4 Dirty Little Secrets At The Car Dealership | Former Finance Manager

all right Miss Kimberly Klein it is just you and I today and so you are a very gracious co-host you told me that you would share three potentially four dirty little secrets I I just I I can't wait three to four dirty little secrets about what what were those secrets about I mean who doesn't want dirty little secrets and I will say these are down and dirty little secrets from the finance office at the dealership so are you ready Zach um my seat belt is buckled because I am a safe driver especially when it gets down and dirty all right now the first down and dirty little secret of the finance office that I'm going to tell you is being friends with and name dropping never works in the finance office as a matter of fact it's going to go very much against you so when you walk into the finance office and you say things like this me and the the the sales person we've been friends forever we went to school together the guy the uh the the back in service the service manager we've been best friends forever don't ever say that to the to the finance manager do you know why Zach no this one actually is kind of catching me off guard I thought all that stuff would be good to say but it's bad all right let me hear why that gives the finance manager the license to make the most money so if you walk into a finance manager office and you tell the finance major those things that I just said I'm friends with this person that person dealership as a consumer you're thinking therefore I will get the best price on things or you will take good care of me when in reality to a finance manager that simply means I'm gonna make a lot of Bank on this why is that why I why wouldn't it work because Common Sense would be like well Kimberly's friendly with Rey raise the sales manager I know Ray Ray took care of me Kimberly will take care of it why is it the opposite because of what you just said reverse psychology gotcha so I think I'm getting I think I'm getting a good deal when in reality you're you just know that I'm gonna probably say yes I'm a flop in that case I get it there are several names for you in that case Zach so a flop is one of them but yeah you're you're in very very enticing whenever you come in and you begin to name drop because you think it's protecting you in some way in the finance office when indeed I'm gonna make the most money off of you because of it so just don't do it that's how you counteract it don't name drop be friends with no one at the dealership even if you really are don't let the finance manager know okay honest honest words from Miss Kimberly Klein be friends with no one when you go to the party collection it's so true thinking about getting auto insurance compare quotes from all the major carriers in one place join yaa.com insurance it's quick easy and no spam all right what's number two on the list of the three potentially four down and dirty secrets of the finance office down to Dirty Secrets finance office and uh the finance major says now you need to make payments on this for the next three months 60 days 90 days whatever that may be uh that's a lie if there's no prepayment penalty there's no prepayment penalty so that's a dirty little secret to protect the finance manager and the finance department from getting a charge back in case you pay it off early all that money that the finance manager made on you well that comes right out of their we're going to call it the pay pot okay their monthly pay pot that comes back out it's called a chargeback and every dealership has those chargebacks so if you ever hear that you know the secret now as to why a finance manager might tell you that and all you have to do is say show me where it says that show me on the contract and that's the key point to me please Mr or Miss finance major on the contract where it tells me that I can't pay it off ASAP as far as I know and you keep me honest here Kimberly there's no loan contract out there that says You must pay this loan out over its original like unless there's a prepayment penalty which is a thing that exists but honestly less and less these days at least that I see you can pay off the loan whenever you want the charge back is the thing that the finance manager is going to be protecting against you got it that's the little secret um another the third maybe the final I don't know dirty little secret is that when you sit down in the finance department and you all know you've heard us talk about the menu process now the menu is not something required by a dealership um but what is required is what's called a pre-contract disclosure and that's something that show shows you your payment with and or without products it must be but typically it's a menu because it gives the finance manager the option to sell as soon as you sit down in that chair if you don't see pricing beside each product on that menu already if it didn't print out that way the first thing out of your mouth should be write down the prices on every single one of these products period end of story why because the Dirty Little Secret is you're not looking at the screen the finance manager is looking at the screen and so the finance manager puts in these prices and do remember people it is a hundred percent up to the finance manager as to how much they mark up those products yep that is key so if you walk into the finance office the finance manager has got those products marked up so high why because any good negotiator knows you start high and you come down from there so that cannot be hidden however if you know right up front what those items cost and you've heard me say look for your base payment first yes you want to look for your base payment but the point is the sooner you tell the finance manager to write down the actual price you've just backed them into a corner they can't go anywhere I've seen more and more of this happening online because a lot of car dealer websites nowadays you can kind of like buy online where you go through and they tell you optional optional protection packages things like that that you can buy my Instagram DMS Kimberly are full of screenshots of those things where it's like well your monthly payment just goes up by thirty dollars and the Dirty Little Secret there is no one is thinking about what that actually cost what is the actual price of that product and you're right who sets the price for it it's not the OEM of that product they don't there's a wholesale cost to the dealer for that paint and you know leather protection package or whatever it may be but then the finance manager gets to decide what it ultimately costs so yeah that's a really good one a good reminder to ask what the price is before you just agree to buy something yeah and the sooner you do it then the sooner you've ended the not knowing now you know and you've just backed the finance manager into a corner all right so there might be one more dirty little secret that I might spill um you know you get home I don't know a couple of days later you pull out your paperwork and you see a product on there that you didn't realize that you got for whatever reason it was late whatever yep you want to cancel this product right away well don't go to the finance manager to cancel that product and the reason being is I if I'm the finance manager I want to hang on to that until I get paid on it first before I cancel anything I don't want it to be a chargeback this this month I'm going to wait until next month to cancel it that's a finance manager Dirty Little Secret we will sit on cancellations to make sure that money's in our pocket first even though you requested your cancellation so don't deal with the finance manager go directly to the accounting department that's in a video that we did for how to cancel your products as well as on our blog cancel my extendedwarranty.com redirects directly to the guide that Kimberly put together as well as email templates that you can use for the accounting department so yes this one I'm glad that you glad that you allowed us to get four secrets in because this is an important one yeah Finance managers want to get paid so if you think that they're canceling it for you that day that you request it you're you're wrong they want to make sure they're going to get paid on it and they'll sit on it so go directly to the accounting department well Kimberly thank you for sharing some of these Secrets One new one you got a new one on me I thought after doing three years of this with you there's no chance of or two years of doing this with you I thought there was no chance but no you got a new one on me that first one really threw me for a loop but as always appreciate your time you got it thanks for having me and have a great day

Channel: CarEdge

Views: 320,531

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Id: 1c4EY11egsI

Length: 9min 37sec (577 seconds)

Published: Tue Sep 20 2022