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Old 02-19-2018, 11:57 AM   #16
XDCX
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Originally Posted by MSDealer View Post
According to my "self-analysis" report the non-prime incentive is one of my MOST used incentives. About 15-20% of my sales have this incentive code on the sale. We are very subprime focused and routinely hit 300-400% MSR on the Journey submarket.
Interesting - thanks for sharing your experience.

Does the fact the low FICO incentive is Retail Cash as opposed to Dealer Cash make any difference in your opinion? Could FCA have structured the low FICO incentive as Dealer Cash and achieved the same result for your customers or is it a benefit in terms of getting the deal funded to show the incentive as Retail Cash?
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Old 03-21-2018, 10:30 AM   #17
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The lenders know that rebates aren't real cash -- but they choose to ignore that. It definitely makes a difference.
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Old 03-27-2018, 08:46 AM   #18
conn02
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I believe that the take rate on the low FICO incentive would take off, if it were moved to dealer cash. The dealer would be able to make more deals (mostly dealing with negative equity on trades) and would better manage the structure of the deal
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Old 03-27-2018, 09:28 AM   #19
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I believe that the take rate on the low FICO incentive would take off, if it were moved to dealer cash. The dealer would be able to make more deals (mostly dealing with negative equity on trades) and would better manage the structure of the deal
You are exactly right. The problem is the manufacturer does not trust you! They are convinced that you will just keep the dealer cash for yourself and not use it to make deals.
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Old 04-02-2018, 08:19 PM   #20
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Originally Posted by MSDealer View Post
The lenders know that rebates aren't real cash -- but they choose to ignore that. It definitely makes a difference.
Chrysler Capital has generally scored true cash/equity down and rebates a little bit differently over the years but in March that changed, so now rebates are handled 100% like cash/equity, even in Chrysler Capital land. They've definitely been pushing for more looks and paper, new and used alike, so I guess they are going to try some different things.
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Old 04-03-2018, 04:44 AM   #21
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https://www.revzilla.com/common-trea...t-032918-|tpfn

Interesting article on how Harley finances their bikes. Read to the end of the article.
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