Car Payment Checker
| Car Payment Checker |
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The Payment Checker is a document that should be produced with the results from the “Cheat Sheet”. This worksheet will provide the customer with the ability to check the dealer’s “penciled” payments during the negotiation. In other words, it will eliminate the dealer’s “Leg” in the payment.
We recommend the customer enter their target price based on the Net-Cost from the “Cheat Sheet” into the “Selling Price” field on the Payment Checker. (This Net Cost is the invoice cost less Hold-Back, market support and rebates.)
In this example we are entering Net-Cost plus $300 Profit for the dealer. (Keep in mind, you must decide what to offer the dealer; we are only using $300 for illustration purposes.)
 Enter your offer into the Payment Checker. 
The Payment Checker will then produce payments with a $2000 range from your offer. (The range is $1000 over your offer and $1000 below.) It will also produce a two Point range in interest rate (or Money-Factor on a lease).
 Example of how to use the Payment Checker.
In this example the dealer agrees to sell the car for $29,194. From the “Cheat Sheet” the customer determines that the dealer is making $300 in "Front-End" profit from the net-cost.
However the dealership’s “Pencil” claims the payment to be $576 with a 6.5% interest rate.
The Payment Checker reveals that the payment should be $555 per month. Using this worksheet, the customer discovers that the dealer has included a $20 “leg” by increasing the interest rate to 6.75%.
 Depending on the price of the vehicle, it is good idea to print two to three payment checkers before you begin the dealer negotiation. Since the "Payment Checker" worksheet has a two thousand dollar range, enter several "Selling Prices" to give yourself a broad range of prices. |
