Competing with

Dealers

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If a client has already been quoted:

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• Always talk repayment, not rate
• May be hidden fees which brings the repayments up

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• Make sure you’re comparing like for like quotes
• Has the dealer included a balloon?
• What term have they quoted?

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• Dealers generally have 1-2 lenders, you can have far more options
• It’s not always about rate/repayment
• What is important to the client? (low fees, no early termination fees, higher balloon etc)

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• Does the client need any further lending that the dealer may not be able to help with?
• Van fitout
• Tools
• Personal Loan

Speak to your client about how dealers operate:

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• Advise the client that the dealer will be very pushy to take finance
• They may throw out interest rates and repayments that are unachievable just to get them to make an application.

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• How dealers make money
• Advise the client that the dealer may offer a better finance option, and then make the money back on the car sale!

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• Talk about lender options
• You’ve matched them to the best possible lender for their needs from a full panel, a dealer will only have 1-2 options

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• Dealers have a point of sale exemption.
• Business Managers aren’t required to have any qualifications to organise finance on vehicles they are selling
• Talk about your qualifications and how you are better placed to act in their best interests.

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• Advise client to mention they are paying cash for the car
• this could help prevent the business manager and salesman pushing so hard to offer a quote and gain an application.

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• Talk about impact to credit file
• They are already approved, another hit on their file could be detrimental to the current approval they have

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Competing with Dealers

You won’t always be able to beat the dealer, or win the deal, however, you’ve still helped the client achieve the best outcome, and they will come back to you for future finance.

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Competing with Dealers (cont.)

Keep your customer out of the dealership

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The last thing you want is your customer going to a dealership. Here are ways you can help prevent that:

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• Use the LMG Vehicle Sourcing Agent (Coming Soon)
• They will find the car, negotiate price, and supply you with the tax invoice. See below.

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• Find the client a private sale.
• Make enquiries as to the actual car the client is looking for and filter a car sales search for Private Sales only. You can use the Glass Guide tool to value the vehicles, and find some good value options to send to you client.

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• If they want to go to a dealer
• Make the first contact with the dealer. Advise your client is approved, and you’re only sending the client in there if finance won’t be offered.
• Advise your client that if they need to sign a contract of sale while at the dealership, then have ‘Subject to Finance’ included.

Requesting an Invoice

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When you request an invoice from a dealer, they may delay sending it to you while they try and win the finance.

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• Follow up every 2 hours
• The longer they delay, the more likely they are to offer finance to your client

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• Contact the Salesman
• Sometimes the business manager will delay to try and win the finance, but the salesman wants the sale.
• If the business manager is delaying, talk to the salesman and advise the client has found a car elsewhere and will walk if we don’t have the invoice that day

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• Last resort
• Advise the client that the car dealer is delaying, have them call the dealer and advise they are pulling out of the purchase if an invoice isn't sent in X hours.

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