Why wait for your funds on special finance deals?

 

A Difficult Situation

When you accept credit cards or use a check guarantee service, you routinely pay 2% - 3% to get your money in the bank as soon as possible. After all, money in your bank account is more useful than money owed to you. In a special financing deal, however, money in your bank account is a requirement. Your floor plan Lender expects prompt payment when you sell a car. But it can be weeks before your approving Lender is able to pay you. That leaves you in a difficult situation.

 

The Need for Cash

Some dealerships take units to the auction in order to obtain cash quickly. Although it can ease the case crunch, paying to get the car to the auction and then paying the sales fee - only to sell your car at a wholesale price - leaves something to be desired. On top of that, you're depleting your inventory, making it more difficult to sell the next car. The auction's sales fee alone is usually more than $150, about the same as Interim Funding's discount fee on a contract. Interim Funding's discount fee on a contract is as low as 1.25%.

 

Exposure to Risk

In delivering cars to sub-prime borrowers (usually with sub-standard insurance, if any), you're at risk if something happened to the car before you receive payment from the approving Lender.

 

 

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