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I am a finance manager at a volume import dealer.... AMA

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I am a finance manager at a volume import dealer.... AMA

Cool forum. I am a finance manager at a 500 car a month volume import dealer in south Florida... happy to send proof to any mods... Ask me anything.

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Super Contributor

Re: I am a finance manager at a volume import dealer.... AMA

What’s the markup on the extended warranty? Which variant of fico does your dealership use? What’s the average percentage in markup you do for contribution? I think that’s what it’s called, your commission.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

    




Updated June 2020, unless otherwise noted. I took an HP on EX, will reflect on next update.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 2 of 46
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Frequent Contributor

Re: I am a finance manager at a volume import dealer.... AMA

All myths aside, what days of the week and/or times of the year are the best to try get a good deal. As someone, in the market for a luxury import after my refinance, this could be very useful 😁


Thinking out loud: Garden till Dec '17.
Message 3 of 46
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Frequent Contributor

Re: I am a finance manager at a volume import dealer.... AMA

Curious about mother in law getting approved for a lease.

She has no debt and very good credit.  I believe it should be over 760 for all FICO scores.

She has leased in the past with a co-signer.

 

This time we want her to lease on her own.

 

What has changed is she sold her house and lives with us and has 0 monthly payments except the car.

 

Her income is very limited maybe $1,200 a month.

 

Do you think she would likely get approved for a $400/month lease without a cosignor?

 

Thanks so much!

 

 

Message 4 of 46
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Re: I am a finance manager at a volume import dealer.... AMA

With the current Covid market are you negotiating much on your used cars? If any.

 

I've been shopping for a 2017 C-300 coupe, 25k miles in Florida, most are listed at $30k. KBB trade in Value is ~25k what price should I aim for? 

Message 5 of 46
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Re: I am a finance manager at a volume import dealer.... AMA


@Birdman7 wrote:
What’s the markup on the extended warranty? Which variant of fico does your dealership use? What’s the average percentage in markup you do for contribution? I think that’s what it’s called, your commission.

Our warranties have between 800 and 1500 in profit. We pull fico8 all 3 bureaus. Markup is limited by lending source. Usually between 0 and 2 points.  A lot of banks are moving towards paying higher flat fees to the dealership based on the contract amount instead of allowing participation- markup.

Message 6 of 46
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Re: I am a finance manager at a volume import dealer.... AMA


@gardeningTate wrote:

All myths aside, what days of the week and/or times of the year are the best to try get a good deal. As someone, in the market for a luxury import after my refinance, this could be very useful 😁

 

 

Complete crap shoot. While people will say whatever day the urban myth is it is really a function of inventory levels. More inventory is more manufacture support which is more discount. Every deal has to stand on its own merit, businesses don't just decide to lose money cause it is the last day of the year. Price 3 dealers to keep them honest and go from there.


 

Message 7 of 46
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Re: I am a finance manager at a volume import dealer.... AMA


@njcobra10tha wrote:

Curious about mother in law getting approved for a lease.

She has no debt and very good credit.  I believe it should be over 760 for all FICO scores.

She has leased in the past with a co-signer.

 

This time we want her to lease on her own.

 

What has changed is she sold her house and lives with us and has 0 monthly payments except the car.

 

Her income is very limited maybe $1,200 a month.

 

Do you think she would likely get approved for a $400/month lease without a cosignor?

 

Thanks so much!

 

She doesn't qualify for a 400 payment making 1200 a month. Every bank is going to assume for some type of housing expense even if the customer puts 0. If she is living off investments as well that is income.

 

 


 

Message 8 of 46
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Re: I am a finance manager at a volume import dealer.... AMA


@Tampa89M wrote:

With the current Covid market are you negotiating much on your used cars? If any.

 

I've been shopping for a 2017 C-300 coupe, 25k miles in Florida, most are listed at $30k. KBB trade in Value is ~25k what price should I aim for? 

We are very firm in our pricing at the minute. Inventory is tough to get and we are paying top dollar as well. As new car inventory improves expect the used car bubble to burst a little. KBB is a consumer facing guide not something used by dealers. I would push the car purchase out another month if you can when it is not such a sellers market.

Message 9 of 46
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Frequent Contributor

Re: I am a finance manager at a volume import dealer.... AMA

Thanks for the info.

No investment income so we will have to co--sign.

Message 10 of 46
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