How do Dealers earn from All In plans?

**marktams86** · March 6th, 2014 12:35 PM

Hi Good Morning,

Im just curious as to how dealers earn in their all in financing promos? all i know is that they get a certain amount of incentive when they refer a client to a particular bank.and they get the money one time big time.

is there any other way they are earning? like on a monthly thing?

Im currently doing a study on the dealership business model and one of the potential earnings mentioned by the dealer is thru financing.

**niky** · March 6th, 2014 12:42 PM

Not quite sure it's the same for every dealer. I believe some have their own in-house financing arm, funded by the owner. Others go through a bank and add their cut on top of the bank's.

**marktams86** · March 6th, 2014 01:11 PM

I see.. meron pa palang in house financing arm ang ibang dealers? so sa kanila din yung kita at interest? parang toyota financial services ba?

**_Qwerty_** · March 6th, 2014 01:13 PM

usually pag all in eh low down payment..less than 20%.. pero ang laki naman nang interest.. don sila sa interest kumikita.. baka may percentage sila don..

**rafmac** · March 6th, 2014 05:01 PM

Dealers would act as agents of the banks this is the reason why some dealers or through their sales staff would let the customer fill out several application forms for different banks. Either they earn commission from the bank or they have an add on rate. This is the reason why in some cases the monthly amortization of dealers are higher compared with the computation of the banks.

**uls** · March 6th, 2014 05:26 PM

laki ng kita ng casa pag in-house financing

everything goes to casa (the downpayment & monthy payments)

**basti08** · March 6th, 2014 05:32 PM

Sa SI/DI sila kikita. Add-on na yun sa interest. (Salesman Incentive/Dealer's Incentive) modal factor na yun na dinadagdag sa computation.

**uls** · March 6th, 2014 05:43 PM

pag bank financing may binibigay na commission mga bangko sa mga dealer (dealer's incentive)

**uls** · March 6th, 2014 05:45 PM

whoever the lender is the lender makes money from the interest

if the lender is the casa itself it will make far more money than if it sold the car in cash

**marktams86** · March 6th, 2014 07:03 PM

thanks for the input guys. so most likely they would just earn outright from the amount that was financed by the client right? so mas maganda pala kapag sa banko ka na rumekta kung kukuha nang loan.