Cash deals have always affected our results. However, in today’s economy, cash deals and lines of credit have soared.
“Even the top performers are only converting one in four cash customers to finance,” says Matt Williamson of Team One Research and Training Group. “What are the other 75 percent of your cash/credit line customers buying in F&I?”
Williamson says most business managers ignore cash-paying customers in order to spend time with the finance customer, where the business manager can make most of their money.
“Who says cash customers won’t buy our products? They will! What cash customer isn’t concerned about loss?”
On Sept. 1, Team One, the master agency for On Track Financial Solutions, launched the RTI GAP Program. Underwritten by AIGCI, he says the Return To Invoice GAP Program provides protection for cash and line-of-credit customers.
If the vehicle is written off during the first four years of ownership, RTI pays the difference between the primary insurance settlement and the vehicle invoice amount, he says.
Eligibility: maximum vehicle purchase price of $70000; maximum claim payout of $15,000; 48-month term; new or used vehicles (current plus seven model years).
He offers this example. If the customer pays $22,000 for the vehicle with cash and 26 months later, the vehicle is a total loss due to an accident, the primary insurance company pays out current fair market value of $14000 on the vehicle while the On Track RTI program pays $8000 to the customer.
“What cash customer would refuse this coverage? Don’t let cash deals defeat you!” Williamson says.
For more information, contact Matt Williamson firstname.lastname@example.org or call 519-471-5150.