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SVTPerformance's Chain of Restaurants
Road Side Pub
N/A credit score.
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<blockquote data-quote="Black2010" data-source="post: 15570976" data-attributes="member: 126428"><p>Actually most of our profit come from subsidies, boost in origination on higher profit items (services and warranty for example) and End of Lease from those that Lease (business sector).</p><p></p><p>In the current market consumer lending is not all that profitable and is very risky due to losses and fraud unless you only deal with prime customers. With the fair lending act we now have to spoon feed consumers on how stupid it is to make min monthly payments which actually has reduced the amount of revolving lines that actually revolve (actually helpful legislation). My finance specifically is captive so we're more a tool for sales then considered a profit center all be it we do bring profit to the P&L. </p><p></p><p>Now AMEX, MC, VISA etc makes a fair chunk of money even from customers that don't revolve due to their fees (think paypal for us). Every-time you use your CC the place you just bought from gets charged a fee. Depending on volumes and negotiation power those fee's can be pretty high. Been years since I've even looked into those figures but they used to average in the 3% range. May not sound like much but take 3% of everything bought on a MC and you start to see the $$$.</p><p></p><p>For me specifically, I don't need a credit card but I do prefer to use other peoples money than my own. I.E. I charge nearly everything and then pay the bill in full every month. Cost me absolutely nothing since I don't revolve but I'm netting easily $500-$750 a year in cash rewards a year not to mention the added benefits of holding my money in other avenues. Let's also not forget about the consumer protection that comes with buying with a CC. Get something that isn't as described or non-functional and the company wont accept a return. Credit card company will charge back the company and give your money back. It's free insurance against your purchases.</p></blockquote><p></p>
[QUOTE="Black2010, post: 15570976, member: 126428"] Actually most of our profit come from subsidies, boost in origination on higher profit items (services and warranty for example) and End of Lease from those that Lease (business sector). In the current market consumer lending is not all that profitable and is very risky due to losses and fraud unless you only deal with prime customers. With the fair lending act we now have to spoon feed consumers on how stupid it is to make min monthly payments which actually has reduced the amount of revolving lines that actually revolve (actually helpful legislation). My finance specifically is captive so we're more a tool for sales then considered a profit center all be it we do bring profit to the P&L. Now AMEX, MC, VISA etc makes a fair chunk of money even from customers that don't revolve due to their fees (think paypal for us). Every-time you use your CC the place you just bought from gets charged a fee. Depending on volumes and negotiation power those fee's can be pretty high. Been years since I've even looked into those figures but they used to average in the 3% range. May not sound like much but take 3% of everything bought on a MC and you start to see the $$$. For me specifically, I don't need a credit card but I do prefer to use other peoples money than my own. I.E. I charge nearly everything and then pay the bill in full every month. Cost me absolutely nothing since I don't revolve but I'm netting easily $500-$750 a year in cash rewards a year not to mention the added benefits of holding my money in other avenues. Let's also not forget about the consumer protection that comes with buying with a CC. Get something that isn't as described or non-functional and the company wont accept a return. Credit card company will charge back the company and give your money back. It's free insurance against your purchases. [/QUOTE]
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SVTPerformance's Chain of Restaurants
Road Side Pub
N/A credit score.
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