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~ A Moment of
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FAQ’s - Frequently Asked Questions
What is a Wholesale Auto Auction ?
Good question. A wholesale auto auction is exactly what is
sounds like. The key factor to
understand, is that wholesale auctions are open ONLY to licensed automobile
dealers. Members of the general public,
that is anyone who does not hold a license to sell motor vehicles, are not
allowed entry. This rule prohibiting
entry into the wholesale auto auctions is not a law, but a business rule
imposed by the private companies that operate the wholesales auto
auctions. This rule is a benefit for the
automobile dealers as an industry.
So, how does
this help you ? The alternative to
buying a car from North Florida Motosports, LLC is to buy a car from either a
private citizen, or another licensed automobile dealer, or possibly from an
un-licensed automobile dealer.
Buying from a
private citizen has it’s drawbacks.
Namely, private citizens are always selling their cars a full retail
prices. Wouldn’t you sell your car at
full retail when you decide to sell it ?
Buying a car from
another licensed dealer is different from North Florida Motosports, LLC in that
other licensed dealers are also going to sell their cars at full retail
prices. You can only even come close to
getting a great deal from a licensed automobile dealer if you come to North
Florida Motosports, LLC.
Buying a car
from an unlicensed dealer is a recipe for disaster for the consumer. North Florida Motosports, LLC not only
recommend against this, but requests that you notify us of any information you
may have regarding persons operating as a automobile dealer without a license.
Why can’t I just go to the Wholesale Auto
Auction and buy my own car ?
You can, you just first need to obtain
a State issued Motor vehicle dealers license.
Not really a worthwhile venture if you just want to buy one car or truck
at a great price. However, you can still
get that great price from North Florida Motosports, LLC.
What
kind of fees and costs do license dealers have to maintain to be considered licensed ?
Administrative licensing fees, bond
fees, insurance fees, accounting fees, legal fees, corporate fees, banking
fees, banking licensing fees, property lease fees, utility fees,
transportations fees, professional association fees, mandated training fees,
auction buy fees, as well as supplies, forms and operating equipment purchases.
I
want to be a licensed auto dealer, what do I do ?
Contact the DHSMV and request an
application. North Florida Motosports,
LLC suggests you consult with your attorney before embarking on any business
adventure.
Is this really a good deal through
It doesn’t get any better than
this. Like we have said, if you find a
better deal, let us know. You will want
to tell your friends, and you’ll be back to purchase your next car from North
Florida Motosports, LLC.
What do
I do if I have to sell my car before I get another used car ?
If your current financial
situation mandates that you sell your present car before you get another car,
North Florida Motosports, LLC will assist you with keeping the down time
between cars to a minimum. We will also
take your car on trade-in, affording you an opportunity to capture the sales
tax savings on the trade-in value of your car.
While we currently don’t rent cars, we can assist you with the process
of placing advertisements in different forums in your area, as well as some
resources in obtaining future financing for your next car purchase.
Does
YES.
Yes, we finance cars we sell. We
call it Buy–Here–Pay–Here. On our
eligible vehicle purchases, we offer competitive finance terms with ANY bank or
credit union. Complete the attached
Finance Application and send it to us via email or facsimile, and we will
respond quicker than the bank with your loan approval. Like we have said, if you find a better
deal, let us know.
Download “Finance
Application” .
What is BUY-HERE-PAY-HERE
?
Here is some basic information for you
to read and digest about financing your car purchase from a car dealer. We hope it helps point you in the right
direction. It is our belief you will not
get this information from anyone in the automotive industry.
TYPICAL OTHER DEALERS BHPH TERMS:
In-House
financing, that is, where you finance the car from the dealer who sells it to
you, is called Buy Here Pay Here – BHPH.
BHPH financing
is a high risk loan agreement for the lender, in this scenario, the dealer is
the lender.
Dealers who
offer BHPH financing jack the price of the car to way beyond full retail to
offset the high risk of the BHPH finance profile. Plus, they charge a typical dealer fee of
$699 and a Finance Fee of $399, not to mention they mandate the purchase of an
extended warranty contract, which typically ranges from $800 to $2,100. Sure, they add those extra costs to the loan
amount so the down payment and monthly payment amount remain the same. What changes is the number of months in the
term of the loan agreement. Of course,
most BHPH customers forget to even consider the number of months in the loan
term. On top of that, they will try to
sell GAP insurance, disability insurance, and a whole host of extra menu
selling items.
BHPH dealers
also charge and industry average of 24% to 28% APR Interest Rate. Florida law caps the interest rate at 29%
percent APR., Most finance agreements
from BHPH dealers have a pre-payment penalty clause, so that if you decide to
pay off the loan early you will incur an additional penalty to pay. Remember, the BHPH dealer is trying to earn
the steep interest from the finance agreement.
Additionally, the BHPH dealer will often sell the finance agreement
within 60 days of the car purchase, so the higher the dollar amount of the
finance agreement, the more the finance agreement can be sold for.
BHPH dealers
do not advertise cars at a wholesale prices.
In fact, most BHPH dealers do not even advertise their asking price, so,
when they discover the buyer is willing to sign a BHPH finance agreement, they
jack the purchase price up even higher.
Yes, there are laws prohibiting this, but talk with your attorney about
the reality of bringing an civil action against a BHPH dealer for this, as it
is an uphill legal challenge.
Many BHPH
dealers actually plan their sale and finance agreements on a future
default. This means they can repossess
your car and resell it again, and again, and again. I call this a predatory lending practice, but
hey, it’s just my opinion. You have
probably seen this same scenario play out in the national media with respect to
home loans in the past 24 months. Why do
you think our home loan mortgage industry is so upside down right now ?
Your best bet
is to find a BHPH dealer with reasonable terms and conditions, who will help
you not only purchase and finance your vehicle, but help you get the loan
satisfied and come back in a better financial position in the future. Who is going to do this ? North Florida Motosports, LLC will help you.
FINANCE TERMS AT
That being
said, here is what we offer at North Florida Motosports, LLC., We believe you will not find these terms
anywhere in the BHPH market place. We
also believe you will not find any other BHPH dealer to tell you this inside
information on how the BHPH industry really works.
First, the
Interest Rate at North Florida Motosports, LLC is 12% APR. This rate is lower than any credit union or
commercial bank on the purchase of comparable year model unit which fits the
BHPH profile.
North Florida
Motosports, LLC has NO dealer fees, NO finance fees, NO junk fees, and NO other
fees whatsoever. We offer simple
interest finance contracts with NO prepayment penalties. The price of the car is the same, cash or
credit. Typically, we require a 50%
down payment along the completion of a Finance Agreement. The finance agreement primarily documents
your source of income that shows you are be able to pay for the monthly loan
that you agree to pay. We do not want
you entering into a finance agreement that is over your head that we both know
you can not keep and maintain.
Our finance
and purchase terms are by design reasonable, and ensure that we do not engage
in predatory lending practices. Our
finance agreements show a very, very low to non-existent default rate. We do not want to repossess your car. We do not want to re-sell your car. We truly hope you can succeed with a purchase
and finance repayment schedule, pay it off early, and find yourself coming back
next year in a better financial situation to ask us to help you find a brand
new car to purchase.
Let us know if you this information is
useful. Again, we believe you will not
find this information from other BHPH dealers.
It’s kind of the information the industry does not want you to know.
Where did you
hear it first ? You heard it at
Complete the
attached Finance Application and email or fax it back to us. We look forward to meeting you soon.
Download “Finance Application” here.
Do I really have to pay tax on my new car purchase ?
This one is the question that always
surprises us at North Florida Motosports, LLC.
As licensed automobile dealers, we are also registered tax collectors
with the (FDOR) Florida Department of Revenue.
Yes, you will have to pay state sales tax to the State of
However, there
are exceptions to this law. If you
qualify for one of these exceptions, then as licensed tax collectors for the
FDOR, North Florida Motosports, LLC will not have to collect sale tax when you
purchase your car. Here is a list of
some of the examples in which you do not have to pay tax to North Florida
Motosports, LLC when you purchase your car:
§
You provide a current “Florida Annual Resale Certificate for
Sales Tax.”
§
You purchase your vehicle as a tax exempt entity, such as a
registered religious institution, a government agency, or a list of other types
of tax exempt entities that qualify under the law
§
You take delivery of your vehicle purchase OUTSIDE of the
State of
§
You sign an affidavit attesting that you will register your
automobile purchase within (45) forty fives days of purchase in a State that
has no requirement for sales tax on automobile purchases. For example: The state of
Complete
information can be obtained from FDOR.
So,
how does
This, is simply based upon our business
structure that minimizes overhead while maximizing efficiency. We avoid the traditional unscrupulous sales
tactics and provide you the information straight and unadulterated.
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respond to your e-mail. Drop us a note
at: feedback@northfloridamotosports.com
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last modified 09-28-09