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We (our Note Car Dealers Network) purchase vehicles at wholesale prices, refurbish the vehicles and sell them at retail.
We make a customary 80% mark up profit on nearly every car we sell. It's usually a 3 month turnaround time from buying a car at wholesale from a dealers auction to getting it sold off the car lot.
This cycle happens roughly 4 times per year allowing us to make a gross profit of over 300% per year on our money.
If we had it our way, everyone would just pay cash for their cars instead of having to finance them through us.
Since the average customer usually does not have the full purchase price funds available, we finance the vehicle at a 21.0% APR interest rate.
We qualify each customer to insure the success of the loan. We also place a gps tracking device on the vehicle so that we can locate the vehicle in case we need to repossess it.
Federal and state laws require certain documents be used when we sell a car. A sale begins with a "Bill of Sale" / "Buyer's Order" which is the contract selling the car. When the dealer finances the car the customer also signs a "Retail Install Contract".
This is the promissory note and document which sets out the terms of the purchase of the car.
The bottom of the second page of this document contains the assignment form. When you buy the note this document is assigned to you and you own the car note (this means you own the car).
Finally we also file UCC notice with the appropriate governmental offices and a copy of that notice is provided to you by these offices.
We continue to collect the note on your behalf and remit the payments to you.
Since we replace delinquent notes you buy it is very important that our customer is going to be a good customer. Accordingly we qualify the customer using:
- In-depth application information. This includes prior history of employment, residences, and other pertinent information. We also require 6 or more references that are called and verified.
- We then run a computer check on the customer which will determine his or her residence, utility payments, other persons living at the address, all licenses held by the customer.
- Visual inspections and copies of driver's license and proof of residence are required.
- We then evaluate the ability of the customer to make his payments, both the car note payments and the insurance.
Next we only sell vehicles which will last the length of the car note. We sell those cars which have proven motors and transmissions.
Additionally we provide mechanical services to fix the cars we sell if the customer experiences problems. We are often able to sell a warranty with the car which covers most mechanical difficulties. Our goal is to keep the customer
paying on the note, and it is just good business to help the customer with his vehicle.
Most complaints with "buy her pay here" note lots are that they sell cars that break down shortly after the purchase. Our cars go through a complete inspection making sure that are mechanically sound when they leave the lot.
Still, some customers default on their notes. This can be for a number of reasons ranging from loss of employment to unforeseen medical expenses.
Depending on the payment record of the customer we may make different arrangements insuring that the note is paid. But our vehicles are equipped with a GPS tracking device which will pinpoint the location of the vehicle in case we must repossess it.
Still, we replace any non-paying note with one that it current and paying.
We hold back enough (25%) notes to replace any note which becomes delinquent. Then we repossess the vehicle thus securing the delinquent note, refurbish it and resell it on another note.
Finally, we are proactive in collecting note payments. We call the customer two days before his payment is due to remind him. If customer does not make his payment he is repeatedly contacted until the payment is made.
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