Spot Deliveries

[ssd]

I have been trying to implement restrictions on accepting personal checks for vehicle deposits - i.e. perhaps requiring certified funds. The sales manager thinks that would interfere with spot deliveries. Was wondering what safeguards other dealerships are putting in place to prevent ending up with a bad check and a delivered vehicle..... Signed promissory notes when checks are accepted?? Credit checks for cash customers?? Thanks.

[pjdevereaux2003]

We used to accept personal check but salesperson was required to call bank to verify it was good. If salesperson failed to do this or accepted check during non-bank hours, bad checks came out of his pay. Then all of sudden "spotting this car" was much less crucial.

If you are talking about deposit/downpayment checks, not payment in full amounts, then credit cards and Telecheck are good alternatives.

IF customer has the cash in the checking account, they can also withdraw the cash from an ATM.

[scotstrong]

Bear in mind that many banks nowadays will not verify if a check is good by phone.

An interesting observation I have made over the years is that the weaker sales staffs and sales management do far more spot deliveries than the stronger sales staffs and managers. If you are so afraid of losing a deal to a competitor, then maybe your deal wasn't a very good deal and you are selling strictly on price and do not know how to sell VALUE. Value is what creates loyal and repeat customers.

Spot deliveries tend to create the most headaches for every department in the dealership. They should be the exception and not the rule.

Scot Strong

[ADP TM]

Selling value in a payment world.. I have worked as a sales manager in both import and domestic stores, and I have realized that their is a lot of emotion involved in around half of the purchase decisions made. Also, it is much easier to sell value in the import store, the customer already knows they are going to pay a premium for the product. Bottom line, if you are not spotting cars, you are missing deals.