F&I Business Office Management and Sales ProcessTraining
The managers in the business office have three main functions that we consult and train on. They are; Gatekeeper, to provide legal security in the paperwork and provide delivery of the funds due without held offerings; Delivery arrangements between the service department, financial institutions and salesman, while ensuring CSI; Offer products and services to customers to enhance the purchase experience for the dealer and the customer.
Cash Conversion Scripts
You may find it advantageous to finance your car, let me give you the information, so that you can make a good decision.
Many car buyers prefer taking out loans to paying cash for any of the following reasons:
You may need your cash for other purposes, such as paying for other products or services, maintaining a better cash flow, or building a cash cushion; for such things as emergencies or college tuition. These are also good reasons to avoid using your line of credit.
The interest rate, payment and term are locked in to the bank for the full term and open to you to change or prepay. You know what your payments and total cost will be for the full term.
The reason banks like the line of credit are that people tend to make payments and then add further debt, never really reducing the principal.
Line of credit is a 30 day demand note, which means the bank can “demand” payment in full at any time or raise the rates at their option, or ask for further collateral like your house.
When the debt ratio goes up, (like increasing the amount borrowed) the bank can raise the “over prime” interest rate due to the higher risk, which negates the advantage you thought you had.
Line of credit is a floating interest rate, which means as prime goes up, so does your interest cost and possibly your payment.
Typical payments can be much higher than what a loan payment will be. If you take a fixed rate loan and make additional payments it will reduce the term and cost of borrowing, but it will never go up like a line of credit.
Interest rates are calculated annually to give us an APR or annual percentage rate. On a fixed rate Car Loan the interest is calculated on a declining balance, therefore the actual interest charged is roughly half the posted rate. On a line of credit, the interest rate is calculated on what you owe each day and is therefore the actual rate. In reality the rates are similar, even though they are stated to be lower for a line of credit.
Can I show you what the payment will be on my best rate? A rejection here is still OK because now you have earned their trust to show them more products to consider. They must have the “right to choose”.
If they say yes: Note to self: Now I am going show them rates Platinum, Gold, and Silver, on variable and fixed rates, giving them a chance to reject one.
Stating that both have fixed payments, one is lowered due to its variable rate and will be settled at the end of the term.
Book a complimentary presentation today.
Call Andrew at 519-757-7486