How do Dealers earn from All In plans?

[marktams86]

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]

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]

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_]

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]

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]

laki ng kita ng casa pag in-house financing

everything goes to casa (the downpayment & monthy payments)

[Balikpinoy]

All in plans also carry a higher interest rate which the dealer profits from.

[Balikpinoy]

Higher down payment means you are a lesser risk for default.