From Chapter Nine:
How Ratios and Percentages Dictate What You Can Buy
. . . Whether You Like It or Not
“A bank is a place where they lend you an umbrella in fair weather
and ask for it back when it begins to rain.“
—Robert Frost
Poet (1874–1963)
Poet (1874–1963)
"...the Hill’s first and most prevalent problem is the size of the loan necessary to finance the Crossover, along with the four thousand dollars of negative equity still due on the Mustang. Many lenders will only advance between 100% and 110% of any vehicle’s invoice, depending on the customer’s credit. A vehicle that invoices for $20,000, such as the Crossover, can only receive a maximum advance of $22,000 from the lender. If all it took were $22,000 worth of loan advance to deliver the car, Eric would have an easy deal. But there are very few easy deals in today’s market. Most times, applying for too large a vehicle loan (referred to as an “over-advance” in industry jargon) is enough to blow up a deal.
"This takes us back to square one and the reasons salespeople ask those lousy questions you hate so much. Eric, his business manager and ABC motors must deal with a late inning game changer, which may anger the Hills sufficiently enough to drive them to the competition.
Here is how the Hills Crossover deal finance structure lays out on paper..."
Here is how the Hills Crossover deal finance structure lays out on paper..."
