RV PRO

May '17

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rv-pro.com May 2017 • RV PRO • 71 Let's not forget that every lender, regardless of what they say or advertise, likes the customer to be in an equity position upon entering the loan. " " Let's not forget that every lender, regardless of what they say or advertise, likes the customer to be in an equity position upon entering the loan. So, the advance is important. Does this mean that lenders do not have approval of over advances? No, some lenders still approve deals with over advances. They do so for customers with strong credit profiles and who have proof of liquidity. The question becomes: Who is best suited to conduct a credit interview? And when is the best time in the deal for the credit interview to occur? In many dealership processes, the sales asso- ciate may take the credit application for speed and adding some cement to the deal. At the same time, the sales manager usually will run a credit bureau check on the customer so he can quote payments that are reasonably close to what they will end up at. Loop in the Finance Manager ASAP The best business practice is to get the finance manager involved in the sales process as soon as possible any time the credit bureau shows any areas of concern, or when the sales manager has a need for clarity regarding the customer's credit profile. After all, it will be the finance manager in most cases who will interact with the lender, and it is he who will need to communicate the customer's story to the lender. Just as Joe Friday said on television show "Dragnet" so many years ago, "Just the facts, ma'am …" All credit discussions should be done in an office with a closed door. No one likes having his or her credit wounds discussed in an open showroom. Each customer deserves to be in a non-threatening environment when discussing past credit issues. The finance manager should introduce him- self as the dealership representative who works with the lenders to secure financing. Given that the finance manager is new to the transaction, he should ask for permission to discuss the past credit profile with the customer. The finance manager does not know who is accompanying the customer on this purchase. It could be a spouse, it could be a best friend, or it could be someone they just met in a bar. The idea is to leave the customer in a face-saving environment, both physically and mentally. When the customer grants permission to dis- cuss the past credit issues, then the interviewer may proceed and write down notes. No, we cannot show the credit bureau report to the customer, because the dealership is not a credit reporting company. To do so is a violation of the dealership's subscriber agreement with the credit bureau service that you are signed up with. The reason, of course, is that the dealership

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