Finance And Pay Plans For today's market
I hear all the time from a lot of different people in our business that the banks do not buy on relationship anymore. I disagree! I think in this new lending market that having a good relationship with lenders is even more important than before.
By good relationship I mean, keep track of portfolio, keep the loans balanced. There are programs out there that fit almost any consumer. What I see is the banks are cutting back on the back-end so a lot of managers don't want to go that extra step to get deal done because it will kill their average. Which means it hurts their income.
A F&I manager can be at $1200.00 per car but still not be getting the TOUGH deals done. Maybe dealers need to re-evaluate their Finance pay plans to not punish the finance person because he got that 480 score bought, but was capped on back-end. I know some dealers have a separate secondary department, but a lot have just 1 manager and a back up.
I personally would rather have a finance department at 700 to 800 a car but getting those 8 or 10 tough deals done every month, instead of 1200 a car and lose those deals.
What do you think?
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