How to Easily Explain Dealership Financing to Your Customers
You have a client ready to buy a car––outstanding! They’ve picked out their new ride, are excited to drive it off the lot, and all that stands between that experience is signing the paperwork, handing over the keys, and the funds to make it happen.
Securing dealership financing is something clients need to walk through with someone who helps them understand the process. Buying a car is a big decision. You want to put your client at ease because they have made a great choice buying from you. That’s why Bay Motor Finance has provided the ins and outs of financing so you can better explain it to your customers when questions arise.
The Loan Process
Before customers shop, knowing their monthly car budget can help you determine what car is in their price range and how to get them into the driver’s seat. Dealer-assisted financing is the best way to streamline the consumer’s car purchase processes by providing competitive auto loans that save customers money, even with credit histories considered fair or poor. That’s where Bay Motor Finance comes in. Our ability to secure loans and establish relationships with car dealers sends your customers rolling off the lot in style, faster.
Dealer financing, also called special financing, refers to a type of indirect loan. When a car company sets a campaign for 0% financing or “No money down,” it is because they are already working with a financier, like us, to launch the program. This loan begins with a dealer offering limited-time offers to their customers. These dealer-originated loans are then taken over by a third party at a discount. Your clients’ terms do not change. What they signed on the dotted line for remains intact.
The Loan Fine Print
In May of 2022, the Consumer Financial Protection Bureau (CFPB) published an advisory opinion that agreed with the Equal Credit Opportunity Act (ECOA)—a landmark federal civil rights law protecting individuals and businesses against discrimination in accessing and using credit. It forbids lenders from discriminating against customers after receiving a loan, not just during the application process. What does this mean for the dealer-client relationship when they walk into the financing office? It means open and honest communication about:
- The cost of the vehicle
- Financing terms
- Any add-on product or services costs
- Discounts or rebates available
- Availability of vehicle in-stock
- When financing is finalized
- If the funding is for a lease or purchase
For dealers who have always put clients first, these are standard practices. Clients, no matter who they work with, can now rest easy knowing these protections are in place for them. For Bay Motor Finance, this is how we have always done business. We never have and never will engage in unfair lending practices. Offering the best solutions to our clients is at the heart of what we do.
Time is money. Dealer financing can help ease some of the pressure and effort for customers who need a loan. You can move forward with the client information you have on hand by providing it to the lender with whom you have a relationship. Rather than take the time to pursue other means of financing––long application processes, red tape at banks, needing rapid funding––you can do that for them with Bay Motor Finance.
Customer Service Matters
At the end of the day, what it comes down to is that you have provided your client with a stress-free experience that allows them to make a purchase that impacts their quality of life. Whether it’s providing transportation to work or hitting the road for that family trip of a lifetime, we both work together to help make dreams come true for Maryland and Delaware car buyers every day.
Even though the car-buying landscape is constantly evolving, Bay Motor Financing is committed to dependable financial services for our dealerships and partners. This includes fast approvals and funding for your customers regardless of their credit score. Ready to partner with a winning team? Contact us now.