If you have just opened a used car dealership, your main goal will be getting paid for the vehicles customers are interested in purchasing. When selling large ticket items, the profit made can be extinguished quickly if you make an arrangement to sell to someone who does not have the funds to keep up with their end of the exchange. Here are some ways to help ensure your customers will make the payments needed on the vehicles they purchase.
Start Before The Sale
It is extremely important to screen potential customers before agreeing to make a sale. If they try wheeling and dealing the second they meet with you, be wary. Although many will try to get a vehicle at a lesser price, someone who seems frantic and desperate may not have the funds to purchase a vehicle at all. Ask questions to find out their financial status and show them vehicles in variety of price ranges while observing their responses to the vehicles you speak about. Subtle signs may help determine which vehicle would be feasible for them to pay for rather than pushing a higher-priced vehicle their way where you may not get paid in full due to their financial shortage.
Do A Credit Check
If a customer is not able to pay for their vehicle in cash, a credit check should be done to make sure they are not holding back financial information that could make them a risky buyer. A company that specializes in credit reports for auto dealers can handle the details involved in tracking down the potential customer's records to see their payment history. Late or skipped payments and repossessions in the past would be a red flag. You may want to steer them toward a cheaper vehicle or deny them financial options through your dealership in this situation.
Introduce The Billing Department
It is a good idea to have the customer meet the employees within your billing department before they commit to signing for an auto loan. Let them know these are the people who will be able to handle any problems financially if they should arise. Often, a customer will avoid the billing department if they are unable to make a payment. This can make their situation worse. If the customer starts with a rapport with these people, they will be more apt to give them a call to make other payment arrangements if there is a roadblock in their payment plan. Let the customer know the terms of the sale regarding payments and encourage them to call the billing department immediately if there is a problem.
