Finance and Insurance - The Profit Center I would like to make myself clear on a few items of interest before I get too deep into the sales processes at any dealership, including: automobile, recreational vehicles, boats, motorcycle, and even furniture or other big ticket items. A business has to turn a fair profit in order to stay in business. I believe that they should make this profit and use it to pay better quality employees a premium wage in order to serve you better. The financial strengths or weaknesses of any business can definitely have a dramatic effect on your customer service and satisfaction. I do not, in any shape or form, wish to hurt a dealerships profitability, as it is essential for his survival. I merely want to advise people how to negotiate a little better in order to make the profit center more balanced. Let's get right down to this! Every dealership has a finance and insurance department. This department is a huge profit center in any dealership. In some cases, it earns more money than the sale of the automobile itself. Profits are made from many things that most buyers do not understand. You as a consumer should understand the "flow" of the sales process to understand the profit centers that are ahead of you. Most negotiating from the consumer seems to stop after the original price is negotiated and agreed upon. Let's examine just a small portion of what leads up to that point. The first thing that every consumer should understand is that when you go to a dealership several things come into play. One of the most important things that I could point out to you is that you are dealing with a business that has been trained to get the most amount of money from you as they can. They are trained and they practice these tactics everyday, day after day, week after week, month after month, and year after year. Let me point out a couple of important facts that I have said in this paragraph. First, you'll notice that I said a dealership and not a salesman and secondly, I emphasized times of day after day, week after week, etc. etc. This was done to let you know that the salesman is working very closely with the sales managers in order to make as much money as he can. Your interests are really not their objective in most cases. One tactic that is used heavily in the business is that the salesman says he is new to the business. This may be true or not, however; keep in mind that he does not work alone. He is working with store management, who gives him advice on what to say and when to say it. These guys or gals are very well trained on how to overcome every objection that you may have to buying from them. They have been trained in the psychology of the buyer and how to tell what your "hot buttons" are. They listen to things in your conversation that you may say to one another as well as to the salesman. They are trained to tell their desk managers everything that you say and then the desk manager is trained to tell the salesman exactly what and how to answer you. A seasoned salesman does not need as much advice from his desk and may negotiate a little more with you directly without going back and forth. The process of negotiation begins the moment that you walk into the front door or step foot out of your car and begin to look at vehicles. Different stores display inventory in different ways. This is done for crowd control or more commonly known as "up control". Control is the first step in negotiating with a customer. Ever who asks the questions controls the situation. Let me give you an example: A salesman walks up to you and says "Welcome to ABC motors, my name is Joe, and what is yours?" The salesman has just asked the first question- you answer "My name is George." He then asks you what you are looking for today, or; the famous "Can I help You?" As you can see, step after step, question after question, he leads you down a path that he is trained to do. Many times a well trained salesperson will not answer your questions directly. In some cases, they only respond to questions with other questions in order to avert the loss of control. An example of this could be something like you asking the salesman if he has this same car with an automatic rather than a stick shift. Two responses could come back to you. One would be yes or no, the other could very well be something along the lines of: 'don't you know how to drive a stick shift?" In the second response the salesman gained more information from you in order to close you. Closing means to overcome every objection and give your customer no way out other than where do I sign. The art of selling truly is a science of well scripted roll playing and rehearsal. We have established that the negotiating process begins with a series of questions. These questions serve as two main elements of the sales process. First and foremost is to establish rapport and control. The more information that you are willing to share with you salesman in the first few minutes gives him a greater control of the sales process. He has gathered mental notes on our ability to purchase such as whether you have a trade in or not, if you have a down payment, how much can you afford, are you the only decision maker (is there a spouse?), how is your credit, or do you have a payoff on your trade in? These are one of many pieces of information that they collect immediately. Secondly, this information is used to begin a conversation with store management about who the salesman is with, what are they looking for, and what is their ability to purchase. Generally, a sales manager then directs the sales process from his seat in the "tower". A seat that generally overlooks the sales floor or the sales lot. He is kind of like a conductor of an orchestra, seeing all, and hearing all. I cannot describe the entire sales process with you as this varies from dealer to dealer, however; the basic principals of the sale do not vary too much. Most dealerships get started after a demo or test drive. Usually a salesman gets a sheet of paper out that is called a four square. The four square is normally used to find the customer's "hot points". The four corners of the sheet have the following items addressed, not necessarily in this order. Number one is sales price, number two is trade value, number three is down payment, and number four is monthly payments. The idea here is to reduce three out of the four items and focus on YOUR hot button. Every person settles in on something different. The idea for the salesman is to get you to focus and commit to one or two of the hot buttons without even addressing the other two or three items. When you do settle in on one of the items on the four square, the process of closing you becomes much easier. One thing to keep in mind is that all four items are usually negotiable and are usually submitted to you the first time in a manner as to maximize the profit that the dealer earns on the deal. Usually the MSRP is listed unless there is a sales price that is advertised (in may cases the vehicle is advertised, but; you are not aware). The trade value is usually first submitted to you as wholesale value. Most dealers request 25-33% down payment. Most monthly payments are inflated using maximum rate. What this all boils down to is that the price is usually always negotiable, the trade in is definitely negotiable, the down payment may be what you choose, and the monthly payment and interest rates are most certainly negotiable. If you do your homework prior to a dealership visit you can go into the negotiation process better armed. You still need to keep two things in mind through this process. The first item is that you are dealing with a sales TEAM that is usually highly skilled and money motivated. The more you pay the more they earn. The second item to remember is that you may have done your homework and think that you are getting a great deal and the dealer is still making a lot of money. The latter part of this statement goes back to the fact that it is essential for a dealer to make a "fair" profit in order to serve you better. Once your negotiations are somewhat settled, you are then taken to the business or finance department to finalize your paperwork. Keep in mind that this too is another negotiating process. In fact, the finance manager is usually one of the top trained sales associates that definitely knows all the ins and outs of maximizing the dealerships profit. It is in the finance department that many dealers actually earn more than they earned by selling the car, boat, RV, or other large ticket item to you. We will break these profit centers down for you and enlighten you as to how the process usually works. Remember that finance people are more often than not a superior skilled negotiator that is still representing the dealership. It may seem that he or she has your best interests at heart, but; they are still profit centered. The real problem with finance departments are that the average consumer has just put his or her guard down. They have just negotiated hard for what is assumed to be a good deal. They have taken this deal at full faced value and assume that all negotiations are done. The average consumer doesn't even have an understanding of finances or how the finance department functions. The average consumer nearly "lays down" for anything that the finance manager says. The interest rate is one of the largest profit centers in the finance department. For example, the dealership buys the interest rate from the bank the same way that he buys the car from the manufacturer. He may only have to pay 6% to the bank for a $25,000 loan. He can then charge you 8% for that same $25,000. The dealer is paid on the difference. If this is a five year loan that amount could very well be $2,000. So the dealer makes an additional $2,000 profit on the sale when the bank funds the loan. This is called a rate spread or "reserves". In mortgages, this is disclosed at time of closing on the HUD-1 statement as Yield Spread Premium. This may also be disclosed on the Good Faith Estimate or GFE. You can see why it becomes important to understand bank rates and financing. Many finance managers use a menu to sell aftermarket products to you. This process is very similar to the four square process that I discussed in the beginning. There are usually items like gap insurance, extended service contracts, paint and fabric guard, as well as many other after market products available from this dealer. The menu again is usually stacked up to be presented to the consumer in a way that the dealer maximizes his profitability if you take the best plan available. The presentation is usually given in a manner in which the dealer wins no matter what options are chosen. With the additional items being pitched to you at closing, your mind becomes less entrenched on the rates and terms and your focus then turns to the after market products. Each aftermarket item can very well make the dealer up to 300-400% over what he pays for these items. Gap coverage for example may cost the dealer $195.00 and is sold to the consumer for $895.00. The $700.00 is pure profit to the dealer and is very rarely negotiated down during this process. The service contract may only cost a dealer $650.00 and is being sold for $2000.00. The difference in these items are pure profit to the dealer. You see, if you only paid $995.00 for the same contract, the dealer still earns $345.00 profit from you and you still have the same coverage that you would have had if you had paid the $2000.00. The same is true for the gap coverage. You are covered the same if you paid $395.00 or $895.00 if the dealers costs are only $195.00. The only difference is the amount of profit that you paid to the dealer. Another huge profit center is paint and fabric protector. In most cases the costs to apply the product are minimal (around $125.00 on average). In many cases the dealer charges you $1200-$1800 for this paint and fabric guard. As you can see, these products sold in the finance department are huge profit centers and are negotiable. I also have to recommend the value of most all products sold in a finance department. It is in your best interest to get the best coverage possible at the best price possible. Always remember this: The dealer has to make a fair profit to stay in business. It just doesn't have to be all out of your pocket.

Poppy, Konspirasi Bintang Baru Amerika Yang Hidup Ibarat “Jelmaan Illuminati”






























Getting Un-Frustrated With Your Finances - What Separates The Successful From The Un-Successful What if you would have been "in the know" and purchased Apple stock, going green, bottled water or gourmet coffee years back when they were little known stocks or concepts- where would that investment have put you today? This information I am about to share with you will affect your Economic Situation tremendously. This will be some of the best time that you have ever spent, really taking a good look at where you are at today, and where would you like to be, and is there a difference? There are many paths you can take in life and depending on which one you take will lead you where you want to go. Where are you at currently in your life? Do you have a job that you like or maybe one that you do not like? Do you maybe not have a job, are you retired? Do you have a good business? Are you making what you really desire? Because if you are here you probably are a person who is looking for more. Now, the difference between this guy, many of you may have heard of Bill Gates before, and this guy- homeless, out of work and living with his family out of his car, is nothing but a couple of decisions and a few skills. First, Bill makes decisions and acts on them. Bill has made a couple of different decisions and has some different skills. What we've learned about the economics in this country and in the world today are that most people are following the wrong plan, making the wrong decisions, and don't have the right skills. Like a golfer, he is still playing with a golf club and a golf ball on a golf course BUT when you learn to adjust your swing just slightly you now get to win the championship. That's what this article is all about, teaching you that slightly different swing, or the different little grip, that makes all the difference. So, while you are reading I want you to take a few notes, write down a couple of things and see how this will benefit your life. There are three major challenges in the world today: lack of income, debt, and poor wealth building strategies. Now the point of this company is all about educating people with how to change their financial situation. There are three things that ALL wealthy people know- first, how to create income, how to eliminate and work with debt, and third- wealth strategies of how to get ahead so once you have money you can actually create a legacy in the future so this call is about all three of these things whether you have a great job, whether you have a business, whether you currently have debt or no debt at all, have credit or don't have credit- this presentation is about you. So have your pen and paper ready. A couple of mistakes, a little too much debt, and the average Joe winds up closer and closer to the homeless guy. The job market today is not overly promising, consumer and national debt is at an all time high, foreclosure rates are out of control and divorce is also on the rise due in large part to money problems. The average person works very, very hard but doesn't get ahead by working hard because unless they learn some sort of level of leverage they are always going to have to work very hard. Let's take a hairdresser for instance- they make $60K a year and gets into a little accident or something happens and for some reason can't work for a couple of months- so for those two months they live off their credit cards and that can create a $10K decrease yearly in their income over 3 years. Debt comes from necessities and from non-necessities. Some people wind up in debt by just paying your bills, or by trying to get ahead or even one poor decision, having an accident or credit problem. It's not just about purchasing things you couldn't afford. It's that you needed that money in the first place. The first way to get out of debt is A- to make more money but B- imagine not having to pay all of that off, by starting to learn how to make your money work for you and grow it to long term wealth. How many people out there do you believe would like to get out of debt, become wealthy, and be healthier- to be in better shape mentally, emotionally and physically? The answer is, almost everybody. If you have children you are going to want to educate your children on this. You can save your family and friends thousands of dollars year- not all at once but yearly by knowing this. The average person is at least $3600 in credit card debt and with interest if you pay the monthly minimum it will take 5-9 years and you will pay a total of at least $5-7000 or more. We can show you how to pay this off in 1-2 years instead of 9. Imagine how much savings that is for you that equals into cash- even if you fill your mattress with it, put it in the bank or even invest it. You have just increased your income by knowing how to pay your debt correctly. Ultimately the question is up to you, which guy do you want to be? We live in excess and if we don't learn how to control that excess, we will never end up with any excess. That is one of the problems in the world and it's not getting better you are a part of that problem and because of that your children will be riddled with the same problem and get messed up and living in financial ruin before they ever get started- they will be the next generation of the homeless. Here is the solution. Successful people work on the three things we have just discussed. If you do these three things it will change your life. So once again, what does separate the successful from the unsuccessful? What separates them is the ability to decide. Wealthy people are able to make decisions rapidly where as the average Joe takes their time and some people make no decisions at all. Wealthy people decide and act. So whether being more successful, getting out of debt and being more healthy is for you or not- the big question is will you decide to take action and get ahead in any economy so you can get your finances where you want them and leave the legacy you truly desire. Terri Shy Wealth Masters International M3 Elite Master Consultant Professional Network Marketer