This week our dealership decided to change its philosphy on selling cars. The changes will take place slowly over the next few weeks and carry over thru the first part of February 2008. The idea is to find more cars under $10,000 and finance more of them thru our in house lenders. The powers that be have decided to concentrate on less sophisticated car shoppers who are looking to buy a payment and not a car.
We were given assurance that we can now guarantee anyone approval on buying a car if we use a certain finance company. The way that it works is we do all the qualifying work that we normally do for a customer but without deciding on a particular vehicle. The customer may have found a car but it is up to us to make sure they understand the restrictions of their finances, whether true or contrived.
The finance company will take all this into consideration and tell us how much to charge the customer for the price of the car. It will fit their payment and down payment guidelines and then put them in a certain car that provides a particular profit for the finance company and for the dealership. The total profit on a $10,000 car is expected to be in the range of $3,500 to $5,000 per vehicle.
People this is happening all over. Follow the earlier advice, email me with questions, leave comments about your horror stories and help me get control of this problem.
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