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| finance manager at a car dealership image |
My career in the automotive sector was something that worries me for a number of years. I started as a salesman and worked my way into management, including as CFO. I'm a very successful car and left the company to spend more time with my family and sleep better at night. I know, extended automobile warranties in my hand. I will share with you information that you can choose to use or not use.
Warraties used car extended to add most of the profits from the sale of a used car. It is usually the product "back-end", which is sold by the CFO, you have often said how much he adds to your payment, rather than to tell you exactly how much you pay for it. For example, "extended warranty for 3 years only add $ 20.00 to your monthly payment," sounds a lot better than that, "you can get a warranty on the car for $ 1,200.00." I'm sure you catch my drift.
Here's the real kicker, when it comes to extended warranties. Finance manager at the car dealership that has spent time in the company of the ship honed representation of numbers to make them less intimidating. Lower total cost of extended warranty up to a month or daily cost can make the numbers look much smaller than they really are. What is absolutely shock you to know that the extended warranty is sold for more than $ 1,000, and the car dealer is usually only cost a dealer about 100 hundred dollars.
Thus, an extended warranty on a used car, you can pay directly for an extended warranty company car used to cost hundreds of dollars, if not more than $ 1,000 more if you buy through a dealership. This is 100% proven, because I wrote many, many extended warranty contracts of service for the people.
While the extended warranty can be stretched and nailed on top of your auto loan for a few years, he paid for every dealer. After CFO was awarded a contract in hand and signed by you, the total amount you end up spending for this service contract is payable to the concession for the car loan company finance the purchase of a car. Then the dealer, in turn, sends a check for the actual cost of an extended warranty for the corporation.
That's not all ...
It can be very confusing for consumers when they are explained by the differences between one and the other extended warranty. In the automotive sector, there is something that is considered to be bumper to bumper powertrain warranty. What is it, this is a guarantee that the power unit, which sounds really good, bumper to bumper when words are put with him. This only applies to the engine and usually only the internal components of the engine, gearbox and mechanical parts solids movement. It will not include the alternator, air conditioning system, or one of the other more common components to fail.
By selling you "bumper to bumper" powertrain warranty, the cost of this financial product dealer incredibly low. Ethics broker dealer which cost $ 100 can cost you $ 1,500 to the cost of the guarantee and finance charges you pay on that amount, which puts a number on your auto loan.
I am the Director of Finance of franchised automobile dealers for most of my working career, and let me tell you, there is a lot going on behind the scenes that has not been said. Even with all the knowledge of the Internet and hidden camera it shows that there are still things that most people do not know. How corrupt some dealers may even benefit from the most famous customer with less than perfect credit. In fact, the mortgage buyers, some of our most profitable customers. I think that this statement will surprise many people. I will try to answer the most common questions that people ask, but we never meet.
Why do I only look at some cars? If you have ever been car shopping with bad credit, retailers are likely to show you, only 1 or 2 cars cars.The they show that you are the ones they will make the most profit from. Any car dealer advertises for bad credit is a kind of software or computer program that once funding Manager plug on rates, terms, and deposits will be transferred to inventory at a profit. The secret is that they say vendors show you one or two cars that are at the top of the list for profit. Seller say things like, "This is what the bank has approved for" or "It's in the guidelines of banks" so that you get excited because you know you can get approved this car! However, there are a lot of other cars that run on your approval, we simply do not make a lot of money on them. This software is very complex and allows maximum profit. That's why bad credit customers are so profitable for the dealer. You do not see that we dare to try to show the client Tagged with 800 grade we want cars they buy. We rely on the fact that you are so excited to be buying a car that you can ignore our tactics. Selecting a vehicle that suits your needs and price range. This leads me to my next tip.
What is the price of the car? As finance manager, I will ask that the seller does not respond, so my program, which has chosen the car you can set the sales price. Remember, a computer program that I mentioned earlier? Well, one more thing, he will tell us how we can sell the car, based on how much the bank will lend. The price that we want to sell you a car for perhaps hundreds, if not thousands, that we have a car for the price really. Customers with excellent credit have been specified price to the seller on the list. Seller will not say anything at the time you drive a car without letting you know how it is. My preferred online retailers used "bank will set the price", which is true to a point. The Bank will set a maximum they will finance a car, and we want to make sure that we get every penny of it. I do not think they're looking for you, they need our business, the more the bank will lend to a business car, we will give them. Therefore, most of the banks is quite generous and lend a little more of the book value of the vehicle.
What is the value of my sharing? If we do not have the sales price, you negotiate everything they want it to be worth it. Another good reason not to tell you the selling price of the car that I can show something for your business and not lose a penny. In fact, even at this stage, if your provider will tell you the price, I can still make extra money on the trade. I'll tell you how it works in both directions. If you do not know the selling price, and that you tell your dealer you want at least $ 1,000.00 for your business, and they were all really appraised at $ 500 is all you need to do is to increase the selling price of $ 500 I can to show you what you want and will never give you any real discount. If you know the selling price, and we always put a value of $ 500 in your work, I can just tell you that your car is the value of $ 400 and keep the other percent more profit. I use low numbers here to keep things simple, but "sub-letting", as it is called, can hold a few hundred dollars at auction worth thousands, as it usually happens. More money in your pocket.
It is the best interest rate I could get? Let me ask you a question at this stage. Do you know your credit? If not, then I'll take it. I am always shocked by this type of financing costs involved in bad credit loans, high interest loans. Often I see people paying interest rates much higher than they were for him. The financial cost of auto loans with a higher interest rate can run up to $ 15,000 dollars.There simple things people can do themselves to improve their credit rating, which would save them thousands of dollars with very little time and money. I will never tell you that in my office, because I want you to buy a car, do not go home and rebuild your credit. Rate of 2-3 percentage points higher than it should be literally cost you thousands of extra money for a period of 5 to 6 years, the majority of vehicles financed. If you think it's worth to have a car for a few days early in order to go ahead, otherwise, do the research and take the time to work on your credit and increase your credit score.
Many time management in the new showroom is actually a big obstacle to selling cars than the skills or the lack of new car salesman or a new car saleswomen. Making exceptions to the behavior of current employees creates a toxic environment in the bus using the well-known analogy Jim Collin.
For example, the new owner of the dealership or the General Manager needs to sell more cars. They have a proven sales process in place. The new car dealer with a proven track record to work. It does not have to follow a training car sales for the sales process, and therefore do not have to follow the sales process. This exception is good for the company, as it sold 6 cars in a week, but it's bad for the rest of the sales team, which is always loaded with the current sales process, but ineffective.
Another example except that I have often observed and actually heard that a certain behavior support staff, and the new car salesmen or new car saleswomen behavior is constantly being questioned. If the goal is to sell more units, so why not everyone works together coherently and consistently for that purpose?
He is the director of finance manager active service throughout the sales process? They do everything to support the efforts of the new car sales? Or their behavior caused lost sales, and you make an exception for these behaviors?
A recent example, when a new car was promised to deliver a brand new client dinner. New car dealer took care of everything, to notify all relevant parties, including the CFO and management services.
Unfortunately, the CFO believes that his dinner was more important to ensure that any new customers happy. This delayed service manager and, therefore, promised delivery the customer has not been made. Will you be satisfied that this is a new brand of customers? I do not think that.
The owner of a new car dealership observed such behavior. He reprimanded the director of finance, but the perception of an exception was made because even if someone else so completely ignore the customer, they would be fired or at least suspended.
Business performance management is not sustainable exclusion. In fact, except for creating the culture of discontent. So, if you are a new owner or the general manager of the dealership showroom, you may need to look at their own behavior, before looking at the behavior of your new car salesman or a new car saleswomen.
Most car dealers train their salespeople in the "sales system", which is intended to lead you - the customer - through the sales process in such a way ,. This is something that you do not even realize that you are manipulated and directed to the bottom of the "Yellow Brick Road " on sale!
Their team of professionals - including a manufacturer, a sales manager, CFO, used car manager and often the manager of sex, which is "closer" to work for you, using the sales system designed by professionals, where they are well-trained and rehearsed.
You are not only against the car salesman! When entering the work well, professionally organized dealer, you are up against a team of professionals who are going through their actions a few times a day!
Their goal is to get you to take the right emotional buying decision on the spot.
Understand that every move they make is calculated and deliberate. They have all the angles covered, and they will come to you with every trick in its arsenal.
The good news is that you can turn the tables on them. Here are some tips to remember:
Always looking for a car or truck that you are interested in before you set foot on the car lot. You can easily do this online. Not only can you get free quotes, but you can search the invoice price, models, equipment and so on.
When it comes time to negotiate the price of a car does not negotiate payment. Always agree on the selling price of the vehicle.
Do not tell them you have a trade, you have agreed to a fixed price sale. Then agree on a purchase price alone.
Arrange your own financing in advance, if possible. If you leave the dealer financing arrangements for you, it will cost you dearly.
And remember, please. , There is no reason to cancel three days when buying or renting a car! After you buy a car, it's yours!
The idea is to be prepared when you go to the auto show, so you do not fall into their trap of "sales" you can get all the information you need to beat the car dealers at their own game,
Another point, just to be fair; Not all car dealers to adhere to a strict system of sales. Some give her a bit more latitude to manage the sellers customers. However, even if the dealership is not organized, experienced seller knows that if you leave without buying the car, he can not see you again.
The reality is that the customer will go from dealership to car dealer until they are faced with a supplier who will take control of the sales process and sell the car.
When I was selling cars, there were many times when, after the sale is completed, the customer said, with a sense of bewilderment, "I had absolutely no intention of buying a car today!"
If you find yourself saying something like that after buying the car sure that you are buying a solution is the product of the sales showroom.
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