December 4, 2013

I read an interesting article by Joseph Lichterman in Automotive News a few weeks ago on the success of Vaden Automotive Group in offering a bi-weekly payment option for its customers. Vaden has eight stores in southeastern Georgia and South Carolina.

Prior to the bi-weekly payment program, Vaden was averaging about $1,200 profit per vehicle sold. In mid-October, Vaden reported an average F&I revenue per vehicle retailed of $1,519. The extended service contract rate was 68%.

Vaden Automotive sells about 150 bi-weekly plans a month and that represents about 28% of its car loans. It could be high expectations but the group is reaching for a total of 300 biweekly plans a month by the end of the first quarter next year.

Information on the biweekly finance plan can be found here.