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.