Sell Auto Note Compared to Keeping The Auto
Note
This is an example
Selling
“The Note” – After 90
Days of Payments
A.
Dealer cost of vehicle
$3,000.00
B.
Selling Price of vehicle
$6,000.00
C.
Down
Payment received
$1,000.00
Finance remaining balance at 24% for 27
months
D.
Collect 3 payments of $241.00 each
$
720.00
E.
Principle balance after 90 days $4,697.00
F.
Advance at 80% of principal balance $3,758.00
G.
Total
Cash collected as a result of
selling
“The Note” (C+D+F)
$5,478.00
H.
Subtract cost of vehicle $3,000.00
I.
TOTAL PROFIT AFTER 90 DAYS
(G-H)
$2,478.00
Keeping
“The
Note”
A.
Dealer cost of vehicle
$3,000.00
B.
Selling price of vehicle $6,000.00
C.
Down
payment received $1,000.00
D.
Collect 12 payments of $241.00 each $2,892.00
E.
Total
cash collected after 12 months $3,892.00
F.
Subtract cost of vehicle $3,000.00
G.
TOTAL PROFIT AFTER 12
MONTHS
$
892.00
The above examples are for illustrative purpose
only.
Actual sales price and total profit will vary from this
example.
At
a time when it is becoming more and more difficult to secure
credit facilities, selling your contracts becomes a viable
source of raising capital. In the above example many dealers
would have accepted $5,478 in cash for a vehicle that had a
$6,000 retail price and a $3000 cost. If you are one of
those dealers who would have accepted a $2,478 gross profit,
then you need to contact Financial Solutions to turn your
contracts into immediate profits.
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