Local author debunks some business mystique
by Kathleen Stinson

SONORAN FOOTHILLS – Local author John Callahan left a six‑figure job with a national corporation to educate consumers on ways to defend themselves against aggressive marketing tactics common in the mortgage and automobile sales industries.

Callahan moved his family from San Clemente, Calif. to the Sonoran Foothills in December of 2006 to escape the hustle and bustle and make a better life. As the former assistant vice president of marketing for H&R Block Mortgage Corp. and as a private consultant for various national companies, Callahan witnessed firsthand the aggressive marketing tactics that comprise the bread and butter of national automobile and mortgage companies.

“I was uncomfortable with what (H&R Block Mortgage Corp.) was doing to consumers and did not agree with their aggressive sales tactics,” Callahan replied when asked why he left his executive position.

“I personally witnessed in my experience (consulting with various automobile and mortgage companies), sales representatives lying to elderly widows who had recently lost their husbands of 60 years, and celebrating after that they had stolen their equity,” Callahan added.

He doesn’t personally blame a sales representative for trying to make money to feed his family. What he objects to is the industry’s “win‑at‑any‑cost  training tactics” geared to overpower the consumer.

In December of last year, Callahan self‑published his first book, “Empowering Consumers with How‑To‑Torials,” a revealing road map through the mortgage, automobile and real estate purchase process.

Callahan, who owns a business consulting company, EC360, in the Sonoran Foothills, researched consumer literature on mortgage and automobile sales, but found a lack of forthright information available to the consumer.

“I decided to write the book because after searching for honest information about the mortgage and automobile transactions process, I couldn’t find anything. All I saw were ads by companies trying to sell,” he related. “I know, I used to write the radio and TV ads.”

Callahan said his book gives consumers a practical guide which includes tools, charts and graphs. It helps prepare the consumer for sales representatives who are trained to get the psychological advantage over the consumer.

Callahan said the sales process is designed at every step to make a profit for the car dealer and take money away from the consumer.

For example, most people do not realize that extended auto warranties presented to the buyer as a fixed cost are negotiable. An extended warranty offered to the consumer at $1,485 probably costs the dealer about $525. Anything in between is negotiable.

When selling accessories, a salesperson may tell one consumer leather seats cost $2,800 and another $1,100 during the sales process. The cost to the dealer likely falls in the neighborhood of $600, yet there is no set upper figure salespeople cannot cite.

Callahan lists the 10 most common mistakes people make when buying a house.

Number 1: Don’t let the owner know how badly you want the house during negotiation.

He said mortgage companies typically will run a consumer’s credit to find out what mortgage rate the buyer qualifies for and then offer a rate above that to make a profit. The buyer never sees the lower rate for which he qualifies.

The mortgage company may also tell the consumer its charge for making the loan is an added one percent, but often neglect to disclose, or bury in the documents, the fact that the mortgage company is earning an additional 1.5 percent paid by the lender.

These are but a few of the tips included in Callahan’s book.

For more consumer‑friendly information, visit Callahan’s free, no‑ad Web site at howtotorial.com.