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Old 03-03-2008, 08:49 AM   #9
Join Date: Nov 2007
Posts: 14,869

Originally Posted by Bubba Louie View Post
I can't count the # of customers I have "CONVERTED" to 72 month financing from 75, 78, 84 or 96 month terms when they come back to our offices. The largest problem I have seen is the "greed" factor. Payment closes as we all know are essentially payment packing, but in our area to avoid that they send deals that have 145-205% front ends, with extended terms and low rates. But with Bayview as an example, you can't get carry, term and rate on ANY customer. The managers see 780 Beacon...automatically 6.95 on 158% carry @ 96 months. Easy deal. In corporate stores on the management side we are held accountable for the grosses, and they are driving the terms through the roof. And then to supplement the car count, we have the $2000/185000 mile whoopties they "retail" to small car dealers to pad their year over year more car than last year to reach their bonus levels you know. The only dept in the dealership that this nonsense costs is F&I. Get some of that!
I imagine that what you describe happens in most stores - extending term to build gross.

I smiled when I read about retailing the "whoopties" a wholesaler to meet a unit bonus - that game has been played for generations.

Concerning term, sooner or later the insanity has to come to an end - how long can you stretch a payment on a depreciating asset?
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