One could argue the Federal Reserve system was not created with the American citizen’s benefit in mind. If you have studied the early 20th-century banking system, you may have heard of a secret meeting on Jekyll Island where the Federal Reserve was created. This article is not intended to go into the depths of banking cartels, but these first sentences are intended to remind/inform you the system in control of our interest rates was not created to help you or me.
I believe the Federal Reserve is one of the greatest scams ever perpetrated upon a population to ensure the wealth of a powerful few. And that is why I love giving the Fed the FRIKIN Finger!
As car dealers, concentration is placed on sales prospects (floor & phone ups and leads). These are “in-market shoppers” who are very close to buying. They’re the least amount of effort and the type of customer sales training is focused on. Right now, these shoppers are most highly concentrated on interest rates. Depending on your store, there may be hundreds of these shoppers.
There are thousands of loyal customers in the service drive. Due to the average age of vehicles on the road breaking 12 years, new records are being set in service drives this year. This is an untapped resource for sales.
Used cars (trades) are still worth a lot more than when most people bought their cars. Many customers are not paying attention to what their car is worth or what kinds of cool new technologies are on newer vehicles. Most do not pay attention to the car business – shocking, right! We are the car nuts who pay attention to this stuff and are a minority in the world.
- Step 1: assume your service customers are not in the market for a car and have not considered what their car is worth
- Step 2: assume they have a lot of equity ($7,700 is the average amount of equity customers are playing with inside FRIKINtech payment products)
- Step 3: Give the Finger to the Fed by using the high amount of equity your loyal customers have to offset the increased interest rates
The average loan rate was 6% at 66 months. The average loan rate is now 9% at 66 months. The average new car is $48,000, so the difference between 6 and 9% APR on $48,000 is $4,558. If the average equity in your service drive is $7,700, your service customers can beat the higher rates by more than $3,000.
Give the Finger to the Fed by tapping into all that equity in your service drive.