BLOG FOR SPECIAL FINANCE CAR DEALERS
Specia Finance Department Work Flow
The work flow within the special finance department has to be organized. A tool I’ve always used to keep organized is a lender call-in log. When properly maintained a lender call-in log can help you track critical success metrics within your department.
For example:
- Book to Look Ratios
- Submitted /Approved/Delivered
- Lender mix/Approval ratios
- Advertising source evaluation
- Salesperson Success
This is especially important if I’m off for any period of time, or out to lunch. That way, sales people can obtain the status of their deal.
Now a days I use the electronic Call in Log within Lot Pro’s F & I suit. If you don’t have an electronic version, you can do it the old fashioned way, with paper, pens, and colored highlighters. Color codes significantly increase the effectiveness of the lender call-in log. I only use two colors for the log, GREEN and RED. To get the greatest benefit from the call in log, I use the following system:
If I’m with a customer I place new deals in my To Be Worked file.
After reviewing the deal I give it a priority A, B, or C. Using a priority system helps me focus on what I can deliver today.
- A - Most likely to get approved/delivered with little work (no-brainers).
- B - Likely to get approved/delivered with rehashing.
- C - Not likely to get approved under current circumstances.
If I have enough information to proceed, the deal is submitted to a lender(s) for approval. When I’m busy, I always start with priority A deals first. After the deal has been sent to the lender(s) it is logged in the call-in log complete with address, phone number and time called in, (this helps me better remember the customer details).
If I need more information, I call the customer immediately. If I get ahold of them and the necessary information is gathered, the deal is submitted to a lender(s) for approval. If, on the other hand, I need stips (i.e. paystub, divorce decree, etc.) or any other information, the deal is placed in the Waiting on Customer file with a follow-up time.
If I cannot reach the customer, I log the deal and return it to the salesperson to gather the necessary information/documents.
Upon receiving the lender response, I immediately update the call-in log. If approved, I highlight the lender name in GREEN and place any notes in the conditions section and place the deal in the Approved file. If declined, I write “TD” under conditions in the call-in log. I then call and rehash the deal with the lender. If it remains declined, I highlight the lender name in RED.
If every lender I sent the application to declined the loan, I place the deal back in the To be Worked file. If I determine that I cannot obtain financing for the customer under the current conditions, I contact the customer, place the deal in the Dead file, and highlight the customer’s name, address and phone number in RED. A brief explanation can be entered in the conditions section of the call-in log.
After delivering a customer, I highlight their name, address and phone number in GREEN. If the customer was spot delivered, I do not highlight the lender in GREEN until it is approved.
By logging every deal that is submitted and continually updating my log I instantly know where I stand on every deal. If a lender or customer is not highlighted in my log that means I am still working the deal. The log is always on my desk and available for the sales people to review.