By Steve Lane
Some dealers are collecting receivables as if they were still in the horse and buggy era. But today we live in a “tweet and text” world.
Failure to collect vehicle receivables quickly leaves many dealers in the frustrating and uncomfortable position of chasing cash every day.
Dealers need to collect at Internet speed. Here’s how:
- Eliminate delayed or rejected contracts in transit. They can create a cash flow problem almost overnight.
- Your first step is to get the contract right the first time.
- Typically, contracts are rejected because of simple mistakes such as failure to provide signatures, a copy of the driver’s license, proof of insurance, or proof of income.
- Make sure to include all the necessary information—correctly—and then, use e-contracting software to send the contract electronically. You can be paid in 24 hours or less.
E-contracting isn’t new. But it’s much improved since it first came to market years ago. It’s been perfected and modified and enhanced to the point that the dealers using it have a great advantage. E-contracting can fix your cash flow problem.
Instructor Steve Lane teaches Financial Management in week 1 of 6 in the NADA Academy program. Reach him at [email protected] or visit NADA Academy to download the schedule and applications for all programs.
To find out how your dealership‘s compensation stacks up to the competition, participate in the 2013 Dealership Workforce Study. Participation is open only to NADA and ATD members, and the participation window closes April 30. Go to www.nadaworkforcestudy.com now.