We recently analyzed second quarter sales data across our dealer client base to compare front end sales gross profit of finance deals with cash down versus no cash down payment and the results are interesting.
What we found is that cash down yields higher front-end gross profit! In the most dramatic case, one of our Nissan clients saw a $1,500 swing in their front-end gross profit when receiving a cash down payment on a deal. This far outweighed any decrease in the finance reserve in the F&I office and of course front-end grosses can’t get charged back!
Train your sales team to ask for cash down payments!