What Do Dealerships and Bank Conversions Have to Do With TikTok?

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Recently, a video by TikTok user Molly Baxter shared a shady business practice perpetrated by a few F&I managers that received thousands of views. This should get your attention! Baxter’s video should tell you exactly why customers are walking into dealerships with checks made out for the exact amount; they’re fed up with the games. 

NAMADOn this week’s episode of F&I Today, host and president of Chernek Consulting, Becky Chernek discusses how TikTok videos and other social media platforms are holding F&I managers accountable. In Baxter’s video, she describes how some less than honest or uneducated F&I managers add points to a customer’s interest rate when converting the financing to the dealership. They will tell the customer that although they have already been pre-approved by their bank, the same deal can be made through dealership financing. For most buyers, dealership financing is the ultimate in convenience because it means one less trip to the bank to finalize the transaction. But in some cases, instead of matching or beating the interest rate, the dealership actually inflates it.

Is this a practice you advocate at your dealership? If so, the question you have to ask yourself is, does it make any sense? Why would you endorse converting the customer to your financing only to charge them more than their bank would?


Did you enjoy this episode of F&I Today with Becky Chernek? Please share your thoughts, comments, or questions regarding this topic with host Jim Fitzpatrick at jfitzpatrick@cbtnews.com.

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Rebecca Chernek, founded Chernek Consulting, LLC in 2001, has nearly three decades of experience in the automobile dealership industry. She started her career by working with her father at their family-owned auto dealerships in Have De Grace, Maryland. She gained hands-on skills and experience in almost every aspect of the automotive sales process: new used cars and trucks sales, F&I, Director of Finance for volume operations and general management. She was hired in 1986 as the first woman to sell cars for Al Packer Lincoln & Mercury in Baltimore, and in 1989, she was promoted to F&I Manager for Ron Bortnick Ford in Upper Marlboro, Maryland. In 1995, Rebecca took a position with the JM&A Group and was promoted to District Manager for the AutoNation division — the #1 retailer in the United States — to hire, train boost profits and implement menu selling. She single-handedly earned a sterling reputation for adding millions of dollars to the bottom line for all her accounts! Rebecca has a well-deserved reputation as a self-starter, high-performer, and spirited entrepreneur and motivator. It’s not a matter of what you think you know… it’s a matter of proving it! As a consultant, trainer and nationally recognized expert in F&I Training and sales procedures, Rebecca has helped hundreds of automotive car dealers throughout the United States and Canada streamline their processes and closing techniques and significantly increase profits. She writes regularly for Wards Business, CBT Automotive Network, Dealer Magazine, Subprime News and as a NCM 20 Group F&I Guest Expert. She facilitates for the NCM Institute, Desking and F&I Integration. Rebecca is the anchor for F&I Today – CBT Automotive Network headquartered in Atlanta, GA. Don’t forget to check out our interactive continuing F&I online education platform Chernek Consulting Virtual Pro the best kept secrets on how to be successful in F&I! Boost your F&I performance! Every dealer must have to help your F&I manager increase sales and profits while reducing liability.

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