Best way to keep an after hours deal together?
Everyone's had deals like this. It's 5:30 on a Saturday, the customer is a 630 fico who should get done, but all the banks that can do the loan are closed. What's the best way to keep the deal together when an approval won't be available until Monday morning?
Replies to This Discussion
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Permalink Reply by aaron on -
put em out on 3 contracts explaining the best case and worst case scenario
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Permalink Reply by Thomas B. Hudson on -
I'm assuming that the "put the customer on three contracts is a joke. Multiple contracts would violate a huge number of federal and state laws. That's an invitation for a lawsuit, and one the dealer would lose.
The other suggestions call for a spot delivery. In the states where they are permitted (and that isn't all states) spot deliveries must be done carefully in order not to violate applicable state and federal laws. If your dealership lawyer has not reviewed your spot delivery documents, including your "unwind" agreement recently, you ought to request that he or she do so. You ought to have your spot procedures documented, too. You should make sure that you're in a position to put the customer back to square one if the deal doesn't fly. That means don't sell the trade-in until the contract is assigned and all stips are satisfied. We also recommend that dealers not try to get piggy with charges for mileage and other fees if the deal doesn't go. Spot delivery can be dicey from a legal standpoint, even when it is done right.
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Permalink Reply by Tim Burns on -
Mr. Hudson,
I started a policy years ago that we didn't sell the trade until the deal funded. I also started faxing stips to the lender while I had them on the phone and getting them approved upfront.
In Texas, Bailment Agreements aren't worth the paper they're written on but dealers still use them. More & more dealers won't "spot" a deal unless it falls into a lenders automatic approval program or you have some sort of conditional approval in hand. Being aggressive and smart aren't mutually exclusive...If I caught word of one of my guys putting somebody on multiple contracts, they'd have to catch a ride home with the customer.
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