Well, she came under good recommendations and lots of testimonials on her consulting website. She had degrees, lots of them, some from the University, others professional degrees. I think she might have even had a PhD in psychology, but this was nearly two-decades ago, so I don’t recall, but either way she sure acted like it. She showed up on time and her car was clean, she was dressed in tailored business attire, and spoke a good game – with a good attitude. Let’s talk.For today’s Franchisor case study, me being the retired franchisor, and you being the student of business, let me explain something about feel-good groupthink team work and political correctness. You see, having plenty of letters next to your name and being able to work on a team and communicate well, is not the only requirement for winning, in fact, in the real world – the kick-ass world of franchising – it’s not even in the top ten attributes needed for a fast-moving franchisor interested in winning markets.Back then, we only hired winners, no one working for me, with me, or around me needed hand holding, or silly certificates for participation, and they certainly didn’t need (little did I know then) what this lady was offering. She comes into the office with a big smile, and I said “okay so, how are you going to help us win markets?” She said;”I am here to empower your team, everyone on your team, you included.”At that point I couldn’t help myself, in fact, I just laughed, rolled my eyes, and then looked her straight in the eyes and told her, “my employees, franchisees, vendors, and team members do not need to find themselves or learn how to be empowered, they are empowered, we kick-ass!” Then I added, and “I sure as hell don’t need any empowerment coaching.”She told me that everyone no matter how competent, efficient, or great needed empowerment. I thought to myself “what crap” but told her, “thanks, there is the door and don’t let its empowerment kick your but as you leave.” She said she was appalled, and I just smiled and laughed. Today, I’ve told that story 100s of times, that was one funny experience I had with a left-leaning social studies communication major with a minor in political correctness.Look if all you have are good communication skills, well that’s nice, but don’t let the door hit you on the way out. Please consider all this and think on it.
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5 Reasons Why An Online Business Is The Best Home Business
Over recent years, people from all walks of life have had their entrepreneurial spirit sparked into looking for the easiest business to start. The recessionary climate and increasing unemployment levels mean millions of people are waking up to the fact that they need to take control of their future. To do this, new entrepreneurs want good businesses to start so that they can generate a new and sustainable income stream.So what is the easiest business to start? It’s sensible that the best business to start will have the least expensive set up expenses, they will have services and products that people want to buy and will have the biggest possible client base. Welcome to the world of online business! It’s not a secret that a growing number of people are purchasing products and services online because of convenience, choice, cost and service. Starting up an online business and joining the thriving e-commerce world really is easiest business to start.1. Low set up costs.The beauty of starting an online business is that the start up costs are very low as compared to a conventional bricks and mortar business. Starting conventional business requires substantial investments in human resources, inventory and financial capital. Industry is becoming more information-intensive and less labour and capital-intensive.This means that more and more traditional barriers to success in business are being removed.2. You do not need to have your own products.An online business is the easiest business to start because you don’t even need to have your own products to sell. In fact, you don’t have to stock any products, set up payment systems or worry about distribution or product fulfillment. This is possible with one of the most popular and best home business models called affiliate marketing.This is where you promote and sell other people’s products. It’s like being an online commission-paid sales person. When you make a sale, you get paid a commission.The creator of the product is responsible for the whole development and fulfillment of the product. They will supply the marketing resources, manage the product delivery and follow up customer assistance. Your task is to find the customers and push them to the vendor’s online sales pages. There is an almost unlimited amount of products, services and online business ideas that you can promote this way. You can become an affiliate for services and products available on websites such as Amazon, CJ Affiliate, ClickBank or JVZoo. You can sell any products you want and receive commissions on every sale.3. Your business is open 24/7 to customers all over the world.One of the best advantages of an online business is that you can work from anywhere you want so long as you have a computer and access to the internet. The internet makes it possible for you to have customers from all over the world meaning that your business can quickly grow. You are not restricted to finding customers who live near to you. When you have an online business, your business is open all day long, 7 days a week, 365 days a year. You can literally earn money while you’re sleeping.4. Use software to your advantage.The great reasons for starting an onlne business is that a lot of tasks can be automated. For example, it is important to introduce your business to prospective customers, maintain contact and build relationships with customers and send out special offers. This can easily be done with email autoresponder marketing software that works on autopilot. An autoresponder works day and night for you, while you concentrate on other aspects of your business.5. Easy access to training.Although an online business is the easiest business to start, it’s possible that you will need guidance with certain areas at some time or another. To help you, there are a wide variety of high quality online business training programs available on the internet. Your journey to success will be quicker if you make an investment in your online business education. Remember that you can learn as you earn. Learning from a successful person who has gone before you can make a big difference to your business. They can precisely evaluate your efforts, help you make progress with your marketing and profits and explain the way around stumbling blocks.
4 Great Tips to Ensure You Make the Most From Your Business Telecommunication Services
Business telecommunication services are essential to any business- start up or established for years. However, business phones are often ignored by owners and decision-makers because they don’t make up the core activities of their business. The purpose of this article is to help business owners and decision-makers make effective decisions to ensure that business mobile, office phone and internet services are delivered cost-effectively and also proactively benefit business activities.1. Understand your plans- Service providers offer many plans which all have different features and options. Make sure you understand the bonuses available with your plans. For example, a large fleet of mobile phones may benefit from free calls between the fleet, or if you call a few numbers a lot, look for a plan that offers free or discounted calls to nominated numbers.2. Consider switching to a VoIP service- Voice over Internet Protocol has been the new buzzword on telecommunications for some time now, and improved technology means that there can be huge savings for your business. VoIP basically means that your business telecommunication services are provided over your internet service, instead of having a separate internet connection and landline connection.3. Upgrade your technology to increase return on investment- Research in Motion, the company that brought us blackberry, have commissioned studies which show how investing in the blackberry service has increased the productivity of businesses. You do not necessarily have to buy a blackberry but you should consider whether a PDA phone and its features could be beneficial to your business. Upgrading the technology you use could increase your profits!4. Shop around. You may think that it would be too much of a hassle to change carriers or providers, but shopping around the different carriers means you could save up to 30% on the cost of your business telecommunication services. Even if you don’t change your business telecommunication provider, telling them you are considering taking your business telecommunication services to another provider should encourage them to drastically lower the rates they charge you. Business telecommunication services are vital to any business and too often ignored. The purpose of this article is to provide you with some quick information to improve the quality of your business telecommunication services and improve the profitability of your business.
Better Ways of Understanding Finance in Today’s Market
As I write this article, the state of global finance is very much uncertain. One country sneezes and the rest of the world catches cold.Nothing is certain – jobs least of all. There once was a time when, if you had a job in a bank, you were set up for life. Not so any more. There are factories, retailers, industries, and banks, falling down all around.However, this is a phenomenon that repeats itself:Every twenty years or so, in the financial world we experience a recession. Recessions, by their very nature are temporary. Some recessions are worse than others, and this one appears to be bad. But it is still temporary.It doesn’t have to be as bad as it seems. We all – but in particular the media – do tend to think of ‘bad news’ as ‘good news’ and we talk ourselves down into even more ‘bad news’. It’s not possible to open a newspaper or turn on the TV without being bombarded with facts about how bad and how gloomy the times are, and how we are all diving into an even deeper recession.Why is that? The main reason seems to be that bad news sells papers better than good news. It’s the same with any news, anywhere in the world. If the media were to start talking about ‘good news’ we would all suddenly feel a lot better, but there would most probably be fewer newspapers sold!So it’s time to check out the other side of the coin.Whatever your financial state of the moment, it’s essential to PLAN your personal finances. Remember the old saying:Earn $50.00 and spend $50.50 – result: Misery – butEarn $50.00 and spend $49.50 – result: HappinessWhat’s the answer? Well, it’s essential to make a budget. Taking precise notes of everything being spent over the week (even down to the odd newspaper or stamp) and working out exactly where savings could be made. This is a very good start.Paying your bills on a monthly direct debit system is another good way to budget wisely. In doing this you would have no big bills coming in to surprise you – it’s all broken down into bite-size chunks that are more easily digested.If at all possible pay off your debts – it’s essential to become debt free as soon as possible. If you have debts, and you also have some savings, just think about the cost of your loans, against the amount of interest your savings are earning. There really is no comparison. So use any savings you may have to reduce your debts. This includes paying off your credit card debts, and car loans.The greatest form of finance control is self-discipline. Understanding finance also includes self-discipline. Sometimes you have to deny yourself small pleasures in order to obtain the bigger more important things. Finance also means that you need to set your priorities straight. Sacrifice may seem like a lot at the moment but the end will justify the means.Credit cards do have their place. It’s great to use a credit card, but essential to use it wisely. If you settle the bill completely at the end of each month you will have no interest to pay.It’s true to say that the majority of us working people exchange their time for money (work) for most of their lives. Whereas rich people don’t do this. Rich people invest their money and make it work for them. They collect passive income, including rents, share dividends and interest. Ok, money makes money, but there are ways to get out of the treadmill situation, and jump aboard the train to freedom. The rich people also earn money from royalties – doing the work once and then earning royalties forever – from books, articles, reports, software and so on.There are many ways to avoid financial disaster. They won’t automatically come to you – you will need to search for them and do something positive for yourself!This article may be copied and distributed, so long as the signature file and active links are also included.
4 Main Questions You Need To Ask In Advertising
Your basic principle of advertising requires you to completely analyze the answer some question prior to making an effective advertising decisions. Here are the 4 question you should ask yourself:4 Main QuestionsWhat should my advertising accomplish?Who should your advertising speak to?What should your advertising say?What kind of advertising medium should you use?In many kinds of business conditions, these question can have many answers. As you go through these question you should think about each question you should not accept just any answer until you have reviewed and look in to the complete extent possibilities.What Do You Want Your Advertising To Accomplish?The first thing you want to improve on in your advertising plan is know what your precise advertising goals are. You need to be as specific as you can as to why are you advertising and what do you want accomplish. You will want your advertising to expand your business, for your advertising program to work, you have to be very precise. Here are some goals you may what to achieve in your advertising:You may want to increase familiarity of your business.You want to entice your competitors customers to your website.You want to multiply the good chance of keeping your current customers and building their loyalty.You want you produce instant sales and sales leads.There is a chance you may want your advertising to accomplish all of these goals and even more. You will want to prioritize your goals. Your advertising will work most excellent when it is expanded to meet one goal at a time.Who Should Your Advertising Speak To?Now that you have established your advertising goals, you need to select your purposed audience for your advertising message. Advertising that is aimed at everyone very seldom works. For successful advertising should be written toward a specific customer in mind. You should attempt to picture the individual you need to reach so you can accomplish your advertising goals. You should relate to your targeted customer in all of the following:Demographics: which includes age, income, gender, location of business or residenceBehaviors; your current knowledge of your business, products, services and or vendors they are using, loyalty to your competitors business or your business, etc.Needs, want, or desires: what are the benefits your customer is looking for, the reason on which they will decide if they will use your product or service, and how can your business fulfill there needs.What Should My Advertising Say?Once you have figured out who your target audience will be and what they are looking for. The service or products you offer, you will need to decide what your advertising will say. Your advertising should be written to inform a message that can be seen as something is important by your intended customers. You should write your advertising to persuade your audience, describing the most important benefits of your service or product in your advertising. You should keep in mind Attention, hold Interest, arouse Desire, motivate Action the analog is AIDA.Where Should You Place Your Advertising?You will find that every month, there are new and updated advertising options become available. You can place advertising on television stations, on grocery carts, in airports, buses and any where else you can locate. You want to place your advertising where your target customer will have the highest likelihood of hearing or seeing your advertising. There is no good or bad setting place to advertise. You need to look at your advertising goals, your advertising budget, as you look at your media choices.
6 Steps to Creating The Perfect Business Loan Package
Bank lending has really been tight over the last few years. Most business owners now think that the only word their banker can say is “no.”The reason: This last financial crisis has changed the lending game. Banks and other lenders will not just provide you a business loan because you have a great smile or a novel idea. You have to get in there, roll up your sleeves and really entice them to lend to your business – make them approve you!Know that when lenders do begin to approve more loans again, the flow of new business loan applications will really flood in. Thus, to ensure that your loan application gets funded, you have to find ways to get your business noticed – making it not only stand out but stand above all the rest.Here are a few tips to get your business loan application moved to the top of the pile:Pick the right bank or lender: Not all lenders will emerge from this financial mess in the same position they went into it. Some will have changed their entire lending philosophy. Some will no longer loan to small or mid-sized businesses – focusing only top tier/low risk companies. Some will only provide loans based on companies in certain industries or that have specific collateral. And, some may be out of the business lending arena altogether. So, start with your current bank or past lender and see if or what they have changed in regards to their business loan policies.Further, all banks and lenders have changed their loan approval criteria. This was not done to hinder businesses from seeking loans but more from the threat of new governmental regulations. Thus, if your business was able to get a business loan or working capital line of credit prior to the financial meltdown – that does not mean that it will qualify for one today or even tomorrow with the same bank or lender.Collateral and Guarantees: Banks are now more focused on repayment and not just one form of repayment but several. Banks and other lenders always look to current positive cash flow as the first source of repayment. But, that is no longer enough. What happens if you have a slow month or if the economy tanks again? Lenders will start looking for additional (complementary) forms of repayment from sources like personal guarantees or large amounts of and/or highly valued collateral.Collateral will be key in this new lending market. If you are serious about your business’s future prospects, then you should have no problem putting up collateral against a business loan request. Not only does collateral provide your lender with an additional source of repayment but could really show your banker or loan officer that your business is serious – essentially helping you close the deal.Keep in mind that different collateral has different value. Banks and other lenders don’t look at how much you paid for a piece of equipment or a piece of property. They look at its value as how fast they can sell it at fire sale prices to recoup their losses.The best collateral – where your business would get the best value against a loan – is collateral that has high liquidity – like accounts receivables, investments, purchase orders or even personal liquid assets of the business owner or of the management team.Make sure your business loan application clearly states what collateral and/or guarantees you or your business is willing to provide as well as its current, conservative market value. Providing this information up front will demonstrate to your lender that you are here not to fight with them over this hotly contested issue but are willing to play within their rules. Plus, banks like easy deals and deals with tons of collateral are usually the easiest to get approved.Remember, if you don’t show and won’t demonstrate that you are serious about your business and that you have not taken the time to understand your lender’s collateral or guarantee policy, then your banker or lenders will treat you the same way and move your application to a bottom drawer or the round file in the corner.A Clear Story: Make sure that your loan application tells your story. Not just what your company does but also why it does what it does, who (your customer segment) it targets and satisfies, how its current management can build value in the future (based on what it has done in the past) and what the funds will be used for – specifically. Putting in your business loan application that you will use those funds for general business purposes just will not fly any more. Banks and other lenders want to be repaid and must be satisfied that you and your business will deploy this new asserts (the loan funds) in such a way to generate enough new revenue to pay back the loan and interest as well as grow your company.Financial Statement and Tax Returns: Banker and lenders will not just take your word for your financial condition or be satisfied with a quick printout from your accounting program. Stated income loans are a thing of the past. Lenders will be looking for both audited financial statements and/or completed and filed tax returns – at least 3 to 5 years worth. These financial statements not only provide additional information to help your lender make their decisions but can really validate your business’s potential; both of which will further your ability to receive that sought after approval.Further, many lenders today will contact both your customers and suppliers to back up some of the information provided in your financial statements. While this may seem like a huge hassle – it is just the way the game is played now. If you go into this process knowing what financial documentation is required and planning for it (also taking to your customers and suppliers before hand) then the burden will be lessened on both you and your loan officer.Forecasts: Combined with financial statements and tax returns, your loan application should include well-formulated financial forecasts. Not only will this show the strength of your management ability to direct the company moving forward but forecasts (if done properly with a best-case, worse-case and most likely-case scenarios) can help your lender determine if your business will still be able to repay their loan under different market conditions. Additionally, these forecasts should show most likely scenarios both with and without the loan proceeds.As always, tie your forecast to your expected loan term and make sure that all numbers trend with past results – if not, make sure you have a detail explanation of why.Network: Lastly, do your homework on who your bank or lender has worked with in the past. Most banks or financial companies have their core customers – those businesses that can just pick up the phone and get whatever they want. If your business can receive references or introduction from them – that is likely to put you over the top and get potential lenders knocking on your door.If that is not possible, look to those who you have dealt with in the past (like other lenders or suppliers) or to those who provide your business revenue (like customers) for references. These groups will show your lender that they will continue to support your business in the future – making you a better candidate for a business loan.The bottom line here is that if your business really needs outside capital to grow then make sure that you put the same intensity into your business loan application as you do into your business. Walking into your bank and asking for a business loan is much different than walking into your butcher and asking for the cut of the day.Not getting what you want from your butcher may disappoint you but not getting what you need from your banker or lender could destroy you.As we emerge into this new economy, you as a business owner, must understand that business lending has changed and if your business needs outside capital to prosper and grow then you must make sure that you have a well prepared business loan application before you even consider walking into your lender’s office.
How to Start a Career in Finance
If you are interested in starting a career in finance, it would be good to plan ahead. There are several things that you will need to take note of in order to prepare yourself well for this field.The basic requirement needed would be the right education. The minimum level of education to get into an entry-level position would be the bachelor’s degree. The online finance degree is becoming increasingly popular as it allows people to complete the degree while gaining working experience. Nevertheless, an online degree of this level will focus on technology, e-business, ethics, critical thinking, research methods, and statistical analysis. If one is interested in breaking into management level positions, they would need to have either a master’s degree or an MBA.With a master’s degree, people often complete it while working full-time. At the same time, they would be able to attain certifications like the CPA, CMA, or CFA. As one will need to balance between work and study, people often go for an online finance degree of this level for its flexibility. On the other hand, an MBA program with a specialization in finance is always keeping its syllabus up-to-date with the current market. A PhD puts more focus on the theoretical concepts within the field, such as leadership and organizational chance, knowledge and learning management, and high-level decision-making.In finance, certification is very much recommended to show one’s area of expertise. For one to pursue the Chartered Financial Analyst (CFA) certification, one will need to meet the requirements of having a bachelor’s degree and at least three years of professional experience in a relevant field. Then, they will need to pass the three exams that will be taken within the course of three years. On the other hand, personal financial advisors can go for their Certified Financial Planner (CFP) certification which will require them to pass a set of exams and a strict code of ethics, other than providing their academic credits. As for financial managers, a Certified Cash Manager (CCM) requires them to pass online exams and have at least two years of professional experience. The progress of certification for managers in a financial institution industry begins with Credit Business Associate (CBA), followed by Credit Business Fellow (CBF), and then Certified Credit Executive (CCE).Attaining the right education and certification will guarantee you a successful future, in addition to hard work and determination.
Online Finance Degrees Gain Popularity
Online finance degrees are gaining popularity as more students go back to school to earn their degree and take advantage of the recovering market. While employment opportunities in the financial sector diminished during the recession, job opportunities for finance graduates, like the economy, have now begun to rebound.Earning an online finance degree can prepare you for a variety of careers. Often, students who earn these degrees, ranging from the associate to master’s level, find employment as financial analysts, financial managers, investment managers, accountants or auditors, financial consultants, investment or commercial bankers, and even real estate managers or developers. Jobs in finance have traditionally offered students solid job opportunities and this trend is expected to continue. Job prospects for students who earn an online finance degree are expected to grow faster than average from 2008 to 2018.In fact, in US News and World Report’s annual list of the top fifty careers for 2011, accountants, financial analysts and financial advisers are listed as three of the most lucrative careers for the coming year. With employment growth rates projected at 20-30% for all three of these financial occupations, it’s safe to say that a finance degree is a solid investment.Online colleges and universities which offer online finance degrees are a popular option for students who want to earn a degree while maintaining their current job or responsibilities. As the job market continues its recovery, though slowly, investing in a degree that will provide numerous employment opportunities and high earning potential, like finance, will prove to be a smart move for students.
Small Business Startup Loans – What Are the Fundamentals of Business Finance?
If you want to set up or considering setting up a business of your own, you must bring one thing in mind. You must know that you will need money to make sure that the business functions as it ought to. For the purposes of this study, we shall think of business finance as all the money that will be required for the smooth functioning of the business. This will include money from a variety of sources such as loans from lending institutions, cooperatives and these loans may be acquired either on short term or on long term bases.One thing that should be borne in mind is that it is necessary for every person to understand the fundamentals of business finance. This study is not only meant for those coming into business for the first time. Keep in mind that at every stage in the business, there will be a need to finance to expand, transform or even give a new facelift to your business. The good side about this study us that it will enable you to know where you can seek for finance for your business, it will help you to better manage these finances so that you should avoid falling into debts by paying your loans and it will equally let you know what type of loan is appropriate or not for your business.Knowing the Essentials of Business FinancingAhead of opting for any source of finance that might be open to you as an investor, there is always an obligation for you to not only become aware, but to understand and appreciate the importance that financing has to do to your business. As of now, one of the sources of finance to your business is venture capital. Venture capital will refer to a venture group that is willing and able to pump in finance to your business. But it should be kept in mind that this is done with the intension that the venture group will become part of the business.It will have to take part in the running of the business and equally in the profits of the business. In some cases, the option of an angel financing may also be available. This is a situation in which high risk ventures will be financed for the reception of high profits. Another source of financing is corporate venture capital financing. This is almost the same thing with venture capital but the difference is that groups and not individuals will be involved into the financing. You can also think of taking a loan from a bank or any financing establishment.If you are an experienced financier, you will realize that identifying and making use of these sources of finance is easily done if you are aware of all the essentials of business financing. This will be difficult for the novice. What has been realized is that most lending institutions have already created and developed some form of confidence with those already in business, plus the fact that they think their money will be better protected with those who already have some worth to prove.It May Be Necessary To Integrate Your Business When Seeking For FinancingThe rationale for confidence building will vary from one lender to another and will also depend on the lender’s personal conviction about the business. It is normal that every lender will want to scrutinize and make use of any former financial record of a business before it can give loans to that business. In other cases, it is known that sources of finance may be easily opened to groups of business than to individuals.This is the more reason why you must understand all the essentials of business financing before making an application for it. Sometimes, it is necessary that as a sole proprietor, you may decide letting a takeover of your business. This is to give your business a positive credit worth so that it can stand a good chance of being financed. But you must make sure that you seek expert advice in doing this. Remember that there are so many essentials in all of the above and you must be skilled enough in these before you can achieve any success.
The Best Car Deals – Low Finance Rates Vs Rebates – Which Should You Choose?
How To Get The Best Car Deals:Quick tips that will help you at the car dealer:How to understand Rebates and low financing offers:Vehicle MSRP: Manufacturers Suggested Retail Price – This price is always negotiable – don’t ever agree to pay MSRPException: Some vehicles that might be “hard to find” or “limited in production” might be sold by the dealers at MSRP or, sometimes higher. This is usually called Market Adjustment.Manufacturers Rebates: This is your money and has nothing to do with discounts given by the dealership. This money is given to you directly from the factory. Never let the rebate be used as a negotiation tool by the dealer. Any discount or negotiation from the dealer should be separate of any rebates offered.Low finance rates: 0.00% 1.00% 1.9% etc… These are called Sub-vented rates, they too are offered by the factory and not the dealership. Do not allow a “low” finance rate to be used as part of a negotiation by the dealer. These rates are granted over and above any discounts, rebates, etc.Exceptions: There are several exceptions to Sub-vented finance rates, but here are two that you really should be aware of:1. Not all people qualify for these rates. So, if you suspect that you might have some issue that will cause you not to qualify, there is nothing wrong with expressing to the dealer that the low finance rate is something you are interested in, and you would like to apply first, before going through the long, timely steps of deal negotiation. Many dealerships will view this as unusual; however, any “good” dealer will be happy to let you submit an application first if you insist. Why is this important? As we always say, knowledge and preparation are the keys to not overpaying at a dealership. What happens if your entire deal is worked, negotiated and finalized with the dealer? Then you head over to the finance office to finalize the finance terms and payments… You expected to pay 0.00% interest, then at the last second you are told: “Sorry” because you don’t qualify… NOT GOOD THE WHOLE DEAL CHANGES.2. Rebates and “low” finance rates can not always be combined. Some factories allow it some times, however there is no rule; you must do your homework first. For instance, Chrysler offers manufacturers rebates on most their vehicles, plus they offer low finance rates on most vehicles as well. Though, you the customer must decide which offer you want, you can’t have both. Although, sometimes Chrysler will run special offers that allow you to “combine” both the financing and rebate offers at once. But be careful, dealers won’t always tell you that these offers are available, if you are unaware and you agree to pay higher finance rates, you are stuck.Commonly Asked Question: Which is the right choice, Rebate or Low Financing?This is an interesting question asked by many customers, the answer is simple yet many people have no idea.Remember this rule: You should do what’s best for you, do not ever inquire with a person, dealer, or anyone else that has any other motive than what’s best for you.What that means is this: When you ask a dealership which makes more sense, the dealer will likely tell you: “Take the rebate – not the low interest rate.”The reasoning behind this answer is, if you take the rebate you are actually paying “less” for the vehicle than if you elected the low interest rate. So, being that the vehicle price is the most important issue, you should always take the rebate. Is this correct or incorrect?Rule: Don’t be concerned what the dealer is making or losing, it’s not relevant to what’s best for you.Does the dealership stand to gain more if you chose the rebate vs. the low finance rate? The answer to that question is yes, the dealership does stand to gain more. They receive a little more in “reserve money” from the lender if you chose conventional finance rates. The fact is however; that this point is completely irrelevant. Who cares what the dealership is making? Why is that important anyway? Is there some rule that says a dealership is not entitled to make profit? The only person who is doing something wrong in this scenario is you. You’re asking the wrong party for information. If the complete and honest answer might cause the dealer to make less, chances are more than likely the answers will be carefully weighed to fall on their side.Remember: Your concern is getting the best deal for you, don’t waist time caring about what the dealership makes. Prepare yourself by considering all the facts. Do not make the common errors of all the people we constantly heart about who over pay all the time.Fact: People who think that dealerships are losing money on them are usually the ones who pay the most!Note: Please understand the purpose of this and every other post we write is NOT to condemn dealerships for making profit. Why should a dealer not be entitled to profit? What right do we have to ask them to lose money? Would you ever go to a restaurant and tell them that you insist they sell you dinner and lose money? It’s a stretch, but equally as ridiculous.The purpose of this post is to assist fair people in getting the best deal for themselves. Protecting people from being “ripped off” by a deceptive dealership is our motivation. We don’t claim that all dealers are unfair or “rip off artists”, in fact we are aware that most dealers are honest and forthcoming. Although, everyone is in business to make a profit and the topics written about within these posts are for the purpose of assisting “fair” consumers achieve “fair” and honest deals. Why do we keep mentioning “fair”. Because equal to us having no concern about a cheating dealership, we also have no concern about the “unfair” consumers who want the good dealers to close down their business and lose money.”A GOOD DEAL IS WHEN BOTH PARTIES ARE SATISFIED”As we have mentioned so many times; price is not always the most important issue.The following is the one and only correct answer to the Rebate vs. low rate debate:With any issue that causes you to make a decision there are always certain facts in place, those facts make up the “pros and cons”. With any decision we make, we weight the pros and cons and ultimately are lead to a decision. Then of course, we hope that decision was the right one.Remember this rule: There is always a point where the two lines will cross, that point is where you will find the correct answer.This means; there are variables that create change in every deal. For example: It may be a better deal for me to take the rebate, while it is a better deal for you to take the low financing rates. Let’s explain:You might be financing $30,000 and your finance term is 60 months. The Factory is offering a $3000 manufacturers rebate or 0.00% for the 60 month finance term. Which do you choose?I might be financing $12,000 – The factory is offering a $3000 rebate or 0.00% for the finance term. Which one do I choose?Obviously the answers vary; your lines of “break even” will obviously cross way sooner than my lines. The reason: different factors in the two deals will yield different answers.Here’s how you figure out the correct answer based on your factors:For this example we’ll assume that you are considering a $30,000 car with $3,000 rebate or a 0% interest rate, and for the sake of finding an answer, we’ll assume that you’re putting $3,000 a down payment and you qualify for all offers.First: Draw a line down the middle of a piece of paper; on one side write Rebate on the other side write 0%Second: on the 0% side write in the sale price of $30,000 – and on the left side (rebate) write in the sale price of $30,000 as well.Third: On both sides add in your local tax rate. For instance: if you live in Queens NY add 8.25% as sales tax.Fourth: on both sides add $300 – this should cover DMV – Inspection and dealer Doc Fees.Fifth: On both sides – subtract $3,000 for you down paymentSixth: On the rebate side subtract $3,000 for the rebateIf you did this right, so far you should have the following results:Both sides: should show Sale Price $30,000 Tax $2,475. DMV $300. Sub Total: $32,775Rebate Side Should show $6,000.00 Total down payment and an “unpaid balance” of $26,775.00The 0% side should show $3,000 Total Down Payment and an “unpaid balance of $29,775.00Assumption: If you chose not to take the 0% – the dealer offered you a 5.5% interest rate.Compare to see where the lines cross:Next step – find an auto loan calculator – you can go on any search engine type in “free auto loan calculator”I am not able to attach a link to this area of the post so I will simply suggest a very user friendly, free calculator (which we have no affiliation) is chase.com just search:”Free chase auto loan calculator”Calculate:REBATE SIDE$26,775 Amount Financed5.5% APR60 Month TermAnswer: Payment $511.43Total Interest: $3,910.80Total of Payments $30,685.000% SIDE$29,775.00 Amount Financed0% APRAnswer: Payment $496.25Total of Payments $29,775.00Summery: On your deal, 0% came out to be $910.80 less than the REBATE, so obviously the better deal for you is 0%.On my worksheet, using the same method, it turned out that the rebate was quite a bit more of savings, (only because I was financing much less) if I chose to finance more money perhaps the lines would cross sooner.Final notes to remember:1) If you choose to lower or raise you down payment and lower and raise your amount financed, the out come of “which one” is a better deal will vary. So, keep testing the different scenarios using the method provided above and you will find the best deal for you. Every time!2) Be careful – No rebate is final, while low financing isn’t: Keep in mind this very important consideration: If you choose low financing over the rebate – essentially you just paid more for the vehicle and you can’t get that money back. However, you chose to do so in return for free financing terms. (Very smart) You did your homework, you made your decision based on solid factors and you made the overall least expensive decision. EXCELLENT WORK! Though, you must remember you made this comparison based on a 5 year repayment term. If you keep the vehicle for 5 years, and pay as expected you win, your calculations were perfect and you achieved the best deal for you. On the other hand, if something changes and for any reason you decide that you are not going to keep this vehicle beyond the second or third year… Then, you just gave back the benefit of the low financing. The variables have changed once again and the better deal swings back to the rebate. So remember, in the privacy non pressured environment of your own home; carefully consider all your options and likelihoods. For instance, if you know you don’t keep a vehicle beyond a couple of years, this must be included as a decision factors.Long story short: Always compile all the facts first, limit the variables that can change the deal and negotiate with confidence.