Tag Archives: finance

Lucky 13 for ‘13

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 […]

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Where Are Your Dead Deal Credit Applications?

It is now as important as ever to make sure that your dealership has an effective storage and retrieval capability for consumer credit applications that you receive in transactions that do not result in completed vehicle sales. Unless you are able to put your hands on a signed application that includes the authorization to run […]

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A Doc Fee by Any Other Name…

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 […]

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Make the Case Against Flat Fees

Have you wondered why industry publications are writing with increasing frequency about the expected demise of finance “markup”?  The answer is simple – proponents of flat fees are working to sell the concept that “markups” are evil to regulators like the federal Consumer Financial Protection Bureau and the Federal Trade Commission with the hope that […]

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Bundling? Really?

Bundling is suddenly a hot subject for F&I consultants. Bundling is the practice of packaging F&I and after sale products. This strategy may lead, overall, to more sales than á la carte offerings. But it may also generate more problems. It may be difficult for a consumer to determine the true costs and impact on […]

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Backdating is Often a Management Issue

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 […]

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