Dealership Finance Managers HATE when you know these 6 things! #finance #carbuying #carfinance

Hi everyone, I'm Kimberly and welcome to Auto Finance Sense, where I hope you understand the

dealership

finance

office the next time you buy a car. Let's start today. I'm going to let you in on a little secret of six

things

a

finance

manager

hate

s hearing you say: Are you ready number one? I'm paying cash, so why does the finance manager rub his temples every time he hears those dreaded words? I'm paying cash, well it's pretty simple, most finance

managers

do most of their efforts. Money from financial deals first generates reserve income, also

know

n as yield spread, which is the difference between the buying rate and the selling rate, but the most important reason is that the opportunity to present and sell to you is lost.

Additional optional products on payment terms. Many people see the benefits included in the pay as much more digestible, but that is a big advantage for the finance manager now. More than a few people have told me, well, Kimberly, I always pay cash for my cars, so why is the finance manager fighting? It is very difficult to want to finance myself even if it is 0%. Well, that's why your cash deal turns into a payment presentation and that's also why I teach you that if you go to finance with a dealer and you don't see the real money. price of the products on the menu, then you ask the finance manager to write that price next to each profit shown, it is the average shopper who buys without all the numbers being completely transparent and that is not you, there is also a psychology at play here, so for example in cash deals, some finance

managers

will set the prices of each product so that the final payments at the bottom of each menu column show a round figure.

Our brain finds that even round number much easier than an odd number with Some changes, therefore making it easier to write a check number two. The finance manager

hate

s it every time you say, "Let me call a friend." Let's say you're looking over the menu and there are a couple of items that interest you a little. a little bit and then you say well let me call my spouse on the phone, you

know

he or she knows more about this than me or my friend is very good with this stuff so let me call him or her real quick and see what I have to say right, Unless the person on the other end of that phone has had a positive experience with one of these products, which will usually be loud, no, don't buy any of it and sometimes that person won't know what to buy. say and feel a little bit on the spot and then hand the phone to someone else now, obviously, this is going to frustrate the finance manager.

They lost a sale to someone to whom they couldn't explain the benefits or how. These

things

work, however, here's what I wouldn't want you, the buyer, to hand over your decision-making power, your knowledge, your control to someone because you feel like you don't know what you're doing if you feel the need. To call a friend, you would put that person on speaker so you, your friend, the finance manager, can discuss and be transparent. This puts the finance manager in a bind in case he doesn't have a second set of ears physically sitting next to him. You all the time, for example, you may find yourself in a position where Gap coverage could be very beneficial to you.

I would like you to know the questions you should ask about Gap and negotiate the price. Watch my video about Gap. The link is in the description box under number three Finance hates to hear that I'm making a big down payment. You see, the more you finance, the more money the finance manager makes. Now some banks will have a minimum amount to finance and that might be $10,000 but if the finance manager is, say, increasing the purchase rate from 6% to 7%, then the financed amount of $20,000 will make them more money than the financed amount of $110,000 now if it is a subsidized loan like a 2.9 from the manufacturer and no markup. can be done, then the finance manager will receive a payment called something fixed and that could be between $100 and $300 approximately, but some lenders make that fixed payment according to the amount financed and again, $110,000 will pay less than $20,000, so every lender is different a $40,000 72 month financial loan with a high purchase rate pays much more than a $10,000 36 month loan at the number four purchase rate, the financial manager hates to hear that already I'm approved at my credit union for x amount interest rate and x amount term now approved means you've already gone through the application process at your credit union and have a solid approval in your hands or in your email on your phone, no that is pre-qualified or pre-qualified. approved because finance managers can be quite successful in overcoming that objection.

Watch my previous video where I reviewed prequalification and pre-approvals. Having a strong approval usually comes along with you, the buyer saying something like: I know my credit well. Stay on top of it, so now most financial managers will work hard to try to convert you from their credit union to their financing by offering to match or beat your rate and term and also letting them know that you know your credit well. I've made it pretty clear to them that you are a smart buyer who controls your finances, but if you don't allow the financial manager the opportunity to try to beat your credit union, then to them it's just a cash deal, okay, number five .

The finance manager hates

when

you say I think I'll take my time and call other manufacturer

dealership

s and ask the finance manager what the prices are for some products because I know they all have them too, so the service contracts from tires, wheels, vehicles, paint, interior dents. Whatever the product, with the exception of Gap, you can always take your time to think about it, do your research, and compare prices now. The finance manager may try to overcome this objection by saying, "Well, you know you're going to have to pay for those." products off your loan and you'll probably have to put them on a credit card, but you know, again, you're not the average shopper here, once you know the right questions to ask about each product, which are in my other product videos, then You can call four or five other manufacturer dealerships in your area or in your state.

Tell the receptionist you want to purchase an extended warranty. That way you will communicate directly with the finance manager because they don't like to take phone calls frequently and let them know what you have prepared with your VIN and how many miles your car currently has on it and just say, by the way, I'm calling four other manufacturers dealerships so give me your best price. My point here is that if there is something that you feel fits your life and driving habits and that protection makes sense for you, then this is a good way to open the door to negotiating a much better and fair price. at that very moment.

Remember the financial manager needs you for their payment plan and they want to do business with you, you've heard me say this before in my other videos that with the exception of the forced front ads like steals and Nitro products in the financial office of a dealership manufactured, they are not bad products, it just depends on the finance manager as to how much those products mark up and that is too high number six, the finance manager hates

when

you come in or call and say I want to cancel those products that I bought, you bought your car about 30 days ago or So, and maybe the finance manager convinced you to buy some products that you didn't research first and then you come home and realize that all of these products add up to over $4,000 on your loan, so he comes back and says I changed my mind.

I don't want all this on my loan. I want to cancel them, so why does the finance manager hate when you say this? Because if you cancel your products within a certain period of time like 60 or 90 days, the money he or she earned on those products is taken directly from the golden pot of financial money that they are paid with and that is now called refund charge, depending on when you cancel these products, the financial manager could keep that cancellation. Until next month, keep in mind that when you pay off products included in your loan, that amount of money will be deducted from the principal amount of your loan, so you will owe much less, but your payment will remain the same in the loan agreement.

It's not rewritten, so be sure to read the cancellation clause in your specific product contract as a side note when a financial manager tells you there's no prepayment penalty on your loan but you can't refinance or pay it off for 90 days or six months or however long they give you then it is very important that you say OK circle where it says that for me or that you highlight it in the bank agreement so I can see it clearly unless there is a specific document here between you and the dealership with Regarding this when a lender doesn't have a prepayment penalty and most don't, but you always ask, that means you can put additional money into the principal at any time or pay off that loan in full any time you want it to. the finance manager simply wants to.

You must hold that loan for a certain period of time so that you are not affected by that chargeback. Chargebacks not only come from product cancellations, but they also come from the money made between the buying rate and the selling rate. rate also known as reserve or yield margin, so there you have it, there are six things a financial manager hates to hear at the dealership if you feel like you've gained some kind of insight from this video, would you mind hitting the approve button, subscribe and notification bell to notify you every time I upload new videos thank you very much and see you soon goodbye