Our dealership has a very good repeat customer who has a car fetish. Every 4-6 months he gets tired of his current vehicle and wants a different one. Getting a new vehicle twice a year has been going on his whole life by looking at his credit report (29 auto loans – all classified individual loans).
I’ve seen him in fast vehicles such as a Ford Mustang Shelby, Pontiac GTO, Dodge Ram SS/T. Lately he took advantage of some Toyota specials on the Tundra and got a loaded extended cab 4X4. Due to its gas mileage, he traded that on an Infiniti G37 coupe.
Each time he finances the vehicle at the MAX advance for 72-84 months while rolling in a staggering amount of negative equity.
Usually, to get a deal done, the dealership has to take a mini-deal and ALL of my negotiation skills with the banks just to help this guy with his impulse purchases and roll a car – because of his negative equity.
Sometimes we couldn’t trade him out with $23,000 of negative. He would go home, think about his decision for a month or two, and come back with a few thousand down at always the right time of the month for us to give a car away.
The funny thing is that he understood the meaning of and always purchased GAP on each vehicle. He won’t be sorry if he ever has to use the benefits.
Obviously, with each new vehicle purchased from my dealership, I would have to cancel the GAP policy from the previous vehicle.
After doing some math, this customer is single-handedly responsible for about 15% of the total GAP cancellations processed in the 4.5 years I have been in F&I at my present dealership.
True Story (He just left the dealership).
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