This is PART 2 or 2.
Many customers will have concerns or object to the higher interest rates on new and used vehicle loans. The following are additional rebuttals that may help:
Rebuttal #3 } IT ALL EVENS OUT
Over the course of your 50+ year car-buying career, you will buy new vehicles at various different interest rates from 0% - 13.75% (that was in 1986), and everything in between. Interest rates are set based on the economy and Bank of Canada policy. Sometimes you will be buying when rates are lower and sometimes you will be buying when rates are higher. It’s almost unavoidable, but IT ALL EVENS OUT over a longer period of time. The overall average of your interest rates over many years and many vehicle purchases will be extremely low. Look at it in the same way as investments or the stock market. Let’s focus on how affordable the payment is for you.
Rebuttal #4 } OUR INTEREST RATES ARE FIXED
If you are a well-established customer of the bank, you can sometimes get a line of credit anywhere from a 1/2 to 3 points over prime. The current Prime Rate is 7.2%, which means that the bank’s top-tier customers would only be able to get 7.7% - and that’s a variable rate. Our rate is 8.9%, but it’s fixed - so you can lock in and protect yourself from future increases. In the highly unlikely event that interest rates go down in the near future, you can re-finance your balance at a lower rate with no interest or administrative penalties – our loans are open. Let’s have a look at some different payment options.
Rebuttal #5 } THE RESIDUAL VALUE IS HIGHER
The interest rate on the lease is higher, however most of our Residual Values are also higher. This offsets the interest rate to keep payments lower. With a lease option, your future trade-in value at the end of the lease is guaranteed – there is no risk whatsoever. You also receive GAP protection in your lease agreement at NO CHARGE. I have 3 different lease options for you to consider.
Thank you for tuning in today.
Consider joining us for our 1-day New Age Negotiating and Closing Workshop or our many other Sales Consultant Professional Development seminars and workshops.
I’m Hector Bosotti with Wye Management.
