Are Cash Customers truly the most Profitable?
Published Apr. 2018
By Jeff Blassberg, SVP U.S. Regional Sales and Credit Operations
Customers come into your store, ready to pay cash for the car they’ve been eyeing on your lot, but are cash customers really the best long-term sales for your dealership? By converting cash customers into GM Financial customers, they can reserve their cash flow, and you can help your bottom line while increasing the likelihood for repeat business.
Exclusive incentives and discounts
As a floorplan dealer, you not only benefit from down payment assistance (DPA), you can also use your exclusive Dealer Dividends® bonus multiplier dollars to give your customers incomparable deals your competitors just can’t offer.
Pro tip: Using an incentive, you may be able to offer cash customers a higher trim or model with the same budget in mind, keeping customers happy and making the sale. Now that’s what we call a win! Many GM Financial floorplan dealers have increased their finance penetration just by utilizing their Dealer Dividends this way.
Repeat business with lease financing
When customers are approaching the end of their lease agreement, GM Financial sends them offers and information on other vehicles they might be interested in, which directs their business right back to your dealership.
Pro tip: Don’t forget, with leasing, you also have the possibility of adding back-end products to potentially increase your profit margins.
Long-term customer support
According to a Nielsen study, today’s customers are 90% more likely to trust a brand referred to them by a friend. The key to delivering outstanding, word-of-mouth referral experiences? Information and education.
- With MyAccount, the GM Financial customer portal, your customers can manage their account easily.
- KEYS® by GM Financial, our very own money management educational program, can help your customers learn more about their own finances with online resources and select events.
Remember, satisfied customers equal repeat customers. So help your customers put their hard-earned money away for a rainy day, and instead, suggest a retail installment contract or lease with GM Financial for repeat business for years to come.