What are the job duties for auto finance people? First, you will work with auto sales people who will bring you their customers into the auto finance office. There, you will run their credit application and submit it to companies like BMW finance. After the customer is accepted, you will walk them through their contract signing, the interest rate, and terms they are receiving and, help them with other items like adding their new vehicle to their insurance. You will also have the opportunity in your auto finance job to entice the customer into buying additional options such as service contracts and GAP insurance.
Okay, that’s pretty much covers most of the duties, but how do I make any money if I get an auto finance job? Here are secrets some potential auto customers don’t know. Beyond the salary any dealer will pay you in your auto finance job, you have other ways to make money. After you run a customer’s credit application say with BMW auto finance, you will hear from BMW finance on what is called the dealer “buy rate.” Say the buy rate you get is 7%. Here’s what some people don’t know and it is called making back end money. Instead of charging the customer 7% on their auto finance contract, you can “bump” the interest rate. So, here’s where your communication and selling skills come into play. Instead of the 7% BMW auto finance offered the customer, you can tell him his interest rate for his new auto is 9%, effectively 2 points higher than the offered 7%. The money the dealer receives on this “back end” money is called finance reserve money and in the auto finance industry, most dealers will pay you in your auto finance job anywhere from 10 to 15% of that back end money.
Is that it you ask? No, there is still more money to be made in the auto finance job industry. We talked about service contracts and GAP insurance. GAP insurance or guaranteed auto protection insurance, really sells itself these days. What is GAP insurance? Most insurance companies will not pay their clients 100% of what their vehicle is worth if it is in an accident and is considered “totaled.” As autos depreciate, insurance companies may offer $10,000 on a client’s vehicle after it is totaled but the client still owes $15,000 to BMW finance! Where does the client come up with the extra $5,000 to pay the vehicle off? That’s where GAP insurance comes in. GAP insurance will pay the customer the difference between what the insurance company offers them and what is still owed on the vehicle. If you sell a customer GAP insurance in your auto finance job, say you charge the customer $600 for GAP insurance, but the dealer cost is only $200. The dealer will make an extra $400 and once again, as the auto finance person, you can receive back end monies anywhere from 10 to 15%.
Let’s talk service contracts! These days more and more manufacturer’s are going back to the standard warranty of 3 years or 36,000 miles, whichever comes first. After that, the auto customer is pretty much on his own for wear and tear or broken mechanisms within their automobile. With a service contract, a customer can extend the manufacturer’s warranty, sometimes up to as much as 100,000 miles. There are many service contracts you can sell in your auto finance job from simple maintenance contracts that cover lube-oil-filters to high-end service contracts that offer bumper-to-bumper coverage. Again, when you sell that service contract in your auto finance job, say it’s a BMW auto finance service contract, the dealer’s cost might be $600, but you can charge as much as $1200 for that service contract and make a 10 to 15% commission on the extra $600 the dealer earns.
Sound interesting? Your career in the auto finance job industry is not only exciting but gives you the opportunity to use your awesome personality to sell higher interest rates, GAP insurance and, service contracts via commissions. Now that you’ve made up your mind that an auto finance job is right for you, where do you find the best ones?
BankingandFinanceCrossing.com, a division of EmploymentCrossing has done the work for you! FinancialServicesCrossing searches auto finance job openings from thousands of websites and puts them into one easily searchable database. This database can be searched using keywords to get the auto finance job that meets your needs. To get that great auto finance job, you can search by area, salary scale and if an employer offers relocation dollars—if you are willing to relocate.
Beyond this awesome, searchable database, at FinancialServicesCrossing, you will find Job Profile Videos where auto finance job experts offer advice on the best way to find an auto finance job and the skills you’ll need to possess. Along with these videos, FinancialServicesCrossing offers many articles written by auto finance experts to help you find the best fit when seeking the auto finance job of your dreams.
If you’re ready to break into the auto finance job industry and want that great finance job, whether it is for BMW finance or another manufacturer, visit FinancialServicesCrossing today and find out how you too can make money in the auto finance job industry!
