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Michael Hirschfield

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Bigger Down Payments this Tax Season?

8a504842441a4e297c0435dda40f4732.png?t=1Bigger Down Payments this Tax Season?

Tax Time is here! In fact, the Wall Street Business Journal reported that as of February 7th the IRS has already issued $64.4 Billion in refunds! Even better news…the same article reports that the average Tax Refund is up 4.6% from last year! (Click here for the full article)

There are more buyers in the market right now with more cash on hand than during any other time of the year. If you are in the business of helping customers with less than perfect credit finance newer nicer vehicles, this is probably your favorite time of the year! Is your adrenaline pumping yet? Mine certainly is!

Why are Tax Refunds so important in this business? Those seasoned in offering Special Finance solutions know that the key to any deal is Down Payment. Down Payment always has the ability to take a bad deal and make it good, or at a bare minimum.... make a good deal better.

Amazingly enough, despite the importance of Down Payment, many Dealerships Average Down Payment on Special Finance deals hovers well below $1000. (This generates low gross and low volume.) Even more amazing is the fact that these same Dealers are ecstatic if they can get to $1200-$1300 average Down Payment during Tax Time. Did you know that the average Tax Refund so far this year is $3288? Are you still happy with $1200-$1300?

If you are looking for bigger Down Payments this tax season, it first starts with realizing that generally speaking: NO ONE WANTS TO PUT ANY MONEY DOWN! It doesn’t matter if your customer has good credit, or bad credit. It doesn’t matter if they are buying new or used. It doesn’t matter if they have a Tax Refund or no Tax Refund. NO ONE WANTS TO PUT ANY MONEY DOWN!

The key to getting bigger down payments is “selling” the customer on putting more money down! Just because they have it doesn't mean they will give it to you.....It has been said for generations that the majority of all sales are made after the 5th attempt, yet how many times do we ask for money down? More importantly, do we build value in putting money down, and ask for the Down Payment a different way each time? What's In It For Me? W.I.I.F.M. Remember, when value exceeds cost a sales is made. Want more deals and more gross? Get BIGGER Down Payments!

Below are 5 Value Propositions that you can use this Tax Season to take advantage of the Increased Tax Refunds and Get BIGGER Down Payments:

 

1: BIGGER DOWN PAYMENT = LENDING APPROVAL & FINANCE / CREDIT OPPORTUNITY*

“In order to secure financing the Lender is requiring $____ down today. Again, our goal today was to find a way to help you get your credit working for you rather than against you. We discussed how having a higher credit score could change you and your family’s lives, and we want to set you up for success! By providing the additional $______ money down you can take advantage of the financing opportunity and drive your newer nicer vehicle home today.”

2: BIGGER DOWN PAYMENT = LOWER MONTHLY PAYMENT*

“As we discussed, it is absolutely imperative that you leave here today with an affordable payment. We want to set you up for success. If you are like most of my guests, having an additional $50-$100 a month available could mean the world of difference for you and your family. By providing the additional $_____ money down you are setting yourself up for success with a lower more affordable payment.”

3: BIGGER DOWN PAYMENT = LOWER FINANCE CHARGE*

“Obviously, you want to save money. When you buy a vehicle you have to eventually pay for it right? Every dollar you pay today is interest free, 0%! If you could afford to pay half today, half your purchase would be interest fee…. By providing the additional $_____ money down you are saving a lot of money.”

4: BIGGER DOWN PAYMENT = BIGGER DISCOUNT*

“We understand you are not able to provide the $______ down payment that the lender is requiring. We want to help! To lower the risk to the lender and secure financing on your newer nicer vehicle we are willing to discount the vehicle $2 for every $1 in additional down payment. By providing the additional $______ money down you could save a lot of money, secure financing, and drive your newer nicer vehicle home today!”

5: BIGGER DOWN PAYMENT = MORE EQUITY AT TRADE-IN*

“Did you know this down-payment could actually help you on your next purchase as well? We want to set you up for success! By providing additional money down today you could see a dollar-for-dollar benefit at trade-in.  If your vehicle was worth $5000 at trade in would you rather owe $4500 or only owe $_____. By providing the addition $______ money down you may only owe $______ having the same down payment you made today available as additional trade equity for your next purchase.”

 

Please reach out to me if you have any questions about this article. I hope you all have a BIG Tax Season!

*This article is not legal advice. As always, be sure to check with your attorney before implementing any policies or procedures to ensure compliance.

 

Michael Hirschfield

 

 

Michael Hirschfield

President

Cornerstone Dealer Development, LLC

 

Direct: 920-422-4007

Fax: 888-395-0427

Mike@FoundationToWin.com

 

 

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