The Role Of Credit Financing Companies To Increase The Number Of Motorcycle Sales At PT. WOM Finance Medan Branch

by ADMIN 114 views

The Role of Credit Financing Companies to Increase the Number of Motorcycle Sales at PT. WOM Finance Medan Branch

Introduction

In the rapidly growing economy of Indonesia, the motorcycle industry has become a significant contributor to the country's GDP. With the increasing demand for motorcycles, credit financing companies have emerged as a crucial player in the industry. PT. WOM Finance, a leading credit financing company in Indonesia, has been at the forefront of this growth. This study aims to explore the role of PT. WOM Finance in increasing the volume of motorcycle sales, particularly in the Medan branch. By analyzing the data collected through observation and interviews, this study aims to provide insights into the strategies employed by PT. WOM Finance to attract and maintain customers.

The Rise of PT. WOM Finance

Since its inception in 1997, PT. WOM Finance has become a major player in the motorcycle credit financing industry in Indonesia. Initially, the company focused on financing Honda brand motorcycles, but over time, they had expanded their services to cover various motorcycle brands. This diversification has enabled PT. WOM Finance to cater to a wider range of customers, thereby increasing its market share in the industry.

Trends in Increasing Sales Volume

Data analysis shows a trend in increasing the volume of motorcycle sales at PT. WOM Finance Medan Branch during the study period. The data described in the graph shows that the sales volume increased significantly from 2001 to 2005. This trend is a testament to the effectiveness of PT. WOM Finance's strategies in attracting and retaining customers.

The Significant Effect of Credit Financing

To test the effect of credit financing on increasing sales volume, a statistical test with a significance level of 5% was conducted. The results of the statistical test show that there is a significant contribution from credit financing to increasing sales volume. This is indicated by the value of t arithmetic (T1) which is greater than the value of t table (to) at a significance level of 5%. This finding suggests that credit financing has played a crucial role in increasing the volume of motorcycle sales at PT. WOM Finance Medan Branch.

Strategy of PT. WOM Finance to Win Customers

To attract and maintain customers, PT. WOM Finance applies a strategy that focuses on the speed and quality of services, security, and credibility. In addition, the company also applies the principle of "Character, Capacity, Capital, Collateral, and Condition of Economic" to minimize risks in the financing process. The principle of five C helps the company evaluate the ability of prospective debtors in fulfilling its obligations. This strategy has been instrumental in building customer trust and loyalty, thereby contributing to the company's success in increasing motorcycle sales.

Positive Impact of Credit Financing

An increase in motorcycle sales through a credit financing program has a significant positive impact, both for PT. Wom finance, motorcycle dealers, and consumers.

*** PT. WOM Finance: *** Getting profits from loan interest and increasing their market share in the credit financing industry. *** Motorcycle dealers: *** Record increased sales, expand market reach, and foster business growth. *** Consumers: *** Obtain easy access to get a motorcycle, especially for those who have limited funds, and enjoy the ease of payment.

Conclusion

This research proves that the role of PT. WOM Finance as a credit financing company is very significant in encouraging an increase in the volume of motorcycle sales in the Medan branch. The application of the right strategy, such as fast and quality service, security, credibility, and the principle of five C, has become a key factor in the company's success in building customer trust and loyalty. The success of PT. WOM Finance shows the great potential of the credit financing industry in encouraging economic growth in Indonesia.

Recommendations

Based on the findings of this study, the following recommendations are made:

  1. Expansion of services: PT. WOM Finance should consider expanding its services to cater to a wider range of customers, including those in rural areas.
  2. Improvement of services: The company should continue to improve its services, including the speed and quality of services, security, and credibility.
  3. Development of new products: PT. WOM Finance should consider developing new products, such as motorcycle insurance, to complement its existing services.
  4. Collaboration with motorcycle dealers: The company should strengthen its collaboration with motorcycle dealers to increase sales and expand market reach.

Limitations of the Study

This study has several limitations, including:

  1. Limited data: The study was limited by the availability of data, which was collected through observation and interviews.
  2. Small sample size: The study had a small sample size, which may not be representative of the larger population.
  3. Limited scope: The study focused on PT. WOM Finance Medan Branch, which may not be representative of the company's operations in other branches.

Future Research Directions

Future research should focus on the following areas:

  1. Expansion of services: Research should be conducted to explore the potential of expanding PT. WOM Finance's services to cater to a wider range of customers.
  2. Improvement of services: Research should be conducted to identify areas for improvement in PT. WOM Finance's services, including the speed and quality of services, security, and credibility.
  3. Development of new products: Research should be conducted to explore the potential of developing new products, such as motorcycle insurance, to complement PT. WOM Finance's existing services.
  4. Collaboration with motorcycle dealers: Research should be conducted to explore the potential of strengthening PT. WOM Finance's collaboration with motorcycle dealers to increase sales and expand market reach.
    Frequently Asked Questions (FAQs) about the Role of Credit Financing Companies in Increasing Motorcycle Sales

Q: What is the role of credit financing companies in increasing motorcycle sales?

A: Credit financing companies, such as PT. WOM Finance, play a crucial role in increasing motorcycle sales by providing financing options to customers who may not have the funds to purchase a motorcycle outright. This allows customers to purchase a motorcycle and make payments over time, making it more accessible and affordable.

Q: How does credit financing impact motorcycle sales?

A: Credit financing has a significant positive impact on motorcycle sales. By providing financing options, credit financing companies enable customers to purchase motorcycles, which in turn increases sales for motorcycle dealers and manufacturers.

Q: What are the benefits of credit financing for customers?

A: The benefits of credit financing for customers include:

  • Easy access to purchasing a motorcycle
  • Ability to make payments over time, making it more affordable
  • Opportunity to own a motorcycle without having to pay the full amount upfront

Q: What are the benefits of credit financing for motorcycle dealers and manufacturers?

A: The benefits of credit financing for motorcycle dealers and manufacturers include:

  • Increased sales and revenue
  • Ability to expand market reach and customer base
  • Opportunity to foster business growth and development

Q: How does PT. WOM Finance increase motorcycle sales?

A: PT. WOM Finance increases motorcycle sales by:

  • Providing fast and quality service
  • Offering secure and credible financing options
  • Applying the principle of "Character, Capacity, Capital, Collateral, and Condition of Economic" to minimize risks in the financing process
  • Building customer trust and loyalty through excellent customer service

Q: What is the principle of "Character, Capacity, Capital, Collateral, and Condition of Economic" and how does it impact credit financing?

A: The principle of "Character, Capacity, Capital, Collateral, and Condition of Economic" is a set of criteria used by credit financing companies to evaluate the ability of prospective debtors to fulfill their obligations. This principle helps to minimize risks in the financing process and ensures that customers are able to repay their loans.

Q: How does credit financing impact the economy?

A: Credit financing has a positive impact on the economy by:

  • Increasing access to credit and financing options for customers
  • Stimulating economic growth and development
  • Creating jobs and opportunities for businesses and individuals

Q: What are the limitations of credit financing?

A: The limitations of credit financing include:

  • Risk of default or non-payment by customers
  • High interest rates or fees associated with credit financing
  • Potential for over-reliance on credit financing, leading to debt and financial difficulties

Q: What are the future directions for credit financing in the motorcycle industry?

A: Future directions for credit financing in the motorcycle industry include:

  • Expansion of services to cater to a wider range of customers
  • Improvement of services, including the speed and quality of services, security, and credibility
  • Development of new products, such as motorcycle insurance, to complement existing services
  • Strengthening of collaboration with motorcycle dealers to increase sales and expand market reach.