I signed up a few years back and I am a small dealership. Took me awhile to close my pool and I paid upfront for the sign up if you do the math and your serious about the program it's worth it. My first check was just over 22k. We are now a 1 rated dealer and looking to close are second pool as the back end money starts coming from the first. I highly recommend CAC and I love the program.
thanks Tammy. U must have been a 1 or 2 rated dealer?
Actually I was a 4 when it closed. I stayed a 4 a few months and slowly moved to a 1 earlier this year.
I agree with you, they will audit you every so often. If you are doing things that not in violation of their policy's you WILL get all your money. I did.
thanks David. I think the key is being a high rated customer. However, its CAC that approves /underwrites/determine the loan for the customer. Yet the customer's failings blowback on dealer.
Bad things do happen while people are paying back their loans, but you can also be in charge of who gets a loan. You know theirs people that just won't pay anyone sometimes and I let those walk. The goal for you is to mediate the risk on your end. Your goal is for those 2 and 3 customers to perform like 1's. That's what helps you when a 1 goes south. You want a good mix of customers not just 1 and 2's.
Good points Tammy. It makes me feel better knowing u were a 4. If u can imagine--i was a 7 so we hit 100 but no bonus pool. I think you are right about being more selective even for those 1/2s. As a small dealership like yours, you understand all too well, the cash flow imperative of getting deals done. CAC --by far--is the best for cash flow. We get paid the next day so when a 1 or 2 can get done it is very hard to resist. But 104 CAC deals in 17 months the only bonus we got was the end of the $95 fee....hope we can turn it around!
WOW that's a lot of work for little express $$. What do you think happened? Did you have a tough audit? I realize you didn't pay upfront and had the money taken from your express check for the sign up fee. Where did the rest go? You can overcome a 7 it will take time. Work hard to read your customers and really match them up just like we did with BHPH. Do you want that customer? If you can honestly say I'd loan him money on that car then no matter what the rating of the customer do your best to make it work. You should have a good loan. You need to realize in the end they ARE still YOUR customers. You receive 80% of their payments in the end. So if you are just looking to book a loan and not feeling good about them guess what you are not going to ever see any more money that the down payment. You are going to go all the way to the end of the dealer rating scale. You really need to look at your CAC money as YOURS. They are just your partner helping with cash flow so you can basically BHPH your deals. The better the deals your putting in the more money your going to receive in the end and upfront once your turn your dealer rating around. I love my CAC program and support I get from all my reps. They are their to help you and if I where you i'd be talking to my MAM and looking at my program to pin point where you can do better to turn this around to make yourself money off your deals from start to finish.
Well we were doing ok but one guy brought the car back after 2 days with buyer's remorse regarding the payment. Our CAC set that was the tipping point sending us into the dungeon rating scores. My frustration with CAC --though i think they are the best we stried Auto Secured Lending and Pelican---is they approve/rate the customer. We live with the consequences. The one they said was a tipping point for us, left our lot happy just got sour after he thought about 45 payments etc. CAC for us is all cash flow. Just love to get where you are Tammy with a big check in the end!!!
We do buy here pay here and yes we are alot more selective with our money. By the way on your BHPH do u know of any company that checks if liability insurance is still effective? Trying to save time if there is one source. thanks again