Daily for all sales transactions
Why was the retail installment contract sent the contract to the bank or lender? What should happen next?
Once the contract or vehicle sight draft is submitted to the lender or bank, the next thing that should happen is the 48-hour rule of asking why?
Using DealerTrack or RouteOne if either is an option, has your contract reached its destination? If neither is an option, contact the lender to confirm the retail installment contract has reached it’s destination.
Is the retail installment packet missing any additional documents?
Are there any notes that pertain to the finance department that needs to be communicated?
Remember cash is king – unless you have verification that the contract is received and in process with no additional requirements, the dealership is still waiting for funds?
Checkpoint follow-up on all deals in transit or not paid with 72 hours. Check for status updates from the finance department or the lender.
If the organization has a tool such as Axcessa follow-up by recording and updating all necessary notes until verification of funds is confirmed. If not utilize Excel to create a worksheet (see example) to record all pending installment contracts being held for funds.
Depending on the organization the Title Clerk must be prepared for daily or weekly meetings (refer to the organization’s process). Being prepared to the weekly meeting means having updates on all outstanding contracts.
Vehicle Sight Draft
Do you know why the vehicle sight draft was submitted to the bank?
What should happen next?
If the vehicle sight draft was sent by courier unless the bank or credit union has a written policy, the dealership should have the funds within 24 hours or less. Usually, payment is disbursed with a cashier’s check, bank check or money order for the full amount of the vehicle sight draft presented.
If the vehicle sight draft has to be submitted to the lender by mail, the preferred method is Fed-ex as an example of tracking the outstanding vehicle sight draft.
Enclose in an overnight packet:
– Completed Vehicle sight draft with assigned MSO or title (any other required documents per your state, county or country of origin)
– Instructions on what is next, which must include where the cashier’s check or funds should be sent and an email address or phone number for questions.
– Highly encourage enclosing a pre-paid overnight packet to track the incoming outstanding funds.
Maintain a worksheet for all deals in progress until it funds or if the Organization has an automated system utilize it as a means of tracking outstanding monies, please refer to it.