NATDA Magazine Sept/Oct 2015 - Page 70

• 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