Dealers who track this metric are seeing increases. During the pandemic, unit sales been easy and many dealers got a little aggressive with their tactics. It’s also possible that dealership disclosure policies weren’t always followed. Where there is an up, there will also be a down.
Not all dealers track chargebacks so it’s tough to say what a reasonable % should be. We do know that chargebacks are directly correlated to strong sales tactics and a lack of transparency. A high number of chargebacks is not just a financial loss for the dealership, but they consume valuable time, can lead to upset customers, and might potentially be an indicator of future legal problems.
I’ve worked with a couple of dealers on the best strategy for dealing with chargebacks. We created a form that the finance personnel complete every time a chargeback is processed. Only takes a few minutes to complete, and then they are turned in to the GM. This process quickly identifies the root cause(s) of why the chargebacks are happening (product, person, or process). Once you have the data, a little training is all it takes to get things back on track.
Do you have a process for handling chargebacks?
https://www.linkedin.com/posts/markjsheffield_finance-marine-rv-activity-6718183078810005504-usOi
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