By: Terry Schwer
Almost always, the payments penciled come from the sales desk.
As I am traveling around visiting dealers, I’ve noticed that sales managers are struggling to adjust to the current climate of rising interest rates.
This puts the customer and the dealership in an awkward situation when it’s time for the deal to be finalized. Once the final deal structure is obtained from the lending institution, I see finance managers struggle to keep the payment the same as quoted.
These struggles lead to poor customer satisfaction and, in turn, lower dealer profitability.
Now is the time to conduct a rate survey and change the defaults in your desking tools to more accurately reflect the current rate climate.
This is not only a compliance best practice, but also a process that will help ensure your deals are structured in a way that ensures customer satisfaction and maximizes profitability. Consider doing this on a monthly or quarterly basis.
The easiest way to ensure these types of things do not occur in the future is for Finance Managers and Sales Managers to work together, communicate with each other, and become one team.
To go along you must get along. Engage and listen to each other and you will see your results soar.
For more information, contact Brady Ware Dealership Advisors:
Dealership Operational Consultant