Tag Archives: financing

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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FTC to Dealers: “Pay Us a Penalty No Matter How Much You Owe”

You’ve seen (and maybe even used) ads claiming that a dealer will pay off customers’ trades no matter how much they owe. The Federal Trade Commission has announced consent agreements with five auto dealers who ran variations of those ads.  The FTC charged that they deceived consumers into thinking they would no longer be responsible […]

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Bank Fees: They’re Not Just for Consumers Anymore

There has been a great deal of publicity concerning fees that financial institutions have sought to impose as a result of new laws such as the Dodd Frank financial reform legislation. Sometimes, the fees have received massive publicity like the debit card fees from which Bank of America had to retreat. Unfortunately, many other fees […]

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