A new study says that 80 percent of dealers think lenders will adopt flat-fee policies within the next five years.

The Rikess Group, an auto industry consulting firm, conducted the study along with accounting firm Dixon Hughes to gauge dealers´ attitudes toward a flat-fee dealer reserve. The companies surveyed 25 dealers and general managers and 12 finance managers, representing more than 230 franchised dealerships.

According to the study, 80 percent of dealers consider flat fees between $350 and $600 to be fair to all parties. When asked what the advantages of flat fees would be,

• 90 percent of respondents said less legal exposure for the lender and dealership

  
  

• 80 percent said less negative publicity

  
  

• 75 percent said minimal or no chargebacks

  
  

• 75 percent said higher sales of menu products due to affordability

  
  

• 50 percent said higher finance contract penetrations

  
  

• 30 percent said CSI improvement

  
  

• 25 percent said time savings for customers and producers

  
  

• 25 percent said administrative time savings

  
  

  But 20 percent of dealers feel that there will always be a rate markup policy because it is their right to negotiate directly with car buyers without any sort of intervention from lenders.