Category Archives: Blog

Automakers Break Records with March 2013 Sales

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After 2012′s record-breaking sales, it seemed like the auto industry would eventually hit its peak and plateau. Now that March is over, though, it hasn’t happened yet. For nearly every automaker, March 2013 sales were significantly higher than one year ago.

Cadillac saw the highest increase in volume of sales with a 49 percent increase compared to March 2012, but Ram and Dodge also did extremely well with 24 percent and 15 percent increases respectively. Ford was the top seller overall with 229,335 units, though it was on the lower end of sales increases with a 6.86 percent increase.

Going into April, dealerships across the country need to dive in and realize that they could see some of their best numbers in years this spring. Now that auto loans are more accessible than ever, even to consumers with poor credit, dealerships simply need to focus on getting car shoppers in the door. Americans are ready to buy, and with the right promotion and customer outreach, they are almost guaranteed to do well.

Are you looking to move more inventory, increase profits for service and parts, and bring in more foot traffic to your dealership? Special Finance Group’s Complete Special Finance Solution can give you all that and more. Go to http:///www.specialfinancegroup.com to learn more, and connect with Special Finance Group online through Facebook, Twitter, and LinkedIn!

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Survey: Dealerships Responding Quicker to Internet Leads

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A new mystery shopper survey shows that dealerships who respond quickly and effectively to internet leads are getting an edge over the competition.

According to the survey, auto dealerships have a quicker response time to internet leads. Half the time, salespeople respond to customer inquiries within 30 minutes, down from 1 hour two years ago. Even busy dealerships have set up automated e-mail responses to internet inquiries so that the person gets a response right away if the dealership is too busy to call in the next hour.

One problem that arises for dealerships receiving internet leads and inquiries is that it takes time to contact these potential customers, answer their questions, and convince them to stop by for a test drive. Dealerships that had a quick response time weren’t always the best when it came to thoroughly answering questions, while other dealerships had the exact opposite problem. Mini had a 15 percent non-response rate with leads, but they got a 63 percent satisfaction rate for answering customer questions, 19 percent higher than the industry average. Besides that, the sales team has to take care of customers walking in the door and can’t always help every internet lead satisfactorily.

As part of Special Finance Group’s Complete Special Finance Solution, dealerships get the advantage of a fully-staffed business development center which tracks internet leads, answers customer questions, and schedules appointments to stop by the dealership. With Special Finance Group, you can focus attention on the customers coming through the door while still getting the most out of internet leads.

Want to learn more about the Complete Special Finance Solution? Go to http://www.specialfinancegroup.com, and connect with Special Finance Group on Facebook, Twitter, and LinkedIn!

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New Dealership Technology and Keeping Your Customers’ Information Safe

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Not that long ago, car dealerships didn’t have to worry about customer information being compromised or stolen. Applications, insurance information, and other sensitive documents would get filed away and locked up, and there was no way to get the information unless someone broke into the dealership. Nowadays, paper filing is more and more going by the wayside, and it is happening for good reason. Looking through filing cabinets can get tedious, and if someone makes a mistake in filing, it can take hours to find what you are looking for. Plus, paper documentation can get torn, worn-out, or destroyed.

Nowadays, computer networks are taking the place of filing cabinets, and dealerships use the internet to pull credit applications, check lead information, manage insurance records, and much more. Unfortunately, not every dealership has taken the necessary steps to protect this sensitive information that is shared between computers and over the internet, and some dealerships’ privacy notices are so outdated that the dealership could be vulnerable to a lawsuit.

In a recent write-up for Special Finance Insider, Mark Bross detailed how Franklin Budget Car Sales got in trouble for this scenario. Franklin shared customer information on a peer-to-peer network without putting the proper security measures in place, and they did not provide consumers with an opt-out so their information would not be shared with third parties. Franklin eventually settled with the Federal Trade Commission and agreed to biennial data security audits from a third party for twenty years as well as numerous other measures meant to correct their security flaws and warn other dealerships not to make the same mistake.

Take a lesson from Franklin Budget Car Sales, and don’t make the same mistakes. Update your privacy notice, and make sure it reflects the latest consumer protection laws. If you use a peer-to-peer network, take the steps to make it secure and properly train employees how to use it so you don’t put customer information at risk. New technology is great, and peer-to-peer networks can be a useful tool to any dealership. Problems arise, however, when dealership jump in without understanding it first.

Have you heard about Special Finance Group’s Complete Special Finance Solution yet? Go to http://www.specialfinancegroup.com to learn more, and connect with Special Finance Group on Facebook, Twitter, and LinkedIn!

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Backdating Deals: A Costly Mistake

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For years, backdating sales contracts was a common practice for dealerships across the country. They used to backdate to get in on time-sensitive manufacturer incentives or because they wanted to hit a sales target.

Almost three years ago, a California appeals court ruled against a San Diego dealership for backdating contracts and ordered that the dealership pay $50 to every member of the class action lawsuit. Additionally, they had to pay around $400,000 in legal fees.  The court ruled that backdating violated the Truth In Lending Act since the buyer will have to pay additional interest, and if the APR changed as a result of backdating, the dealership will be violating the law unless it falls within one-eighth of 1 percent of the calculated rate.

According to Gil Van Over, writer for Wards Auto, the auto industry has not taken the proper steps so that dealerships will not be tempted to backdate a deal. Automakers have charged back on incentives when a contract date is just outside of the incentive deadline. Some dealerships have just argued that the court was wrong in its ruling and that if a car buyer is driving the car already, they should be paying interest. Fortunately, automakers are starting to catch up, and if the dealership reaches out to factory auditors and provides proper documentation, the dealership will not be charged back on incentives. As to arguing that the court ruled incorrectly, the law is the law. The court’s job is to interpret the law. Just because you disagree with the court’s interpretation of the law doesn’t mean that your dealership will not be subject to that same law and its interpretation.

Backdating is tempting, but it is a costly mistake made by too many dealerships. Be vigilant, and make sure your dealership isn’t making this mistake!

Special Finance Group is ready to help your dealership bring in more customers and close more quality deals. Find out more about our Complete Special Finance Solution here or go to http://www.specialfinancegroup.com. You can also connect with Special Finance Group on Facebook, Twitter, and LinkedIn.

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CFPB to Oversee Car Dealerships In New Year

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It has been 3 years since the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law. Now in 2013, the Consumer Financial Protection Bureau (CFPB) is taking a more active role in overseeing auto loans and car dealerships.

In a few short years, the CFPB has taken on credit card companies, the big 3 credit bureaus, and predatory lenders. They have informed the public of consumer protection laws and issued rules to protect homeowners from foreclosure. As they turn their focus to the auto industry, though, some people in the industry are jumping to conclusions, imagining regulators breathing down their necks and slapping dealerships with fines every time someone forgets to dot an “i” or cross a “t.”

In response to these concerns, the CFPB has reached out to dealership groups and even sent out a representative Richard Hackett to the National Automobile Dealers Assn. convention in Orlando, Fl. At the convention, Hackett explained that the CFPB expects some human error in dealerships, but their main goal is to spot patterns of non-compliance in dealerships. The CFPB is trying to strike the right balance of alleviating fears while also letting dealerships know that they aren’t going anywhere. Dealerships will need to learn to work with the CFPB and stay current on consumer laws and regulations. As long as they are willing to take those steps, there is no need to worry.

As part of the Complete Special Finance Solution, Special Finance Group works with their associated dealerships to keep the special finance reps current on all new consumer protection laws. Compliance is more important than ever, and having the Complete Special Finance Solution gives your special finance department yet another advantage over the competition.

Want to learn more about how Special Finance Group can work for you? Go to http://www.specialfinancegroup.com today, and connect with Special Finance Group on Facebook, Twitter, and LinkedIn!

1 in 4: Why 25 Percent of Car Shoppers Are “Still Shopping”

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Every day, dealerships have customers walk in and out the door without buying a car. It is a fact of life. There is no way to get every person who comes into the dealership to purchase a car. No dealership will ever have a perfect record, but this isn’t a reason to get lax or not to strive for improvement. A new consumer survey just released might shed some light on where dealerships are losing the sale.

According to the survey conducted by CAR-Research XRM, the top 12 reasons why consumers aren’t buying are as follows:

25 percent: Still Shopping
15 percent: Price
13 percent: Financial
10 percent: Inventory
10 percent: Style
5 percent: Payments
4 percent: Sales Staff Issues
4 percent: Trade
3 percent: Decision Maker Absent
2 percent: Time Constraints
1 percent: Negative Equity

1 in 4 customers leave the dealership with the vague response that they are “still shopping.” The price, financial issues, and inventory are still high on the list, but a full quarter want a car but need an extra push of urgency. They don’t feel any loyalty to this dealership over any other dealership, and they are still chasing that idea that the next dealership will offer a better deal.

With Special Finance Group’s Complete Special Finance Solution, partner dealerships will have more customers walking in the door and ready to buy. Our telemarketers reach out to consumers who are ready to buy and they establish a sense of excitement and sense of urgency. These customers walk into the dealership with their financial documents on-hand, ready to buy a car that day. Special Finance Group turns “still shopping” into “done shopping.”

Find out more about Special Finance Group and the Complete Special Finance Solution by going to http://www.specialfinancegroup.com, and connect with Special Finance Group on Facebook, Twitter, and LinkedIn.

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No License, No Car: Why Dealerships Cannot Sell Without a Driver’s License

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Last week, Gil Van Over at Ward’s Auto published an article “Believe It: Valid ID Needed to Buy Car.” In the article, he explains why dealerships cannot (and should not) sell a car if the purchaser does not have a valid driver’s license. As he puts it, “You can’t clear airport security by showing an expired driver’s license. You can’t rent a car with an expired driver’s license.” Why should you be able to buy a car without a valid driver’s license?

There are a number of problems that can arise if a dealership sells a car to a person without a valid license. The buyer might have multiple DUI convictions which automatically bans them from registering a vehicle. In that case, the dealership will have to pay off the loan. In another case, a buyer might be using someone else’s social security number and personal information that they purchased illegally, but their story will fall apart if asked for a valid driver’s license.

State and federal laws including the Patriot Act and the Red-Flags Rule require valid identification from the potential buyer. These laws also require that the dealership be vigilant and do their part to battle identity theft. At Special Finance Group, our call center representatives speak with potential customers every day. When they set appointments at associated dealerships, our representatives require that customers bring identification and verification of income including but not limited to their driver’s license and social security card. This way, we do our part to battle identity theft and protect our associated dealerships.

Find out today what Special Finance Group can do for you! Go to http://www.specialfinancegroup.com and check out our Complete Special Finance Solution! Be sure to also connect with Special Finance Group on Facebook, Twitter, and LinkedIn!

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Chrysler – Banco Santander Partnership Likely to Finalize Soon

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Last year, it was reported that Chrysler’s contract with Ally Financial would be ending in April 2013, and there was speculation as to who Chrysler would choose to take over their in-house financing. While nothing has been finalized yet, it is looking very likely that Chrysler will be partnering with Banco Santander to manage their in-house financing.

According to the Wall Street Journal, sources who have been part of the discussions say that a deal could be solidified by the end of January or early February. Wells Fargo, GE, U.S. Bancorp, and JPMorgan Chase were also supposedly considered to take over for Ally Financial, but it is possible that Chrysler favored Santander having worked with them previously on sub-prime auto loans

Prior to their partnership with Ally Financial, Chrysler handled their financing through Chrysler Financial. As part of their agreement with the U.S. government, though, Chrysler partnered with Ally Financial and ended Chrysler Financial.

This is great news for Chrysler Jeep Dodge Ram dealerships looking to boost their special finance department. As mentioned above, Chrysler worked with Santander on sub-prime auto loans, and considering that there were more sub-prime auto loans in 2012 and lower delinquency rates for those loans, it looks like a Chrysler partnership with Banco Santander would be advantageous to dealerships and car buyers alike.

Are you looking to boost your special finance department in 2013? Contact Special Finance Group today, and learn more about their Complete Special Finance Solution. You can also connect with Special Finance Group on Facebook, Twitter, and LinkedIn.

From Online to On the Lot: An Easier Car Buying Experience

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The internet has unquestionably changed the way we shop for cars. Customers start shopping long before they walk into a dealership, everything from researching makes and models online to reading dealership reviews on Google and Yelp. More than ever, car shoppers will walk into a dealership with a clear idea of the car they want and the price they want to pay.

A recent survey from Accenture shows, however, that car dealership websites are not effectively helping potential car buyers to move forward through the car buying process. Instead, 73 percent of respondents said that browsing dealership websites made them more likely to turn off the computer and use other sources in their car search.

Overall, the results of the study showed that car shoppers want to complete most of the work before they go into the dealership. They want dealerships to make the process from online researching to purchasing the vehicle in-person as seamless as possible, and they want consistent customer service every step of the way.

The great news is that with the help of Special Finance Group, any dealership can streamline their car buying process and give customers the seamless internet-to-dealership experience that they clearly want. Special Finance Group’s Complete Special Finance Solution includes a dedicated website www.ApprovedLoanStore.com where car shoppers can fill out a secure online auto loan application and read glowing testimonials from real customers. Within 24 to 48 hours, the applicant is contacted by a representative and set up with an appointment at an associated dealership. It simplifies the car buying process, increases foot traffic in the dealership, and gives a nice boost to the parts and service department, and this is only one part of the Complete Special Finance Solution!

You can read more about the benefits of Special Finance Group’s Complete Special Finance Solution by going to http://www.specialfinancegroup.com or connect with Special Finance Group on Facebook, Twitter, and LinkedIn.

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2013: Reviewing Your Dealership’s Resolutions for the New Year

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2012 was an outstanding year for the auto industry with strong sales numbers despite setbacks like Hurricane Sandy. Every dealership across America had the potential for their best year since the start of the recession. The question is, though, how did your dealership perform?

Looking back at the goals your dealership set for 2012, how close did you come to meeting those goals? More importantly, did you do everything you could in order to meet those goals? Many dealerships aren’t taking advantage of the opportunities right in front of them such as an efficient special finance department. A well-run special finance department alone can bring in additional business. Not only will the dealership sell more cars, they will also bring in more business for the normal sales and service/parts department.

What about dealerships that already have a special finance department? Well, if a special finance department isn’t running properly, there is almost no point in having one. Look at your dealership’s special finance department if you have one, and ask yourself if there is room for improvement. Is there a steady stream of customers coming in the door, or are you slogging through sub-par leads hoping to find some real customers?

Fortunately, Special Finance Group has Complete Special Finance Solutions suited for dealerships that currently have a special finance department and those who do not have a special finance department. With Special Finance Group, partner dealerships get a fully-staffed business development center which tracks all leads and advertising, sets appointments for potential customers, and manage general customer service. Additionally, partner dealerships will have two special finance experts at their location to manage all in-house operations, and Special Finance Group hosts monthly meetings to review dealership performance and educate reps about the latest consumer laws to maintain compliance.

Want to learn more about Special Finance Group and their Complete Special Finance Solutions? Go to http://www.specialfinancegroup.com, and connect with Special Finance Group on Facebook, Twitter, and LinkedIn.

Image courtesy of Stuart Miles / FreeDigitalPhotos.net