Articles: Marketing & Sales

Sell More Cars with Fewer Leads

Dave LaLonde is Senior Vice President and Search Engine Optimizer for Auto Credit Express. The ACE Group is a special finance total solutions firm offering their dealership partners entry level and advanced sub prime training, an easy to use online software, and an expert auto sales lead system.

For many retailers the holiday season is The Most Wonderful Time of the Year. Not so for many car dealers. I've been generating special finance leads via the Internet for the past four years; each year quality traffic and special finance lead production drops off by at least 10% for the months of November and December. If you rely heavily on Internet leads for your sub prime production you may not consider this to be The Most Wonderful Time of the Year. If this is the case, it will cheer you up to know that you will have 10% more time over the holidays to analyze and adjust your sales process.

If you close around 10 percent of your Internet leads, your sales process most likely mimics Process 1 below:


If this is the process within your store and you are converting around 10 percent of the leads, congratulations, you may not benefit from the advice that follows. On the other hand, if your sales process mimics either Process 2 or Process 3 below, and you are closing far less than 10 percent of your Internet leads, the advice may help.


How to convert more Internet leads into sales with 10% less traffic.

To sell more cars on fewer leads during the holidays, you will have to increase the conversion ratio between the sales gates. Each of the three processes above begins with a New Lead and ends with a Sale. If you are still reading I assume your sales process more closely resembles Process 2 or 3 than it does Process 1. Also, that you are currently converting far less than 10 percent of your Internet leads into car sales. By reorganizing the interior gates and utilizing one or all of the techniques below, you will increase conversion between the gates, reduce the time spent on non-productive leads, and decrease the time consumers spend at each gate. To really make this work you will, however, have to move outside of your comfort zone.

Stop What You're Doing and Call the Lead Right Now

If it is during the normal work hours the first call should be to the work number. If you do not have a separate phone number for your sub prime department get one. To prevent any negative feelings about your store or the franchise you represent, get a number that does not display the dealer's information via caller ID. In the mean time, use your cell phone.

Prior to the call, do a quick PTI analysis. Convert the lead's max payment to a finance amount using standard terms. For example:

Mr. Smith makes $2,000 per month. Using 20% PTI he qualifies for a max payment of $400. Use a 72-month term and an 18% rate to convert the $400 payment to a finance amount of $17,537.87.

If You Make Contact Make Everyone Feel They are Approved

There are many sub prime managers that subscribe to the "Never tell them they are approved" theory. I am not one of them. When you get them on the phone, or they call you back, make them feel that they are approved! Give them the maximum dollar amount, right to the penny.

"Mr. Smith, I have great news. Based on the information you submitted online today I have you qualified for a loan amount up to $17,537.87. Can we meet today or tomorrow to discuss your loan options? I'm only 10 minutes away."

The goal is to get a commitment from them to meet with you on the first call. You can overcome most objections by stating, "That's why we have to meet", explaining the process, and asking the prospect "did I explain that well enough". For example, if the prospect asks, "what is my rate?"

"Mr. Smith, my lender has many different loan options available for you. That's why we have to meet. So far I have only a dollar amount commitment from my lender. After we meet and you select a vehicle, I will fax over the documents I asked you to bring. My lender will complete the process and send me your loan options. The whole process only takes a few minutes. Did I explain that well enough?

Take ownership of the entire process by using words like "I have you qualified", "we have to meet", "I have a commitment", "my lender", "they will send me", and "did I explain that". If you incorporate these phrases you will convince your prospect that you are uniquely qualified to get the deal done.

Under no circumstance should ever say, "let me see what I can do, and then I will call you back." Remove this phrase from your vocabulary.

If You Get Voice Mail Leave A Strong Message

The purpose of the voice message is to get the prospect to call you, not to set an appointment or sell them a car.

"Mr. Smith, this is Dave LaLonde, I'm processing the auto loan application you submitted online today. I just got a call from my funding source and they are willing to extend you a line of credit to purchase a car. I'll be out of the office for a few more hours. If you would like to get this done today, call me on my cell phone at 000-000-0000."

Don't Pull a Credit Report or Submit the Deal until they Visit the Store

This is the most challenging step. Over the years, scores of sub prime managers have told me "I'm getting them approved; I just can't get them in." This is easy to fix. Only submit a credit application to a lender at the time you meet with the prospect, never before. In fact, do not pull a credit report until they are in your store. This process will:

• Improve your lender look to book ratios
• Free up more time to work real deals
• Create a more positive phone conversation and increase the likelihood that they visit your store
• Prevent your prospect's name from being sold to a competitor as a trigger lead
• Lower your credit bureau bill

Commit to the Prospect

Each of us with a few deals under our belt can recall a time we were so passionate about putting a specific deal together that we got it done through sheer will power.

• A deal we called the lender back numerous times with a fresh idea;
  • "Hey I was just thinking, on the Smith deal, what if I were to..."
• A deal we got a few more dollars for the trade from the used car manager.
• A deal we bumped the customer for more money down.
• A deal we negotiated a lower payoff on the trade and a lower fee with the lender.
• A deal we put together, when no one else could, because the customer was waiting at the store and we told him or her we would get the deal done.

If you are currently using Process 2 or 3 above, this new process may move you outside of your comfort zone. If you try it though, I expect that you will get more people in front of you, you will work each deal more passionately, and you will sell more cars on fewer leads.

Published in World of Special Finance Magazine