Ten Quick Tips To Save On Financing & Leasing:

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Tips 1 - 3  

1. Who is the "Business Manager" (BM) and what does his job entail?

Once you have agreed to purchase a vehicle, the Business Mgr is the person in the dealership who arranges financing for your purchase. The BM is the direct liaison between you and the lender. His or her job is supposed to be to obtain the lowest finance rates possible (for you, based on your credit rating). The BM will also offer you additional products you may or may not be interested in, and will discuss how they may be able to incorporate the products into your financing.

 

2. Why is it important to understand how a BM is compensated?

The BM is compensated by the dealer. This is important to know because it is directly related to his or her "performance" in the business office. They are usually paid a stipend salary weekly PLUS a percentage from the profit on items sold.

All ancillary products such as life or disability insurance, extended warranties, gap protection, alarm systems, paint protection, etc. (you get the picture), all have a dealer cost. The BM tries to sell these products to you and, depending on the profit mark-up on each item, he or she gets paid a percentage of what they "sell" you.

For example, the dealer's cost of an extended warranty for your vehicle might be $850 but you were charged $1495. Depending on each dealer's individual pay plan for a BM, that person could have made anywhere from 15% - 25% of that $645 profit. Now that was just the warranty - what happens if you bought the "menu package"? We'll get into more detail later on. But - Do THE MATH..

As a Member of AutoXcite we'll help you assess what you need, and what you should pay for it

 

3. What is a "FICO" score and how does it affect what I pay per month for my vehicle?

A FICO score is your credit score. This score is what lenders use to determine whether you qualify for a loan and what your interest rate will be. The higher the FICO score, the lower the rate, and visa versa. Always remember, lower rate = lower payment. Let the professionals at AUTOXCITE.COM show you how to know what your credit score is before you even walk into a dealership.

AutoXcite members receive helpful information on monitoring and understanding their credit scores.

 

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