fmc_smt
Well-Known Member
- Joined
- Jun 4, 2018
- Threads
- 38
- Messages
- 1,234
- Reaction score
- 2,268
- Location
- Cottonwood , Arizona
- Vehicle(s)
- 2015 gt , 2015 Escape , 2015 F250
- Vehicle Showcase
- 1
You my friend, not , are selling a payment. How hard you try to sell it just screwing someone over . Example, did I go for the 60 or 72 month payment to save a few bucks or the shorter term ? Shorter term higher payment , less total purchase price . Stop trying to sell people on a payment, and open there eyes to the whole picture. Then again just saying .nope, not really... let me explain it slowly because i see this on a daily basis...
customer 1, needs a car... just need transportation from A to B. came to lot looking for something. Credit is not great but it's not bad either... they look a few options, say this is my 1st option... i have this much money down, want payments, around this much....
no problem, sales person do the app, and i start working the banks... maybe the car is a 2013 BMW for like $10k + taxes and fees to say something.
banks offer a 48 months due to year/mileage, at 15% APR and $590 fee. They like the customer, but don't like the car (car makes and models are graded by the bank, the higher the grade, the better deal they offer.... BMW is a D, while lexus/toyota are A+)
lets say payments are $350, customer is trying to be at no more than $300, what to do? more money down... customer doesn't have more down payment? next option? another car... sometimes, the cheaper car doesn't mean the lowest payment....
So... next option? a different car with better rates... hey customer 1, we have this nice 2017 honda accord, fully loaded, low miles, yes, it's $14995 + T&F but do you like it? if you do, the bank is offering better terms, we can get you better numbers! (capital one basically show you in their system what cars will work better for that customer)... yes, i like that accord.... ok, bank is saying 72 mo, at 8.9% APR and you don't need more money down, you payment is $289/mo
done, customer got the payment they wanted, with the down payment they wanted on a different car that wasn't their first option. (apparently that's being a crook i guess lol)
Customer 2. I have my own check from my local credit union, i want this specific car. ok, car is this much out the door. done
Customer 3, i want this car in particular and i don't want any other car, i need financing... well, that will depends only on his credit... shitty credit = high APR and higher down payment. Good credit = lower apr and lower down payments. Will only depends on customer income, can't get a $50k car if you make $2500/mo because your DTI is too high, unless you put a lot of money down where your payment fits your DTI. No secret sauce or scamming, or anything.
with customers with BAD credit, its not about what they want, its about what they can get, period. 2 previous repos, 430 credit score, but you want that nice mercedes, well, good luck getting a bank willing to finance that. And if they do, be ready for a 25-27% apr. Your credit is basically your payment history, if you don't pay anybody, don't expect the lenders to treat you like a good paying customer and give you a nice good lower APR... you are high risk, high risk = retarded APR
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