Oh, what a difference a few years make. In late 2008, many auto pundits lamented that we might never again see sixteen million annual new vehicle sales. Proving that their memories are as faulty as their predictions, in 2012 they told us that, just like they always expected, sixteen million annual sales are on the […]
Car people speak in their own shorthand that is not always precise. For example, a franchisor is the “factory”, even though the franchisor may simply be a distributor that does not manufacture anything. Or an extended service contract is often referred to as an “extended warranty”, even though it is not a warranty at all […]
The Office of the New Mexico Attorney General recently adopted new spot-delivery regulations. The regulations took effect June 1 and impose a wide-range of dealer requirements related to spot-delivery practices. The actual regulations can be downloaded using the following link. New Mexico Spot Delivery Regulations (12.2.13).
There has been a substantial amount of publicity recently concerning backdating retail installment sale contracts. The practice can lead to serious problems. The problem can arise when a dealership spot delivers a vehicle to a customer who signs a retail installment sale contract that is not approved by a potential assignee on its terms. The […]
In July of last year, a California appellate court handed down a very nasty, published decision that makes backdating retail installment sale contracts even riskier now than it was before. I have been advising dealers not to backdate contracts for many years. However, what triggered a wave of suits in California and other states is a 2002 […]
In a recent story, Automotive News reported on an informal online survey of F&I managers in which 29% responded that salespeople or sales managers fill in credit applications for customers at their stores. They’re just trying to help the customers fill them out the right way. What could go wrong? Plenty. What happens if a […]
Dealers generally assume that a customer who leases a vehicle will have the right to buy it at the end for the residual value. That is not always the case. Pricing for a lease is generally based on three pieces: the residual which is the unamortized portion of the lease at which the lessor will […]