10 Ways the Auto Summary from Trans Union will help you sell more cars at higher grosses.

1. Know if the prospect will likely have a trade in before you pencil the deal every time – do your salespeople always get the qualifying information your managers need to properly work a deal every time when it comes to the prospects trade in?  Auto Summary will!!

2. Prospects APR on Trade In is high, and so is the CB score – hold front end gross with the payment buyer

• Hold Gross by showing what the payment would be for vehicle he is buying using his old interest rate and show the saving with the lower rate you are offering today, and take the focus off lowering the payment.  Rolling back the payment to $350 would force you to lower the price by almost $3,000 destroying your gross and giving the salesman another mini!  

Ex:  Customer buying new vehicle and financing $24,000 for 72 months at 5.9%, payment is $397, at his old rate of 9.5% payment would be $439, a difference of $42 per month or a total savings of $3,024 by being able to offer this customer a lower interest rate than last time he bought a car!!

Word Track:   “Bob, I appreciate the fact that you don’t want to go over $350 per month on your payments, but you really need to take advantage of the current low interest rates while they last and get the vehicle your really want.  If we had to use the 9.5% you had on your last loan the payments would be $439 per month, you are saving over $3,000 today by financing this vehicle at 5.9% instead of 9.5%.  Bob lock in this low rate today and get more vehicle for less money! Can I see your license and let’s write this up!

3. Prospects APR on Trade In is high, and so is the CB score – hold front end gross with the price buyer

• Shift the focus from Price and his desired discount to showing the savings on the interest and subtracting that from your sale price and show how your price minus the interest savings is actually less than his offer

Ex:  Your sale price is $24,000 and your customer is offering you $22,000. 
        Subtracting the interest savings of $3,024 from your sale price of
        $24,000 results in $20,976, over $1,000 less than their offer!! 

Word Track:   “Bob, I appreciate the fact that you don’t want to spend over $22,000 but you really need to take advantage of the current low interest rates while they last and get the vehicle your really want.  If we had to use the 9.5% you had on your last loan the payments would be $439 per month instead of the $397 you will be paying at 5.9%, you are saving over $3,024 today by financing this vehicle at 5.9% instead of 9.5%.  Bob, if you factor the interest savings by taking action today and locking in this low rate you’re at a difference figure of only $20,976.  Let take action and write this up right now, (extend your right hand to shake!)
 

4.  Prospects APR on Trade In is high, and so is the CB score – hold front end gross  with the price buyer

• Hold Gross by showing what the payment would be for the vehicle he is buying using his old interest rate and show the savings with the lower rate you are offering today, and take the focus off giving him more for his trade and ruining your gross profit.  

Ex: Customer is demanding $2,000 more for his trade or he is walking!!   Word Track: “Bob, I understand you feel your trade in is worth another $2,000, and I would love to give it to you, but I can assure you my used car manager is giving you top dollar.  You are saving $3,024 by us being able to finance your new truck at 5.9% instead of the 9.5% you are paying on your current loan!  Add that savings to what we are giving you for your truck and you are ahead by over $1,000 by taking action now and locking in these low rates before they go up!”

5. Prospects APR on Trade In is high, and so is the CB score – Maximize back end gross with the payment buyer.

• Show the customer how he can afford the warranty, gap, etc by and what a value it is by financing it at 5.9% instead of his old rate of 9.5%

                  Ex:  F & I manager could sell up to $3,000 in back end products by showing
                          How the payment would be the same if he was financing at the old rate
                          But now he can get all the extra value and protection of ……..!!!!

6. Prospects APR on Trade in is high, his CB score is low, multiple times late in last 24 mths, and trade was financed by a subprime lender – Customer is still subprime and needs to be worked as such!

• Rather or not this prospect is turned over to a special finance manager or worked by the tower, a subprime deal needs additional, and strong qualifying early in the process, stressing the need for a large down payment ( don’t’ forget IRS anticipation refund loan this time of year!!  We have an amazing mailer you should look at now!!), an additional trade in (no matter what it’s worth), cosigner.

Work this deal backwards!  Find out what he customer is able to buy and get qualified for by using the special finance search capabilities of ProMax, then select the top 3 grossing vehicles and let him select which one they would like to buy TODAY!  You’re not going to run a quick CB and blow off this customer – just the opposite.  With the right information up-front, you are working this prospect smarter and getting more sales!
   

7. Prospects APR on Trade in is low and his CB score is high

• Customer is probably very proud of his credit and knowledgable about current interest rates (did his home work!) and also paranoid about car dealers.  Be aggressive with an initial low and competitive interest rate, or lease payment and be prepared to justify it.  A high initial rate or lease payment could upset this prospect, lose all credibility for your dealership and be hard to win them back!

8. Prospects APR on Trade in is low and his CB score is low

• Customer had good credit to get low rate, but now is subprime and needs to be worked as such.  However show compassion and ask gently what happened to cause his credit to deteriorate.  You can then justify why he needs to rebuild his credit with a vehicle that he can get approved on, and once his credit is back to where it was, come back in and get his dream vehicle at a lower rate.

9.   Auto Summary instantly tells you if there was a cosigner on their last loan

• Odds are if they were able to get a cosigner on their last loan they will be able to get one on new one, and may very well need one if subprime

10. Auto Summary instantly tells you available revolving credit for this prospect!

• Down payment is the prime reason you can’t get more subprime deals bought – need I say more!
• If customer is a payment buyer with good credit, then analyze their credit bureau and see if there are any high payment items with low balances and suggest they use their credit line to pay of this loan and increase their cash flow to pay for the vehicle they really want – without you lowering gross!!