Nice story ARCrawford,
The Select Finance deal is brilliant for the dealership as it changes the way people think about buying cars. Instead of making payments with a view to owning a car outright, what could be better than getting people used to the idea of a regular monthly payment and then automatically changing the car for a new one every couple of years?
I don't imagine that the salesman will make a worthwhile commission on the sale of the finance scheme, but it will build up a useful "book" of virtually guaranteed upgrades that should make his or her life much easier within just a couple of years.
It's much easier for a sales person to stay in control when there is the imminent propsect of their car returning to the finance company and a large bill for excess mileage turning up or, alternatively, a large balloon payment invoice arriving in the customer's post one morning. As each car comes to the end of it's finance period it will be much harder for the customer to "dither about" / procrastinate and the route of
least resistance for the customer will simply be to say "yes" and sign a new finance deal.
The schemes certainly have their uses for some customers (I Love MINI, Laura seems to be playing the game to her advantage!), but I can certainly see why dealers and sales people would like to see more of them!
Tigger.
PS: I work in sales! You can guess, can't you?!
