ShelbyDude Posted December 12, 2009 Report Share Posted December 12, 2009 I had a customer call needing to trade two vehicles and needing to LOWER their payments. Now in most cases the way most sales people would handle this is to either tell the customer they have to bring their vehicles to see them (this gives them a chance to try and sell them something no matter what) or they would just say, sorry I can't help you! Here is the customer's problem. They have a 2002 F-350 diesel with a 150k miles they owe $6k on and a 2004 Trail Blazer with a 100k miles they owe $12k on. The F-350 has a little equity. That would be worth about $9k trade-in value. The Trail Blazer is only worth about $6k at best which leaves them with at least $6k in negative equity. Between the two they owe $18,000 and their payments add up to $670 month. Their thinking was to trade both vehicles in, get an older 4X4 Ranger in the $5k - $6k range where they could end up with that free and clear and and get something else to replace the Trail Blazer with and finance that and lower their monthly payment. Well that isn't going to work because they only have $3k in equity on one and $6k negative equity on the other. I could get them out of these but not lower their payments which is what they need to accomplish. They took a huge hit in income from $85k year down to right now $35k year, Ouch! So as I'm talking with her on the phone I say, I imagine your husband would much rather keep is F350 instead of having to trade that for an older Ranger if he could? She says, oh yeah! Absolutely! But we need to lower our payments and we would need the equity out of that to use towards the negative equity on the Trail Blazer so we could lower our payments. She was looking at an older Jeep we have. A 2000. Well that's a problem there as well because the banks will only go 24 - 36 months on a vehicle that is 9 years old which a short term loan like that would mean a much higher payment. This won't help them. They would need something that is no older than 5 years to get at least 60 months financing to keep the payment lower. But something within 5 years old would mean more money. So then I ask her, do you have any credit unions by you? Yeah, but we're not a member. But I do have two banks we have a good relationship with. Great! Let me tell you the best way to do this to accomplish what you need to get done here. Which is lower your payments. The F350 will only bring $9k trade-in, BUT, that truck has a strong book value on it where a bank would loan much more on it. She says, yeah, Kelly Blue Book shows retail value is $19,000. There ya go! So here is what you need to do. Go to your bank and tell them you want to refinance your F350 for $18,000. She says, yeah but retail is $19k, but they won't loan retail. I said, don't worry about that. Just print the Kelly Blue Book Retail value off and bring that with you. If you have a good relationship with them and decent credit they will probably do it. IF they will do this, you get a new loan for $18k on the F350, then take the $12k equity you get from that after paying off the $6k loan you currently have on the F350, then take the $12k and pay off the Trail Blazer loan and you get the Trail Blazer free and clear. If they will go 5 years on the $18k loan your payment will only be about $365 month based on a 8% interest rate and that will lower your payments by about $305 a month!!! She says, I don't think they will do that. I say, just try it. You have nothing to lose! And if they won't do the full $18k on the F350 then try and refince it for $14k. They will go that much on it. Then take the extra cash from that and refinance the Trail Blazer and apply the equity to that by refincing a lot less. Even with two new loans like this you would still save $300 a month. She says, I can't believe you are telling me this. No salesman would do that. You are an honest person. She says she will try that. Great! Call me if there is a problem and then I'll try and see if there is something else I can figure out that would help you. This was Monday. She called me last night to let me know their bank gave them the new loan, they were able to lower their payments and save over $300 a month. Now they can keep their vehicles instead of trading them off for older vehicles just to lower their payments, which would have never happened anyway because of the negative equity they had. She says when they get back in better financial shape and are ready to buy something she will definitely be calling me! And meanwhile she will be telling any friends and family that are looking for a new vehicle to call me! So no sale here today, but I could have never helped them by lowering their payments enough to accomplish what their needs were. So better to help them by telling them how to get what they need done instead of wasting their time and trying to just get them into the dealership and they pressure them into settling for something even if it lowered their payments by just a little. They would not have been happy in the long run even if I could have managed to do that. So in the end they were able to get what they needed accomplished and are now over $300 a month less in debt! Who's your daddy?????? :happy feet: :happy feet: :happy feet: :happy feet: Link to comment Share on other sites More sharing options...
Michael Morris Posted December 12, 2009 Report Share Posted December 12, 2009 You did the only thing you could and NOW you have a customer for life!!! Way to think outside the box!!! Lowering a payment is HARD to do!!! MM Link to comment Share on other sites More sharing options...
svtkeith Posted December 12, 2009 Report Share Posted December 12, 2009 I had a customer call needing to trade two vehicles and needing to LOWER their payments. Now in most cases the way most sales people would handle this is to either tell the customer they have to bring their vehicles to see them (this gives them a chance to try and sell them something no matter what) or they would just say, sorry I can't help you! Here is the customer's problem. They have a 2002 F-350 diesel with a 150k miles they owe $6k on and a 2004 Trail Blazer with a 100k miles they owe $12k on. The F-350 has a little equity. That would be worth about $9k trade-in value. The Trail Blazer is only worth about $6k at best which leaves them with at least $6k in negative equity. Between the two they owe $18,000 and their payments add up to $670 month. Their thinking was to trade both vehicles in, get an older 4X4 Ranger in the $5k - $6k range where they could end up with that free and clear and and get something else to replace the Trail Blazer with and finance that and lower their monthly payment. Well that isn't going to work because they only have $3k in equity on one and $6k negative equity on the other. I could get them out of these but not lower their payments which is what they need to accomplish. They took a huge hit in income from $85k year down to right now $35k year, Ouch! So as I'm talking with her on the phone I say, I imagine your husband would much rather keep is F350 instead of having to trade that for an older Ranger if he could? She says, oh yeah! Absolutely! But we need to lower our payments and we would need the equity out of that to use towards the negative equity on the Trail Blazer so we could lower our payments. She was looking at an older Jeep we have. A 2000. Well that's a problem there as well because the banks will only go 24 - 36 months on a vehicle that is 9 years old which a short term loan like that would mean a much higher payment. This won't help them. They would need something that is no older than 5 years to get at least 60 months financing to keep the payment lower. But something within 5 years old would mean more money. So then I ask her, do you have any credit unions by you? Yeah, but we're not a member. But I do have two banks we have a good relationship with. Great! Let me tell you the best way to do this to accomplish what you need to get done here. Which is lower your payments. The F350 will only bring $9k trade-in, BUT, that truck has a strong book value on it where a bank would loan much more on it. She says, yeah, Kelly Blue Book shows retail value is $19,000. There ya go! So here is what you need to do. Go to your bank and tell them you want to refinance your F350 for $18,000. She says, yeah but retail is $19k, but they won't loan retail. I said, don't worry about that. Just print the Kelly Blue Book Retail value off and bring that with you. If you have a good relationship with them and decent credit they will probably do it. IF they will do this, you get a new loan for $18k on the F350, then take the $12k equity you get from that after paying off the $6k loan you currently have on the F350, then take the $12k and pay off the Trail Blazer loan and you get the Trail Blazer free and clear. If they will go 5 years on the $18k loan your payment will only be about $365 month based on a 8% interest rate and that will lower your payments by about $305 a month!!! She says, I don't think they will do that. I say, just try it. You have nothing to lose! And if they won't do the full $18k on the F350 then try and refince it for $14k. They will go that much on it. Then take the extra cash from that and refinance the Trail Blazer and apply the equity to that by refincing a lot less. Even with two new loans like this you would still save $300 a month. She says, I can't believe you are telling me this. No salesman would do that. You are an honest person. She says she will try that. Great! Call me if there is a problem and then I'll try and see if there is something else I can figure out that would help you. This was Monday. She called me last night to let me know their bank gave them the new loan, they were able to lower their payments and save over $300 a month. Now they can keep their vehicles instead of trading them off for older vehicles just to lower their payments, which would have never happened anyway because of the negative equity they had. She says when they get back in better financial shape and are ready to buy something she will definitely be calling me! And meanwhile she will be telling any friends and family that are looking for a new vehicle to call me! So no sale here today, but I could have never helped them by lowering their payments enough to accomplish what their needs were. So better to help them by telling them how to get what they need done instead of wasting their time and trying to just get them into the dealership and they pressure them into settling for something even if it lowered their payments by just a little. They would not have been happy in the long run even if I could have managed to do that. So in the end they were able to get what they needed accomplished and are now over $300 a month less in debt! Who's your daddy?????? :happy feet: :happy feet: :happy feet: :happy feet: Way da go SD...Bet it makes you feel good don't it ? And it should the prob today is nobody cares but you showed that you do and you will repaid by these people...Again good form bud. 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BAD SNAKE Posted December 12, 2009 Report Share Posted December 12, 2009 Great story Shelby Dude! Just think of the referrals. Referrals are a company's bread and butter. Link to comment Share on other sites More sharing options...
Grabber Posted December 12, 2009 Report Share Posted December 12, 2009 John, My hat is off to you for taking the time and effort to help this couple. With these economic times.....$300 a month is a huge deal. Link to comment Share on other sites More sharing options...
dh777 Posted December 12, 2009 Report Share Posted December 12, 2009 good job! Link to comment Share on other sites More sharing options...
ShelbyDude Posted December 12, 2009 Author Report Share Posted December 12, 2009 I use to do a lot of creative finance with real estate, buying businesses and I was really good at it. This was just another way to use a little of that knowledge to help someone else in need. I am really excited this worked out for them. Link to comment Share on other sites More sharing options...
Slabo Posted December 12, 2009 Report Share Posted December 12, 2009 That was a real nice thing you did for these folks SD. They needed real help and happened to find the right person. This type of honest effort tends to payback in multiples. Great to read about this time of year. Have a Merry Christmas! Link to comment Share on other sites More sharing options...
Stalwart Posted December 12, 2009 Report Share Posted December 12, 2009 Proper long term thinking, that is REAL customer service. I agree, you have a customer for life, or you would if that was me you helped. Link to comment Share on other sites More sharing options...
SGT/SC#0471 Posted December 12, 2009 Report Share Posted December 12, 2009 Upside down in your trade... These folks will be back or send you some business...thanks for taking the high road it makes the world a better place... Link to comment Share on other sites More sharing options...
Sherri Leicht Posted December 12, 2009 Report Share Posted December 12, 2009 Way to go SD! The world was just made a nicer place because of this gesture Link to comment Share on other sites More sharing options...
idrathergolf Posted December 12, 2009 Report Share Posted December 12, 2009 Kudos to you. That story makes me want to buy a car from you. Link to comment Share on other sites More sharing options...
mustang crazy Posted December 12, 2009 Report Share Posted December 12, 2009 Kudos to you. That story makes me want to buy a car from you. Now that the SD I remembered goes extra mile,always full of information and facts. Great make you a better person to help someone out.You will get rewarded so way Merry Christmas!!!! Link to comment Share on other sites More sharing options...
FordRocks1 Posted December 12, 2009 Report Share Posted December 12, 2009 Good job!!! Link to comment Share on other sites More sharing options...
SVT NAJA Posted December 12, 2009 Report Share Posted December 12, 2009 Shelby... Dude of the Year!!! Link to comment Share on other sites More sharing options...
Lucky 2 Posted December 13, 2009 Report Share Posted December 13, 2009 Well Done, Dude ! Link to comment Share on other sites More sharing options...
springer Posted December 13, 2009 Report Share Posted December 13, 2009 Way to go Dude. Great story and a very good ending. We need more sales people with your skills. Link to comment Share on other sites More sharing options...
Matts Posted December 13, 2009 Report Share Posted December 13, 2009 That's one for the record books. You never hear about these stories, just the ones about how they got screwed over. Be proud because I would love to have someone like you here locally to buy from. Link to comment Share on other sites More sharing options...
svttim Posted December 13, 2009 Report Share Posted December 13, 2009 Nice job SD, Not only will it pay off in the end, I bet you feel great helping someone out! Link to comment Share on other sites More sharing options...
NordicShelby Posted December 13, 2009 Report Share Posted December 13, 2009 I got the warm fuzzies reading this story. Honesty is always the best policy. Link to comment Share on other sites More sharing options...
07SGT4578 Posted December 13, 2009 Report Share Posted December 13, 2009 Kudos SD. Wow, I think we have the only human auto salespeople on the planet here in our family. Good people here. Link to comment Share on other sites More sharing options...
Ackman70 Posted December 13, 2009 Report Share Posted December 13, 2009 Great job! There is hope for the human race! Link to comment Share on other sites More sharing options...
Secondo Posted December 13, 2009 Report Share Posted December 13, 2009 You da man Shelbydude! Link to comment Share on other sites More sharing options...
Andrew DeSpirito Posted December 13, 2009 Report Share Posted December 13, 2009 You're an awesome person, John. We need more salespeople like you in the auto industry. Guys like you and Michael Morris are truly shining lights in a very dark world!!! Now if only more Ford salespeople could figure this out...we'd take even more business from the imports! Link to comment Share on other sites More sharing options...
Jer Posted December 13, 2009 Report Share Posted December 13, 2009 Wow... GREAT story... NICE WORK. Jer Link to comment Share on other sites More sharing options...
stump_breaker Posted December 14, 2009 Report Share Posted December 14, 2009 I guess lowering their monthly was more important than the total amount they will be paying for a 2002 truck. I sure hope they didn't buy it new in 2002. By the time they're through that will be a 70,000 truck. Hope it has the 7.3.... Link to comment Share on other sites More sharing options...
ShelbyDude Posted December 14, 2009 Author Report Share Posted December 14, 2009 I guess lowering their monthly was more important than the total amount they will be paying for a 2002 truck. I sure hope they didn't buy it new in 2002. By the time they're through that will be a 70,000 truck. Hope it has the 7.3.... They bought it used. They put a good chunk down on it when they bought it. It does have the 7.3L Bottom line is they are on the hook for $18k between two vehicles and by refinancing they were able to cut their payments in half. They will pay on this for about 2 - 3 years longer but if they couldn't get the payments lowered they would not be able to make the $670 payments they had. This made it so they could lower the payment to something they could afford, allows them to have two vehicles they need, and they won't damage their credit. This was their best option for what they needed to do. Link to comment Share on other sites More sharing options...
stump_breaker Posted December 14, 2009 Report Share Posted December 14, 2009 They bought it used. They put a good chunk down on it when they bought it. It does have the 7.3L Bottom line is they are on the hook for $18k between two vehicles and by refinancing they were able to cut their payments in half. They will pay on this for about 2 - 3 years longer but if they couldn't get the payments lowered they would not be able to make the $670 payments they had. This made it so they could lower the payment to something they could afford, allows them to have two vehicles they need, and they won't damage their credit. This was their best option for what they needed to do. I wasn't busting your balls SD. You didn't take advantage when you could have easily. That is admirable. Link to comment Share on other sites More sharing options...
ShelbyDude Posted December 14, 2009 Author Report Share Posted December 14, 2009 I wasn't busting your balls SD. You didn't take advantage when you could have easily. That is admirable. I know you weren't Link to comment Share on other sites More sharing options...
prospector500 Posted December 15, 2009 Report Share Posted December 15, 2009 I had a customer call needing to trade two vehicles and needing to LOWER their payments. Now in most cases the way most sales people would handle this is to either tell the customer they have to bring their vehicles to see them (this gives them a chance to try and sell them something no matter what) or they would just say, sorry I can't help you! Here is the customer's problem. They have a 2002 F-350 diesel with a 150k miles they owe $6k on and a 2004 Trail Blazer with a 100k miles they owe $12k on. The F-350 has a little equity. That would be worth about $9k trade-in value. The Trail Blazer is only worth about $6k at best which leaves them with at least $6k in negative equity. Between the two they owe $18,000 and their payments add up to $670 month. Their thinking was to trade both vehicles in, get an older 4X4 Ranger in the $5k - $6k range where they could end up with that free and clear and and get something else to replace the Trail Blazer with and finance that and lower their monthly payment. Well that isn't going to work because they only have $3k in equity on one and $6k negative equity on the other. I could get them out of these but not lower their payments which is what they need to accomplish. They took a huge hit in income from $85k year down to right now $35k year, Ouch! So as I'm talking with her on the phone I say, I imagine your husband would much rather keep is F350 instead of having to trade that for an older Ranger if he could? She says, oh yeah! Absolutely! But we need to lower our payments and we would need the equity out of that to use towards the negative equity on the Trail Blazer so we could lower our payments. She was looking at an older Jeep we have. A 2000. Well that's a problem there as well because the banks will only go 24 - 36 months on a vehicle that is 9 years old which a short term loan like that would mean a much higher payment. This won't help them. They would need something that is no older than 5 years to get at least 60 months financing to keep the payment lower. But something within 5 years old would mean more money. So then I ask her, do you have any credit unions by you? Yeah, but we're not a member. But I do have two banks we have a good relationship with. Great! Let me tell you the best way to do this to accomplish what you need to get done here. Which is lower your payments. The F350 will only bring $9k trade-in, BUT, that truck has a strong book value on it where a bank would loan much more on it. She says, yeah, Kelly Blue Book shows retail value is $19,000. There ya go! So here is what you need to do. Go to your bank and tell them you want to refinance your F350 for $18,000. She says, yeah but retail is $19k, but they won't loan retail. I said, don't worry about that. Just print the Kelly Blue Book Retail value off and bring that with you. If you have a good relationship with them and decent credit they will probably do it. IF they will do this, you get a new loan for $18k on the F350, then take the $12k equity you get from that after paying off the $6k loan you currently have on the F350, then take the $12k and pay off the Trail Blazer loan and you get the Trail Blazer free and clear. If they will go 5 years on the $18k loan your payment will only be about $365 month based on a 8% interest rate and that will lower your payments by about $305 a month!!! She says, I don't think they will do that. I say, just try it. You have nothing to lose! And if they won't do the full $18k on the F350 then try and refince it for $14k. They will go that much on it. Then take the extra cash from that and refinance the Trail Blazer and apply the equity to that by refincing a lot less. Even with two new loans like this you would still save $300 a month. She says, I can't believe you are telling me this. No salesman would do that. You are an honest person. She says she will try that. Great! Call me if there is a problem and then I'll try and see if there is something else I can figure out that would help you. This was Monday. She called me last night to let me know their bank gave them the new loan, they were able to lower their payments and save over $300 a month. Now they can keep their vehicles instead of trading them off for older vehicles just to lower their payments, which would have never happened anyway because of the negative equity they had. She says when they get back in better financial shape and are ready to buy something she will definitely be calling me! And meanwhile she will be telling any friends and family that are looking for a new vehicle to call me! So no sale here today, but I could have never helped them by lowering their payments enough to accomplish what their needs were. So better to help them by telling them how to get what they need done instead of wasting their time and trying to just get them into the dealership and they pressure them into settling for something even if it lowered their payments by just a little. They would not have been happy in the long run even if I could have managed to do that. So in the end they were able to get what they needed accomplished and are now over $300 a month less in debt! Who's your daddy?????? :happy feet: :happy feet: :happy feet: :happy feet: Link to comment Share on other sites More sharing options...
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