By Matt Woods South Regional Manager
Just because you’ve always done it that way doesn’t mean it’s not incredibly stupid, or illegal.
Not long ago, I was talking to an industry colleague about his recent car purchase. I had just finished giving a conference presentation on compliance, during which I discussed the illegal practice of discounting interest rate when someone buys F&I products. My colleague told me that when he bought his car the business manager showed him two retail installment contracts: one without a VSC, and one with a VSC included and a lower interest rate. He said he questioned the business manager on whether it was legal to do so, and the response was, “We’ve always done this for our customers.”
And now you understand the title of this post. If someone before you did it that way, find out why. And if your method is driven only by profits, your process may not be compliant with state and federal laws.