BLOG FOR SPECIAL FINANCE CAR DEALERS
Calculating Income and Pay Stub Debt
Misrepresenting the customer’s income and overlooking non-standard pay stub debt may cause your car deal to be held up in funding. Often subprime lenders will charge additional fees to fund these deals, other times they will reject the car deal and return the contract unfunded to the dealership.
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Increase your Lead Contact Ratio
In the last post I discussed what drives people to the Internet and the differences between traditional internet leads and subprime leads. Now I would like to write about what to do when we make initial contact with an internet lead, sounds simple enough, but even if utilize an automotive call center, you’re likely to make contact with fewer that 80 percent of the internet leads you receive. (Read More…)
Comments (0)The Differences Between New, Used, and Special Finance Leads
With all the traditional forms of advertising inundating consumers why do many choose to go online? In general, people go online because they feel it will broaden their choices, save them time and money, and reduce conflict. This is the reason that sites like Amazon.com and Ebay have become so popular. Let’s say for example you wanted to buy, an 8 by 5 foot red, yellow and orange, rug. (Read More…)
Comments (0)Advertising Budgets for Special Finance
How much should a car dealership spend on attracting the sub prime customer; 5,000 dollars per month? How about 250 or 500 dollars per sale? I’ve heard these numbers thrown around quite a bit and neither makes sense to me.
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Special Finance Types of Bad Credit
When it comes to special finance there are varying degrees of bad credit. Some people have Good-Bad Credit while others have Bad-Bad Credit.
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Long Term Success in Subprime Car Sales
Over the last year and a half we have heard allot of car dealers say that their sub prime sales are declining. Dealers are halting special finance advertising programs because they can no longer get tough deals bought, or they don’t have vehicles available to fit lender calls. In addition, big finance companies like Triad and Household have gotten out of the auto finance business while at the same time captive finance companies have tightened their belts. (Read More…)
Comments (0)Minimzing the Risks in Subprime Auto Sales
Perhaps you’ve heard of, or witnessed yourself, stories about dealers getting sued by a sub prime auto lender; or a lender running out of money when a dealer had scores of contracts waiting to fund. On a smaller scale you may have heard of a lender not honoring an approval because employment and income information did not verify at time of funding, or charging the dealer back on an old deal because it was repossessed and the equipment on the vehicle was not as stated when the deal was originally approved.
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Car Sales - Switching from Prime to Sub Prime
If your sales staff could pre-qualify everyone with 100% accuracy you would never have to switch a customer from a prime sales process to a sub prime sales process. Even with years of experience it is unlikely that this will occur. Typically, when the dealership sales staff is unable to determine the credit worthiness of the buyer they will follow the traditional sales process. That being said, there will be car buyers that we cannot get bought, under the current conditions, on their automobile of choice. (Read More…)
Comments (0)Free Online Subprime Automotive Sales Training
As a prelude to the 2010 NADA trade show, we just announced a 30 day free trial of our 24 online video special finance training series. The series is an entry level sub prime sales process for dealerships whose goal is to achieve long term success in subprime. Each online video builds the foundation necessary for long term success by distributing subprime roles, responsibilities, and knowledge amongst many groups within the store; sales, management, F & I, and administrative personnel. (Read More…)
Comments (0)LotPro Software – Not just for special finance anymore
Since the subprime mortgage meltdown, more and more prime lenders, captive finance companies, and credit unions are following the rules established long ago by subprime auto lenders. Special finance lenders have always had strict advance guidelines based on the credit tier of the applicant whereas prime lenders would often over advance for an applicant with a good credit rating. (Read More…)
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