• Be knowledgeable and up-to-date on
all financing promotions available to
your customers.
What do I disclose?
The customer needs to first complete
a paper credit application in-full. After
completing the application, there is a
requirement commonly recognized as
‘Know Your Customer’ requiring two
forms of identification to be checked.
Revolving financing, requires the
identification checked to be noted on
the paper application. The terms and
conditions of the financing options on
the application should be torn off, or
copied and provided to the customer.
The original application is mailed to the
bank for their records. At completion
of the sale, the customer’s signature
is required on the sales receipt. This
ensures the customer understands and
agrees to the financing promotion.
Installment loans require Truth-InLending Disclosures, detailing the terms
of the loan including: annual percentage
rate, finance charge, amount financed,
total of payments, total sale price,
payment schedule, security, late charge,
prepayment, and contract provision.
You must be sure, when offering
financing to your customers, regardless
of type, you and your employees
need to be aware of any disclosures,
requirements, and federal regulations
the dealership must follow. A good
lender, banking partner, or service
provider should offer free training and
resources to you and your employees.
Don’t forget
to visit us at
Booth #524
70
Well informed, educated customers
drive dealerships to find alternative
ways to assist with retail financing.
Offering multiple financing resources to
your customers allows the dealership
to experience increased sales, repeat
business, and customer loyalty. Also,
your customers are able to finance in
ways that might not have been available
to them otherwise.You no longer have
customers saying, “We’ll be right back”,
as they go search for financing on their
own.
NATDA Magazine www.natda.org