The Gift that Keeps Giving/ Keep Tax Season Profit Alive Year-Round
by Kelvin Tse | PayNearMe
With each new year comes another tax season full of potential new business and profits. This is the only time of the year that you can count on customers to walk onto your lot with money in their pockets and the means to finally get that vehicle that they’ve been eying. It’s also your best chance to capture a decent down payment and move a significant amount of inventory. While all of this makes it very easy to get excited about this busy season, you can’t afford to let the short term gains of large down payments distract you from the bigger picture. Attracting new business and capturing that large down payment is only the beginning. The true key to getting the most from the tax season is to implement a plan that enables you to continue collecting payments throughout the year.
One of the best ways to maintain continuous payments is to apply strong underwriting practices before the deal has even been made. It’s easy to get fired up during tax season and do everything you can to make a deal happen. However, sometimes this means that customers will end up driving off your lot in vehicles that they can’t really afford. You may have gotten an excellent down payment on that deal, but if the customer can’t sustain their scheduled payments, then that big down payment could quite possibly be the last money you see from them.
Perhaps one of the most effective ways to improve your post-tax season payment collection activity is to simply provide customers with convenient payment options. While many of your customers may prefer to make their payments in person at your dealership, others may find that to be a hassle. That’s why it’s absolutely critical to provide as many options as possible. There are always plenty of excuses to miss a payment. A lack of convenient payment options should never be one of them.
One of the more useful options out there is the ability to accept payments online using debit or credit cards. For your customers, this is a fast, easy and familiar payment alternative. At the same time, accepting online payments helps you minimize the complications of cash reconciliations and gives your collectors a way to quickly enforce promises to pay. What’s more, access to systems like AutoStar PortalPay makes accepting electronic payments online easier than ever before.
With that said, many of your customers will still prefer to pay in cash. This doesn’t necessarily have to prevent you from taking advantage of modern technology. PayNearMe’s recent integration with AutoStar means that you can now accept those cash payments and still take advantage of the benefits of electronic payments. In case you aren’t already familiar with PayNearMe, our service lets you turn neighborhood 7-Eleven and ACE Cash Express locations into 24/7 cash payment locations. All payments are posted in real-time and funds are deposited automatically into your bank account. This instantly adds over 8,600 cash registers to your business and allows you to accept cash payments from customers at any time, day or night, regardless of their location.
The bottom line is that letting your customers pay anywhere, at any time, puts you in a position to dramatically improve your ability to collect on those tax season deals. This keeps the tax season profits flowing year-round. Tax season is always great for business, but in order to truly maximize your opportunities you need to make it a priority to look beyond the short term gains and set yourself up to continue to profit in the months and years ahead.
PayNearMe is the cash transaction network that enables consumers to pay rent, transfer money, repay loans, buy tickets, make online purchases and much more with cash. Consumers can conveniently make payments 24/7 in their own neighborhood in less than 60 seconds at one of the 8,600 participating 7-Eleven and ACE Cash Express stores across the United States. For more information, please visit www.paynearme.com.