Q. Do you recommend paying on front gross or a

combination of front and back gross profit? Do you feel

pay should be based on all deals or just SF deals? If

only on SF deals, how do you count an SF deal? What do
you feel is the optimum way an SF manager should be

paid?

The most effective special finance pay plan is to pay on the front and back end of the deal. We suggest the compensation for the special finance manager be 8 percent of total department gross, which includes back-end gross.

In response to what is a special finance deal, a special finance deal is one that cannot be spotted in the prime finance department, or if the rate is less in special finance than in prime, or if gross is given up in prime but can be held in special. I do not believe there is an easy answer on the separation of special finance and regular finance unless it is a United Auto Credit, Westlake Financial or Drive Financial deal (and others that are considered only special finance companies). Where the problem lies in sorting prime versus subprime in deals placed with companies like Citi, Wells Fargo and Chase.. I believe when there is a borderline deal, the deal should go where it makes the dealer the most money – always using front gross as king.

– Kris Wright, Motion Dealer Services