Episode 17: Captive Advantage
05/12/2021 / Secret Sauce
Mike Caposio of Rotolo Chevrolet in Fontana, California, was happy with his previous captive, so when reps from GM Financial initially came knocking, he wasn’t interested.
Eventually Mike realized that switching to GM Financial was going to be the right move for his dealership, but it took some time to prove that to his team. Once they saw what GM Financial was capable of, everyone got on board.
“Our previous captive did a tremendous job,” he said, “but we just found a way, together with GM Financial, to exceed those expectations.”
It all comes down to making more deals. Here’s what Mike says made the difference:
- Profitable programs
“Your programs are so lucrative and so beneficial to us,” Mike said. “For car deal after car deal, I’ve never seen anything like it. I’ve had some good programs, and we didn’t think they could be topped, but we have gone way beyond that.”
These special programs — available only through GM Financial — offer lower interest rates or cash-back offers on GM vehicles that your customers can’t get anywhere else.
And dealers floorplanned with GM Financial earn Dealer Dividends®. You can earn up to $1,000 per contract and can choose whether to cash out those Dealer Dividends, redeem as incentives to sell more vehicles or both. Plus, floorplan dealers get better terms on APR financing and qualify for specific incentive programs when financing used vehicle purchases through GMF DealerSource®.
- Deeper buying
When Mike realized GM Financial buys deeper than most banks can, he opted to eliminate his other subprime lenders. That means fewer fees.
“You don’t need a subprime lender if you have a bank like GM Financial taking care of your business,” he said. After all, GM Financial “majored in subprime” before we were GM’s captive.
- Dependable support
The team at Rotolo, which was recently named a 2020 Chevrolet Dealer of the Year, has built strong relationships with GM Financial and knows it can count on help when needed.
“We never get ‘we’re too busy for you.’ We get an answer, and we get done what we need done. You can’t ask for anything more than that.”
Now is a good time to talk to your Rep about the captive advantage.