Why should dealers who already take credit cards consider adding a financing program?
Andrea Swiney: The more payment options dealers can give to customers, the more likely they are to find one that works to close the sale. Not all customers have credit cards, and even if they do, they may not have the available credit to make a large purchase. They may also not have terms as favorable as a finance program. With financing, dealers can offer interest-free or payment-free periods that customers typically can’t get on credit cards. WQP: What are some of the main differences between a financing program and consumer credit cards? Swiney: Having financing available allows dealers to sell on payments. Dealers can’t know what the monthly payment will be for a customer using a credit card; however, they will know all the terms for the financing program and can accurately quote a payment. It is much easier for customers to commit to $75 per month than it is to commit to a $3,500 expenditure. In addition, most major credit card companies have recently increased their minimum payme
