Twofer Pricing Discounts

Has anyone ever tried relationship pricing on auto loans?

Say two siblings at about the same stage in life are in the market for minivans. Could they get a small break on the financing (50 or 100 bps, maybe) if they bought at the same time and used the same lender for financing?

Or what about parents looking to buy a car for their child ― if they decide to upgrade their own vehicle at the same time, might they get a discount on both financing packages?

I know pricing decisions have to be risk-based, but especially for captives, this seems like a viable tool for increasing both sales and financing volume.

Tags: discount, pricing, relationship, twofer

Replies to This Discussion

Permalink Reply by Frank Rauscher on June 28, 2011 at 3:25pm

Good idea.

Auto marketing is a wonderfully wide open opportunity to experiment with a range of activities to source the most business at the least net cost.

Of course, those with the best ideas would not want to share them with anyone else lest they educate their competition. Or, they become a vendor and sell the concepts. However, you may be Holy Grail in Auto Finance- a person with Free Ideas that Work!

Keep the ideas coming!

Permalink Reply by Marcie Belles on June 29, 2011 at 11:42am

Thanks, Frank. I know lenders don't want to give away too much of their secret sauce, but once a new program is launched, it doesn't take long before everyone hears about it. I'm just trying to spur some conversation, and I'd love to hear about experiences from lenders who have tried some of these ideas...

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