating lease platform can be used to upsell services at the point of sale, throughout the lease term and beyond due to Cat Financial’s exclusive customer data and access. By packaging CVAs with operating leases, we can achieve:
Higher part sales per lease
Increased marketability and profitability of eligible lease returns by branding as Cat Certified Used and reselling with CVA agreements
Targeted marketing campaigns to offer CVA renewal and Cat Card lines of credit for parts purchases by using operating lease machine hour data.
In addition to these products, Cat Financial also provides secured and unsecured financing for rebuilds and repairs as well as extended protection for machines and engines on a global scale.
The organization is in a great position to support this growth through their over 280 salespeople across the globe, over 11,000 interactions with customers per day, world-class customer service and their insurance expertise and infrastructure.