Orlando, Fla. (PRWEB) August 18, 2009
In an effort to improve profitability and increase product sales in the F&I Department, Balise Motor Sales Co., began using the U.S. Equity Advantage, LLC, (USEA) automated bi-weekly payment service mid-2008. As a result the company has enjoyed much needed increases in F&I Department profits; a 55% increase in product sold per retail unit and an additional annual F&I product gross of over $1 million, for a service that costs nothing and pays a commission for each sale.
Ranked #57 on Automotive News' list of top 125 dealership groups in the United States, Balise Motor Sales Co., owns and operates 20 dealerships in Massachusetts, Connecticut and Rhode Island. According to Mike Balise, Vice President with Balise Motor Sales Co., the bi-weekly payment service is a great profit center for his dealerships while also being good for the customer, "The USEA program is working really well in our dealerships. We have greatly increased the sale of products contributing to an overall increase of $85 per retail unit. It's a total win-win for the customer and the dealership. With USEA we are able to show the customer that with this program they can afford to add in the warranty they really wanted but thought they couldn't afford, while keeping the same monthly payment. They even pay the vehicle off faster. It's a slick sales tool," said Mike Balise.
Biweekly payments for auto loans are more popular with car buyers in this tight economy because they enable consumers to pay off loans faster, thus reducing interest charges. The loans are paid with 26 biweekly payments a year rather than 12 monthly payments. With the Equity Advantage Program not only will they reduce the payoff term of the loan, but also reduce the amount of interest paid, and build equity in their vehicle faster - meaning that they will be in a better position to trade sooner.
By utilizing the Equity Advantage Program, a dealer can offer additional products to their customer while maintaining virtually the same monthly payment and keeping the loan payoff term essentially the same. The Equity Advantage Program also allows the dealer to offer a customer the benefits of an extended term without increasing the monthly payment and keeping the loan payoff term essentially the same - picking up $600-$1600 worth of product in the process, depending upon how it is used.
Balise Chevrolet has done particularly well with the program. Mike Spanillo, Finance Manager with Balise Chevrolet, was one of the first F & I Managers at Balise to use the program. In just 10 months, he has made an additional product income of over $188,000, an average of $18,000 per month. He has found it particularly good for selling smaller products such as an auto theft or road hazard product for around $395, and has been using it on 100% of his customers 100% of the time. The Equity Advantage Program is considered an "after line 5" product, which means that regardless of how many products the dealership currently offers, it can add this one to the list without having to sacrifice another product.
"Customers love this program, which is the first and foremost thing about it. They may want to buy a service contract but it can seem undoable in one lump sum. The light goes on when we show them on the screen what happens when they split the payment and they see how they can afford the extra products they want. It's helped with customers who were perhaps getting an extended service contract already and were trying to pick up GAP insurance as well, it now becomes affordable" Spanillo said.
For more information Phone: (866) 425-3729 ext 242 or visit: http://www.useabiweekly.com.
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