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jpemberton
USA
378 Posts |
 Posted - 04/28/2012 : 06:50:56
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| This program so far has been an F&I killer. Is anybody running into this and have any tips? |
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cdjman
USA
178 Posts |
Posted - 04/28/2012 : 08:42:09
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I've recently cut off Ally because of cutting back deals for no good reason, not approving deals I'm getting auto-approvals elsewhere, etc.. Only thing they have seen from me of late is subvents
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It's not my fault....It's the little men that live behind my eyes. THEY are the crazy ones..... |
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Marv
Monaco
8010 Posts |
Posted - 04/29/2012 : 11:15:52
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My experience with them is they'rfe guidelines appear to actually be rules. For example, the 135% all in call in S & A tiers can't be broken so I've learned not to submit a deal to them if I'm over the limit with my backend.
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jpemberton
USA
378 Posts |
Posted - 04/29/2012 : 11:28:56
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Ally can really be a pain. The Buyer's Choice program makes it even worse.
For those that don't know, you have to plug your deal numbers into an online calculator and then you have a new loan term (usually longer than 72 months). You then have to write the loan at that term.
For the customer, there is an advantage that Ally will offer to buy back their vehicle at the end of 48 months ($495 disposition and $0.25 for excess mileage and wear and tear charges apply). The customer doesn't have to get rid of the vehicle, they can choose to keep it and continue out the loan term.
Here's the problem: Remember that you plug numbers into an online calculator, right? If those numbers change (in other words, I sell a vsc or gap or anything...) then the loan term can change. I've had deals were a $2200 vsc dropped my loan term for 81 months to 75 months!
Not only does this create a massive difference in the payment, it makes it impossible to create a menu because I can't determine what the term will be.
The only thing I've figured out is to present the concepts of the products to the customer and then asking them to tell me what they want quotes on. As you can imagine, I haven't had much luck with this.
I don't know if Buyer's Choice is only for Chrysler/Jeep/Dodge or if they have it for other manufacturers.
If anybody has experience with this f&i killing program, or even has any suggestions, I would greatly appreciate it. |
Edited by - jpemberton on 04/29/2012 11:31:16 |
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miles
USA
9226 Posts |
Posted - 04/29/2012 : 16:41:37
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Wow. That sounds like a seriously flawed program...
Anyone else having this issue? Anyone else have a way around this issue???
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jimbo67
USA
2044 Posts |
Posted - 04/30/2012 : 10:52:54
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I have yet to do an ABC contract because it makes back end very difficult. The one customer that did ask about it, it took me 15 minutes to get the numbers with the varios back end options I have on my menu. They were a lease customer anyway, so it really did not make sense to them. As far as buying deals, they have been very aggressive for me. I get a few "tier bumps" and "rate shaves" a month and haven't had any major issued with them. We do not use them for floorplan either.
It only takes 20 years for a liberal to become a conservative without changing a single idea. |
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jpemberton
USA
378 Posts |
Posted - 04/30/2012 : 12:15:37
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| The problem that I've got is that the sales managers are quoting and closing the buyer's choice. In addition, they've even added the extra rebates on Grand Caravan into our advertising. |
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jimbo67
USA
2044 Posts |
Posted - 04/30/2012 : 12:54:44
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I would start offering a traditional 96 month loan
It only takes 20 years for a liberal to become a conservative without changing a single idea. |
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LAURALY
USA
72 Posts |
Posted - 05/02/2012 : 14:45:23
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| I am a Chevy store so thankfully we don't have the extra money on balloons like some lines do. I could not believe this program when I went for the training. It is impossible to explain to a customer and impossible to present a compliant menu. How do you tell someone that if they add product then their term goes down? It is the dumbest program I have ever seen. |
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jpemberton
USA
378 Posts |
Posted - 05/02/2012 : 18:22:03
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quote:
Originally posted by jimbo67
I would start offering a traditional 96 month loan
It only takes 20 years for a liberal to become a conservative without changing a single idea.
The problem is that the dealer has no control over the term. I have to plug the numbers into the calculator and see what happens...
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jpemberton
USA
378 Posts |
Posted - 05/02/2012 : 18:24:48
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quote:
Originally posted by LAURALY
I am a Chevy store so thankfully we don't have the extra money on balloons like some lines do. I could not believe this program when I went for the training. It is impossible to explain to a customer and impossible to present a compliant menu. How do you tell someone that if they add product then their term goes down? It is the dumbest program I have ever seen.
Exactly. Not only is it impossible to effectively sell product, but it is actually impossible to present a compliant menu. Not just difficult, but truly impossible! |
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miles
USA
9226 Posts |
Posted - 05/02/2012 : 20:22:25
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OK, so what happens if you just don't offer this program?
Please forgive my ignorance, I'm on the powersports side and don't have this problem. (Yet)
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jpemberton
USA
378 Posts |
Posted - 05/03/2012 : 07:12:27
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quote:
Originally posted by miles
OK, so what happens if you just don't offer this program?
Please forgive my ignorance, I'm on the powersports side and don't have this problem. (Yet)
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I don't have a choice. The sales desk is closing deals with it. Some vehicles (like Grand Caravan) have an additional $2000 rebate when you use buyer's choice. If the deal comes to me as a buyer's choice, I'm pretty much committed to papering it that way... |
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Anybody being hit with the Ally Buyer's Choice?
