Are dealers still in a finance pinch? Do clients need payday loans in the F&I office??

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Permalink Reply by Suzanne Brief on November 3, 2009 at 8:24am

We could probably use something like this. Right now we do hold check agreements, sometimes for 2-3 weeks, interest free. The customers like it, but it is impractical in some situations. With the sub prime market still very tight on advances, we sometimes pass on deals that make, lets say $900- 1500 total simply because it does not make sense to hold a check that can be as much as half the gross. If the customer defaults on the check, we are left with very little in the deal. I am wondering though, when the bank does the interview how can we be sure the customer does not violate the loan terms by telling the interviewer that the down payment is on a short term note. That would be a concern for me. We actually had to unwind a deal a few weeks ago when the customer told the bankthat we agreed to hold the down payment check for 2 weeks. What are everyone's thoughts on that aspect of this?
Sue Brief
E-Commerce Director
Dallas Dodge

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