<div class="font_8">Moderator: JJ Hornblass, Chief Executive Officer, Royal Media</div> <div class="font_8">Featuring: Maurice Salter, President and Chief Executive Officer, MotoLease</div> [toggle title="TRANSCRIPT"] <div class="transcript-scroll-box"> 00:06Maurice, 00:09 JJ All right. 00:10 Please have a seat. Would you like me? All right over there. Okay. Welcome back, everyone. Welcome to day two 00:19 of powersports. Finance. I'm JJ horn blast. so pleased that you're here with us and looking forward to a great day today of sessions. Looking forward to sitting down with Maurice in just a moment. As a reminder, we, we begin our events with charity and want to again encourage you to visit airline flight.org, which is the charity that we support. And I want to thank all of you for allowing us to support this great organization. I also want to once again thank our sponsors for, for their participation and for their help in allowing us to Bring this event to you. First starting with our Platinum sponsors five surf and Yamaha financial services. And also app one Reynolds and Reynolds company Crg data scan factor trust, which was the sponsor of this morning's breakfast, Polaris industries quick track synchrony financial and white Clark group a great thanks to all of them. I wanted to remind everyone questions are through the slideshow app. So slide o COMM And and again, the code is 3533. There were great questions yesterday. I hope you'll continue today by submitting many questions and many good questions. I wanted to mention that you can use your power sports finance badge to attend this evenings. opening reception of the auto finance summit as well as visit the a the auto finance summit exhibit hall. So you're welcome to do that, as well. And that's all for my welcoming remarks. And now I get to sit down with Maurice Salter, please let's give him a warm welcome. 02:26 wasn't bad. It was a good warm welcome. 02:29 All right. I'm done. 02:32 Not yet. Not yet. Maurice. All right. So I'm president and CEO of Motorola. Nice. So you started your career many years ago at a bank of america? No, no, not Bank of America. Where was the first financial services company you worked at? 02:54 I never worked at a financial services company that created them. When I created it was in 1988. While I was at the University of California, I started in academe. So it's a little different pathway. 03:04 Right, right. And then and from there, what was the sort of progression to motor lease? How did you get to it? 03:12 Almost just opportunistically. There was an opportunity in this space we felt in about 2009. Prior to that, I've been largely in the student loan industry, and education. So it sounds a little diverse, but the Bank of America connection was we developed the private student loan program for BFA, which was really a consumer program. And it had the fundamentals technology and everything else that we actually applied to what we do today. So and that evolved into motor power sports because we thought it was a leasing was underserved area in that in that sphere. When you look at auto, it seemed like it was coming for power sports as well. 03:54 I think I don't know if this is true. I think that you're you may be the Only PhD here in the room. Is that? Is anyone a PhD? Here? Don't be shy. It's okay. You only How did you get here? So the question I wonder about is like, you know, what is that? What is that educational experience? What has that law been you 04:20 long it's like my my son used to say that it took me 11 years to graduate college. That was true. I think it was great training. And the problem with the doctorate is everybody thinks they know too much. But it's great training in terms of how to use analytics, how to really think and analyze things critically and effectively. And to me, it was great training, met a lot of colleagues who helped are doing that. And it also made me realize in the end, that I really don't know very much. 04:50 So maybe use that analytical training a bit and share with us your assessment of the overall power sports finance model. market today. I mean, we heard yesterday kind of varying, varying feedback on on where the market is maybe start with a you know an overview on the sell side and boil it down into the financial services side. 05:13 First of all, I want to compliment you and the work that your group's done. For this is a third year we've been at these conferences and they've grown by the number of people the quality of the sessions that you put together and I think the thoughtful process of good people coming together and sharing their ideas openly. I think it's fantastic. We love this industry. 05:31 Well, it was year three that we had you up here so that's, you know, part of the reason why it's all Yeah, okay. 05:36 But in leasing, you look at auto, for example, and me said something about this yesterday, roughly 50 to 60% of all automobiles are leased today, and I'm using leasing because that's my perspective. But lending really falls it to in terms of just volume 7% of motors, power sport, mostly motorcycles, or at least today. We think that that's Just a phenomenon that's catching up to the auto industry. When I talked to you earlier, you mentioned the lag time between power sports and auto. And I think it's true, but it's growing. And part of our vision is that I mean, people, everybody has great technology, they'll tell you that and they're right. So to say you have better technology to me is erroneous. I think the fact is that we all have things we're trying to bring to bear to enhance our business and enhance the industry. And so doing, you just can't turn it over to the audience that you're serving and expect them to be able to use it effectively and let it grow from that product. You have to train people, you have to have really clear instructions. If a mistake can be made, it will. And you have to be persistent on using that technology and growing it and changing it to meet the audience. And when I say the audience, someone has to stay at Well, you really have two audiences. You have the consumer and you have the dealer and they're both important parts of the process. You can't really succeed overall Without both, so you have to be able to use both effectively. And I think that you're seeing that happening. You can tell by the panels yesterday, people are giving a lot of thought to this. They're coming up with great ideas. We love it. We also love the competition, by the way, we think it's a great thing to have makes us all better. And if the industry grows visa V, that it's better for everybody. 07:19 Are you thinking about the customer in 2018? I mean, would you are you expecting? I mean, what are you projecting for 2018? In terms of even just on a sales standpoint, what else lend it doesn't matter what the means of financing is we expect to double our volume next year. But that's your VM. What about industry? 07:39 The industry is going to do it too. I think people talk a lot about what the economics are going to be. Is there going to be a mild recession? Maybe Maybe not. But I think overall, there's going to be growth next year. And I think there's growth for everyone. And if there is, then the industry will continue to take advantage of the fact that we're bringing new products, new ideas. new methods to the industry to help it grow. And that's the key. I mean, the businesses there. People buy and lease motorcycles and powersport vehicles, and they're going to continue to do so. We've seen some unevenness lately, largely due to some of the weather conditions that have occurred. And I think the general ebb and flow of the business. In other words, the busy season, so there's less busy, but we believe this fall will be a really very busy time for the industry. So 08:29 that give us a background on moto lease today. 08:35 How large is the endeavor? What's the geographic reach? And maybe a rundown of the product menu? 08:44 Well, we have over 100 employees. We have offices by la International Airport and by New York. So our main offices are operations or by the airport and we have heavy, that's Dodger, Dodger territory, correct? Well, actually, it's the new football stadium territory. So we have the Rams and the Chargers a block from where we work. So I would think you have 09:05 to be employees. 09:07 Well, and it's a bit of reach for us in terms of people. So we we have over 100 employees, we own and operate all of our own areas of operation, servicing technology, everything we have an office in San Mateo, California for technology. So in the Silicon Valley, and we have reps throughout the country. And so we annual 09:31 lease across the country, or there are 09:33 36 states and we probably won't go much beyond that funny. Why is that certain states are just for leasing now not for lending when it's different, but for leasing. There's certain states that are not conducive for at least our business model. They make you take collect taxes up front for you. Not 09:51 really like which states are these as an example. 09:54 Well, Ohio is a good state that we good today to use as an example. Some states like Rhode Island for anybody from Rhode Island Forgive me but thrown a lot of dealers there. So we're not, we're not going to expend the resources to be honest with you. Alaska Hawaii. 10:13 artist, I'd love to be in Hawaii tonight to go there, but we're not doing business there 10:18 now. So into the product menu, Marie, so what's your average term? You know, what's the range of duration that you'll you'll take, you know, 10:31 we go from 18 to 60 months, we won't go beyond 60. We are average lease is 80 $200. The average lease term is about 36 months. 10:43 And so that that sick that upper end of the term, you know, how much of the portfolio ends up being in that a lot 10:50 because as people pointed out yesterday, wisely, monthly payments are key to this whole system. And if you can keep them lower, you have better results. So people are doing driven into 60 months leases so they can get a lower rate, but they generally turn over their bikes in about 36 months. 11:07 So you said you mentioned that that you handle the entirety of the origination 11:16 cycle? 11:19 Why, first of all, I mean, we have let's talk about even on the servicing side. There are vendors that could help you out. And I just want to understand, you know, what's the thought processes behind this? 11:35 Right? Not that we're looking to do more for sure. But we think it were largely our portfolios, largely subprimes but 70% of subprime, but near prime subprime. And that's a different kind of servicing model. And when people talk about performance, everybody lives by that because you have to get financed to make the loans and leases you do and even if you're the financer, you don't want to see loss curves. Rick's extraordinary in order to do that, it's a very different process than servicing a prime customer, for example, it's very hands on and you have to really move quickly to get things done. one statistic is interesting, when we recover a vehicle, if we can do it after 31 days, and before 60, we have a 90% chance of getting it back. Every 30 days, we wait, it goes down 20%. So you won't need to move quickly. And to do that we want people in house that we train, to know our systems and to react and treat our customers the way we want to be treated. And there are very good sub servicing companies out there and a lot of people use them and we certainly support that it just for our particular purposes. It's good for us to do it this way. 12:47 So of all the elements of the the leasing process, which element to you put the most way to which is the most important to you and also Which do you put the most investment? 13:04 We put the most investment into people. We think it's a customer service business. And the better you do it the better so 13:10 that those people are generally on the front end or on the back end both both. So but if you so it's an equal weighting of investment between those two sides, or what what side of the, of the shop? Well, we think everybody's on 13:23 the front end. Because if they're supporting the people who are then they're part of it too. So and we cross train the people that we have to do various tests, so they understand what other people have to do. But we leave the training, and we're not perfect. I mean, we certainly get our share of complaints, but we try to be and we certainly certainly respond to them. And we, we get them. And for those that don't know, Google has a service where they can actually tell you every time someone launches an issue with what you've done, and we respond to those systems again. So, but in general, to me, it's about customer service. It's about the way in which we can Perfect our data to, to to succeed of what we do, because we all have to succeed. If someone doesn't succeed, it hurts everybody. So you want to make sure the industry succeeds overall. And that's why I've also told you I'll jump around a little bit why some of the things we do, I mean, everybody thinks they have the secret sauce on credit, I get that. But there's some things that we do that we share together, compliance fraud, everybody in this room has the same issue with it, maybe different manifestations, but they're all the same. It doesn't change. There's smart people out there doing bad things. And you have to be on top of that. There are services now the verified bank accounts. Are there certain kinds of credit trends that you can look at, for how people should we say manipulate their credit to get higher credit and get get at least that they never plan to make a payment on? And we are getting we get better and better at doing that. It's surprisingly it's relatively a small percentage of everything. It's like one or 2% we're not talking huge numbers. But that's because you have to be zealous and on top of it. But the severity 15:03 of that can be pretty hard. It could 15:05 be if it gets out of hand, and that's why we watch it. So the way we do, but I think that everybody has the same issues. And when you talk about compliance, there's an A person in the room that doesn't think about the CFPB. And granted, even with the buy here, pay here. payday loans, excuse me, phenomenon just occurred you probably read about. It's interesting that number one, it doesn't take effect of 2019, the director of CFPB is out in 18. And the rule doesn't come effective until 19. But even so, it shows that's an industry that works closely together. And I believe this industry has to do it too. That's why I love what you do. But we think with compliance, that common core manual, everybody has their special compliance to what they have to do in their own area, like if you're a financier versus a dealer versus this versus that. But there's a core set of things that we all have to worry about how you make phone calls, are you Do this how you do that? I think that a common manual for the industry be great. Think about it. If you got a letter that they're coming knocking at your door and everybody submits the same core compliance manual to them, what are they going to do? I mean, they could do a lot less than they do if you're if you if you don't have one, or yours is weak and somebody else is stronger. 16:18 So heard it, Morris is willing to 16:21 work on the Usher. 16:23 Let's talk about risk for a second. So we've been around long enough to remember the late 90s in the auto market, when leasing really came undone. And the culprit of that was errant residual value forecasting or analysis forecasting. Let's start systematically on this. So how do you think about residual value today What is the analysis? What's the residual value analysis that you apply? 17:04 Well, first of all, the we we follow the basic federal guidelines have the lowest residual that you can be compliant and have and that's a 20% residual. So we start with that. And we build closely to it because we do want people to least on so at the end of the lease, they can afford to acquire the vehicle. So our our lease residuals go from 20 to 25%. 17:27 Is this is the is the residual value risks to me? How prominent does this play for us? does it keep you up at night? No. 17:36 And the reason is because motorcycles in particular are great residual items that first of all 95% we do is used. So those bikes have seen some depreciation before we get them to finance and when you think about it, if no matter how you stress the the basic bikes, you're going to finance most of them will have a 50% residual By the time the financing has done some a little more, some a little less. But if we're down to 25, we're happy to get the bikes back at that point because we can we have partnership with NPA, as Emery mentioned yesterday, and we get those bikes there, we're going to make money on those. If people want to own them, they can, if they want to trade him in, they can do that. So we've been very cautious about the residuals when they get too high, which is what happened in auto, then the vehicles come back and they're worth a lot less than the value. You can't make any money on it. But then and then the 18:31 thing that happened in auto wasn't just that they came in too high. It's that they were wrong. 18:36 They were wrong. And they were they were too high. And plus, someone said yesterday to everybody's talking about to find it deeper and deeper. Do that you cheat. If you start changing residuals to get to a lower value, you're probably going to get in trouble even how do you get Do you get pushback from dealers looking for changes in residuals in order to get pushback from dealers for They want to get a deal done. And they want us to do it. And we don't blame them for that we listen. And we look at all those things. And we have a credit committee, we'll sit down and look at all that. And we make some changes based on that. Mm hmm. But a lot of times, you have to say no, if you don't, you're gonna end up with paper that you get back and then people get harmed, and then the industry has a pick up 19:22 from a best practices standpoint, how often does your credit does your credit committee do that kind of adjusting 19:28 once a week, once a week? Okay. 19:30 What is what are we did, you know, as somebody who's so deeply ensconced in the, in the leasing market? What are we to make of the chrome capital situation? What's your sort of lessons learned takeaway from that? 19:45 Well, I mean, I think they had a good product. I think they did a great job in marketing it. Personally, I think that they, I mean, their issues were different. I think the residuals personally were way too high and that got lower rates, but It also affected the value of the bikes later. But it was also financing. You know, you have to be well capitalized at money that you can afford. Right. And, you know, I think it was a convergence of a lot of unfortunate things, but not because it was a bad company. 20:15 What has there been any ramification for motor lease in particular from that? 20:21 I mean, not, we don't like to see people go away, because it hurts the industry, because then everybody starts thinking everybody else is going to go away. But it's good for business. We got more volume because of it. We certainly leased a lot. They were Harley Davidson centric, and we got a lot more Harley leases after that. But that's not the way I really want to get him to tell you the truth. 20:43 Right. Can we look at some questions from the audience? 20:47 Sure. Okay, only the ones that can answer all right, 20:50 well, then I'll 20:51 pick that one. 20:54 Okay. It says leasing this question reads leasing seems to be stagnant In the power sports market, what growth Have you seen in the last one to two years? 21:05 Our annual growth rates 30%. And it's I said 7% of the industry is leasing. We do 85% of the leasing industry right now. And we're growing 30% we plan to double this year. So I think it's a matter of time for it to grow. 21:21 And that's why do you think there's 21:22 even Oh, please forgive forgive me, if more people enter it, it's actually better because then it becomes more of a phenomenon that the dealers embrace, and the consumers embrace. 21:31 What Why do you think there's I mean, there's clearly a perception here of stagnation on the leasing side. I mean, what what is, is there is that 21:39 unfounded found it 21:41 sounds unfounded, I think it's experiential. Maybe some people feel that way. But don't forget our if you're dealing with a 70% sub denier prime audience, then I used to walk into a dealership anywhere and getting a lease. This is a new thing for them. And then we treat them in credit the same way we treat a tier one top credit person they get instant access. They get all electronic everything we do for tier one we do for them. So I think that's a new phenomenon. And one item is that, you know, you look at credit, we looked at, we always looked heavily at debt to income, it doesn't really make a huge amount of sense for us to do that in subprime because they're not used to getting credit in the first place. So their debt to income ratio, and its credit report is not going to be very high. So I think income, for example, is a much more effect. 22:27 What's your FIFO floor? 22:29 We don't really have one. I mean, I'm sure we've leased too close to 400. And at times, but for the right terms, but they'd have to be pretty right for that to happen. Yeah, so generally, that's not I mean, but we'll go through. We don't really have a cutoff to say we want to 22:46 look at a lease, moto lease recently made it a requirement that all subprime customers enroll in bi monthly payments, 22:54 semi monthly. Semi monthly, semi monthly. Yes. Yeah. 23:00 Could you please elaborate on this decision? 23:04 Yes, the Federal Reserve Board in New York just came out with an article last month anybody wants it, I'll send it to you. I have it with me actually. And it was based on mortgages, but their findings were that any subprime near prime individual who has twice a month payments, has a 55% better chance of that payment succeeding individually each payment than without it, that's for semi monthly. And that says it all, and that's for mortgages, but they said it was for any consumer product. And, and we believe that strongly and, and that's why we, it took us a year and a half to put this together. It's not easy to do. Mm hmm. Because that every every time you look at something, I have a project manager, I mean, want to see him again, because everything has something to do to connect to it to make it more complicated, but 23:53 I mean, what was the what was the real? What was one of the complexities to that and what what kind of 24:00 Well, you have to pick which days you're going to debit account 95% 98% of what we do is our as auto debit. So you have to know when you can debit an account that where there'll be money and it doesn't do it. If you do it on the 12th of the month, I guarantee you there's nothing in there. So you have to be careful with age you pick. And then how do you determine the late payment? How do you determine a missed payment? How does that all crew, all those things are part of the financial model. 24:28 Somebody asked whether whether you expect any, or experiencing any pushback on this semi monthly. 24:37 First of all, on our top three tiers, we give people choice, they can choose to do monthly or semi. On the bottom tiers. We're going 100% similar, and I think we all know the same thing. If people can get credit, that's what they care about and their monthly payment. We can make it lower and help them make the payments. They're going to do it and I think they'll embrace it. 24:57 Why don't you lease new product 25:01 Why don't you lease new products to prime customers? 25:05 We would love to. We have a new product financing to. It's just that and we do that. So 20% of ours Oh, okay. Good. 25:22 leasing is a popular mechanism for subprime, Pre Owned financing. what needs to change in order to advance prime lease products to facilitate new unit sales? I think it's, 25:37 quite frankly, it's dealers encouraging people to look at it as an option. I made a comment yesterday about the guys going in and coming home with a bike they leasing it, don't worry, I didn't buy it. And I can give it back in 36 months or 24 months. And I think the manufacturers should love that too, because they're getting a new bike on the market and that period of time remember people's credit, we report to the agencies credit, their credit goes up over time if they're making payments. So by the time they finished a two or three year lease term, the credits risen. And if it's risen, then they're going to get a better deal on a better vehicle, and you're going to sell them a new bike. So I think that's another advantage to leasing that I don't make too much of a case here. If you all convert from loans to leasing, I got a problem. But the fact is that they can actually sell more vehicles. I think that there's some novelty to do it to subprime that hasn't been done. Anything that's new is always met with some caution, as it should be. But as far as new vehicles to prime customers, look, I don't know how many people in the room like leased a car, but about half of you do according to statistics, and most of you have good credit because you're around this stuff and you know that so why are you leasing because you want a new car in three years, or because you think it's a business write off whatever it is, you're leasing, okay. And that's the same phenomenon with prime customers. In Marseilles, it's no different. They want a new bike and every two to three years, and forget alone for at least four months, they're not getting rid of that vehicle that easily that the buy it out. But someone said, you know, that's the phenomenal people buy the vehicles out, well, they buy them out, because they don't want to keep it for at 18 months or any four months, if they had a lease where they could turn it over. And I mean, if it's a 36 month lease, and they're paying on time, you're gonna get in touch with them, like car manufacturers do in 24 months saying if you'd like to get in a vehicle, come in and talk to us. 27:29 There's a question here from the audience on your dealer 27:32 network. And so maybe you can be how many dealers are you working with? And what's the change year over year change rate in your dealer base? 27:46 Well, we we get a on average about at least a half a dozen new dealers a week that we used to go out and have to go to dealers, meet them and talk them into signing up now. We get them coming to us for that we have over 1000 dealers in our network. But as anybody in the room knows 20% of your dealers become your most active customers. So we try to cultivate those and work hard with them and also to bring through new dealers, we have some active work we do on mean, you know, if you get 1000 applications in for financing, whatever sort it is, maybe 12 to 15% of them are going to turn into buyers where you actually sell them something, what do you do with the rest of them? So, we have people that contact them and cultivate them and work with them to help to convert them as well, 28:33 any any kind of commonality among that 20% that you you know, that 28:37 that you've seen? 28:39 Yeah, that 20% that seems to No 28:40 Actually, I mean, some of them were small dealers, and they didn't have financial options that were available to them. They're good business people and when we provide a financing, they could grow their business. So they grew with us with us, we like that. But we you know, we have, you know, manufacturer dealers that we use and work with, I think that areas change A lot too with us vehicles, blending in with the new vehicles that they they sell 29:05 you. We were also talking before about how there's an increase in dealers selling beyond their immediate geographic footprint because of online sales and so on. What are the ramifications of that for for you? And what are the ramifications for fraud prevention? 29:29 Well, it's not just limited to that estate sales for fraud, fraud prevalent and everything but true, but in terms of well, I could tell a couple of things number one, I think that the internet ability to publicize what your inventory is, enables dealers to to sell to other states, they become very good at shipping. We don't have anything to do with that. They'll ship the vehicle to the list. Let's see your buyer. The the the biggest issue for us is it's often harder to get titles when you ship a bike out of state Because the title is based on the geography of the lessee, not the dealer, so you have to go through another DMV in another state, some of them, not easy to deal with, it takes longer to get them and we require a title. So, as far as the frog goes, I was telling JJ that the one thing if you get a call from someone who wants to transact the vehicle over the phone and have it shipped to an out of state address, you've got to be really careful, because identity theft is perfect for that. And then what they'll do is they'll have the bike shipped to an address, they'll say, Well, I can't be there, but my nephew is going to be there. And they take delivery of the bike and you'll never see a payment or anything. That bike will be parted out in about a day, or sold on eBay or Craigslist in a day. And it's gone and you lose a vehicle and you can't even recover it. 30:49 There are a couple of just sort of nuts and bolts questions, maybe run through a couple of them quickly. Do you report to all three credit bureaus 30:59 we Are we reporting all three? But yeah, we do all three right now. 31:04 Are there? What are the mileage limits? 31:07 We don't have any tab? 31:10 Is there an opportunity, in your view to lease products in other sectors in other parts of power sports, other types of power sports vehicles? So snowmobile marine offer, perhaps? 31:28 Well, we like to say if it floats, we usually won't lease it. But why? Because you can't get them back. Okay. I mean, 31:39 and they ended by the way, they also, generally, they're used heavily, right. So there's a couple factors. So we tend not to so 31:48 I guess the answer is not really 31:50 not really not really. Okay. And we don't need Jesus to tell us that. 31:56 I like the reference. Okay. How do you deal with excessive accessories on your leased units. Do you add back the value of the accessories to the residual? 32:06 We? It comes it's part of the funded amount of the vehicle. So yes, it would be added back on. Okay. 32:15 I know you met or maybe you didn't I don't think you said the average age of the motor cycles you lease. 32:23 The average age of a vehicle release is probably five to six years. So 32:27 has that changed at all? 32:36 I don't know if this is 32:37 one of those questions. I'm not sure you're going to answer but whatever. Harley Davidson 32:43 gonna bridge this. So Harley Davidson bike seemed to be ideal for leasing and CPO. Why do you feel that they haven't revisited leasing? 32:57 Why Harley Davidson hasn't Yeah. 33:00 I can't answer that question directly, because I don't really know. But I think that they have a proven model that they like they're a bank. So loaning money is a little more consistent with what a bank would do. Right? Harley Davidson financial. I think they think their model is one that works well for them. Lately, they may want to look at that and, and they also have a program where they have actually they do leasing but they bifurcate what they take and what they then send to others to find it. So, so I think it's in their wheelhouse. 33:35 What do you think of that product? From a risk standpoint? 33:39 I think it's great. I mean, not not a great risk, but I think it's great to finance them. Mm hmm. They're generally they're expensive too. So you know, you do have more risk in terms of value. And if you're dealing with the near to subprime market, those bikes unless you get down to the low cc bikes, you're not going to be able to afford them. So that that Issue 34:01 somebody has How do you control residuals with no limit on mileage? 34:06 Easily? I mean, we, it doesn't become an issue your mileage does not affect what we do in terms of people don't put them much mileage on bikes that we have to worry about it. Some do. Some don't. Remember we have GPS isn't all our bikes that we lease, and they have geo fences is too far how far they can go outside of the home address that they released 225 miles. So people, they're not driving around, 34:32 meaning the the year you're saying to them, you can't go beyond the hundred 25 miles or 34:38 you just know when they do we know when they do. If they're paying to be honest with you. They're paying at least we don't do anything as long as they're current. Because if someone's current, you don't want to tamper with them. 34:48 So you're doing analysis on their on their usage. Yes. And what have you learned that you is kind of surprising to you, I guess. 34:59 Well, we You know, we ping them every day to know what we just want to know that that GPS is working. That's why we do it. And we don't have kill switches and on the freeway where we turn them off we don't have anything that we do with them except know where they are. That's it. Mm hmm. And it helps the lessee to that we get calls all the time someone's bike was stolen, are they sometimes they can find it they forgot where they left it had a rough night the night before they were in Vegas, whatever. And we help them get we'll tell them where it is or we don't the biggest one we get as wives calling want to know where their husbands are? That way 35:34 it's a full service operation and moto lease. 35:37 So we tell him it's two payments behind you make the payments will tell you 35:43 nice nice 35:45 final question final question so 35:48 maybe think I'd like you to think 10 years out 10 years longtime lotsa what do you what do you think the power sports finance industry little Looks like in 10 years? 36:02 Well, it's it's got a huge amount of potential. So I mean, I think it's going to grow in the in the area with a being in front of dollars is going to grow, financing is going to grow. I think that the ease with which we allow people to get financed make to apply for financing not just to get it is going to change the paradigm. And I think that it's voice to do that. motorcycles are not just a form of transportation, they're a lifestyle. Anytime you have that people are going to want to continue to to be involved with it. Remember something else 70% of all motorcycles and powersport mostly motorcycles are sold consumer to consumer. And people are starting to move into the area of looking at that as being a transaction that can be had through a dealer through another third party, somebody who's doing financing for that area. And so, if you look at that the number of people that you can bring bring into the financial sphere for all the services represented in this room. It's huge. And I think that'll happen. 37:06 Thanks, Maurice. That's thank Marie Salter. Thanks. All right. 37:16 Okay, so as I ask 37:21 Emma and her and her speaker to come on up, I wanted to remind everyone </div> [/toggle]
