Tag Archives: 2011

New Colorado Law Protects, Clarifies Dealership Rights

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Last Wednesday, Senate Bill 265, which clarifies and re-enforces current auto dealership protections, was signed into law in Colorado.

According to F&I Magazine, the new law will update dealership protections passed in 2009, 2010, and 2011. These protections included limiting manufacturer-mandated renovations as well as giving dealerships the right of first refusal in the case of a manufacturer filing bankruptcy, closing a location, and then opening a new franchise in the area.

The biggest problem that dealerships ran into when reinforcing the new protections was manufacturers claiming that the laws didn’t apply to franchise agreements signed before the law was passed. Dealerships that ran into this problem often didn’t want to cause more trouble with the manufacturer, so they didn’t speak up. Fortunately, a few spoke up including Don Hicks, CEO of Shortline Auto Group, and they prompted the bill’s introduction.

One of the bill’s sponsors Colo. Sen. David Balmer praised Governor Hicklenlooper for signing it into law, stating, “Now Colorado will lead the country in protecting the free-enterprise rights of auto dealers and their car-buying customers.”

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

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Subprime Auto Loan Competition Heats Up

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A report from Automotive News suggests that subprime auto loan conditions right now are so great that they are unlikely to last long-term. While conditions are still so good, though, special finance departments are seizing the opportunity, and competition is more getting intense by the day.

In the article, industry figures agreed that the subprime auto loan business is booming, and more people want in on the action. Jim Landy of CarFinance claims that this year is far more competitive than last year, and Gary Lorenz of Global Lending Services recently commented that competition has grown almost 10 times since last March and observed, “Everybody is getting more aggressive.”

With prime conditions and fierce competition, special finance departments need every advantage they can get. Special Finance Group gives dealerships that edge with their Complete Special Finance Solution. With the Complete Special Finance Solution, you can get two special finance experts to run day-to-day operations, a highly-trained call center that will qualify leads and set auto loan appointments, a marketing team that generates more quality leads, and much more.

To learn more about the Complete Special Finance Solution, go to http://www.specialfinancegroup.com, and connect with Special Finance Group online on Facebook, Twitter, and LinkedIn

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September: Game Changer for 2012 Auto Sales

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August was a strong month for auto sales, continuing the trend of upward sales that hasn’t let up in 2012. General Motors, Ford, and Chrysler all had significant bumps from August 2011 with anywhere from 10 percent to 25 percent increases in total sales. In September, however, sales strategies need to change for dealerships across the country as the new line-up rolls in and the used inventory, including the 2012 line-up, need to be moved off the lot.

September has already been called the best month to buy a used car by Time Magazine’s MoneyLand, and with high school and college students heading back to class, young drivers will be looking for an affordable first car. It is a time that dealerships have the potential to make a lot of sales on used cars, but since most dealerships will have their minds on the new car launches, they might miss out on these sales.

Here is where Special Finance Group can help and make sure a dealership makes the most of this extremely promising month. With the Complete Special Finance Solution, dealerships can move more of their used inventory without taking away time from the dealership’s other priorities. Special Finance Group’s call center is devoted to contacting potential customers, screening them based on information included on their application, and then setting up an appointment at the dealership. From there, two special finance experts will meet with these appointments, set them up with financing, and get them into a new or used car depending upon what they qualify for. Quite simply, the Complete Special Finance Solution helps dealerships move more inventory with less hassle.

Does your dealership have the Complete Special Finance Solution yet? Learn more by going to http://www.specialfinancegroup.com, and connect with us by liking Special Finance Group on Facebook, following Special Finance Group on Twitter, and checking Special Finance Group on LinkedIn.

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Credit, Auto Sales Top Last Year’s Customer Complaints

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What are the two biggest customer complaints of last year? One might guess landlord disputes, billing issues, or false advertising, but in actuality, customers’ top complaints were regarding car sales/repairs and credit/lending problems.

Car dealerships, especially those dealing with subprime auto loans, should be concerned about these complaints. After all, their day-to-day work encompasses both credit and auto sales. They are extremely vulnerable to customer complaints, even if they are doing a great job.

Why do customers complain more about car sales and credit-related issues? Well, our culture has been hardened and skeptical of car salesman, and time and again the credit reporting industry has confused consumers and punished them for not understanding their credit health. People come into a dealership with ammunition, ready to go to battle with the sales person, and if they don’t get a premium interest rate, they sometimes take it personally. Why don’t they deserve a better rate? Why can’t they get the car they want? Will they ever have the chance to rebuild their credit history?

Dealerships in the Special Finance Group network have a definite advantage over other dealerships when it comes to subprime auto loans. First, Special Finance Group dealerships don’t have to spend hours every day calling leads and trying to get customers in the door. Instead, Special Finance Group’s call center contacts those leads and schedules appointments for potential customers. From the start, the customer feels like a priority before they even step in the door. The Special Finance Group representative builds a sense of excitement for the appointment, and rather than waiting around for a salesperson to notice them, the customer can go to their scheduled appointment and get on with their day. It makes the process easier and more pleasant for the customer, and it is more likely that the customer will have a positive experience buying a car, even if they have poor credit or no credit.

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. You can also contact Special Finance Group by phone at 212-239-7270 or by e-mail at info@specialfinancegroup.com.

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Defaults Down for Auto Loans, New Yorkers

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In some good news for New York auto dealerships, loan defaults continued to drop in May down to a 1.03% default rate.

Loan defaults overall have dropped almost continuously in the past year, but auto loans in particular have hit record lows. Last month’s 1.03% rate was the lowest rate in 8 years, even as sub-prime loans were made more readily available to American consumers. Interestingly enough, the New York City area has also seen a drop in overall defaults from 1.94% in May 2011 down to 1.61% in May 2012.

These figures are very promising for car dealerships in the New York City area, especially those with a special finance department. Lenders are ready to work with car shoppers who don’t have great credit or even good credit. In return, consumers are repaying those loans and lowering the risk for car dealerships to keep working with consumers with low credit or no credit.

Is your dealership making the most of this perfect car buying climate? Special Finance Group wants to improve and supplement your dealership with our Complete Special Finance Solution which includes two in-house special finance experts, access to our fully-staffed business development center, and much more. To learn more about the Complete Special Finance Solution and what Special Finance Group can do for you, go to http://www.specialfinancegroup.com. Also, you can find the latest news from Special Finance Group online by liking Special Finance Group on Facebook and following Special Finance Group on Twitter.

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Subprime Auto Loans in an Upswing

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Recent studies are showing that dealerships that are not putting their resources behind special financing are missing out on a prominent and steadily growing market.

According to Automotive News, there has never been a better time to get in on special financing. Interest rates are dropping, even for high-risk loans, and 41.5 percent of auto loans are subprime auto loans. Only a few years ago, subprime auto loans were closer to a third of all auto loans, and now they are creeping up to half. Besides that, Standards and Poor has estimated that subprime loans in general will be higher this year. In 2011, subprime loans were 24 percent of all loans, and in 2012, they are expected to make up 25 to 30 percent of all loans.

With these numbers, putting resources into special financing is a no-brainer for any car dealership, and Special Finance Group can help dealerships make the most of their special finance departments. Special Finance Group brings years of experience as well as the latest in internet marketing and social media tools to bring in new clientele and hundreds of thousands of dollars in additional revenue.

Read more about Special Finance Group’s Complete Special Finance Solution here and find out what it could do for your dealership. Also, keep up to date on the latest from Special Finance Group by liking us on Facebook here.

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Call Centers Aid Dealership Come-Back

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Everyone suffered when the economy collapsed, but dealerships felt the brunt of it harder than most. The car industry was dealt a heavy blow and it took the government stepping in to bail them out.

Since then, the economy has turned around, and so has the auto industry. 2011 turned out to be a fantastic year for sales, with January and February continuing this trend. Dealerships have been brought back from the brink and are now being taxed with keeping up with the increase in demand. The question exactly what steps are needed to get back to the level they were at before the recession.

A recent post on AutomotiveDigitalMarketing.com says that answer lies in the call center. It’s hard not to see why considering the help they can supply. For example, callers that hang up on hold or go to voice mail get reduced by 26%. There’s an increase from 29% to 55% in connected sales calls. Service appointment rates on inbound calls go from 45% to 65% Best of all, follow up of calls for people who haven’t made appointments doubles from 20% to 40% with a call center.

Still, in order to get such a positive response from a call center, it takes more than just people calling on telephones all day. It takes the highest quality people making the phone calls, making good impressions on customers to keep not just new, but also old clients from leaving.

That’s where Special Finance Group agrees. In order to get the best results you need the best employees on staff. The SFG staff strive everyday to overcome negative stereotypes typical to the call center environment. With an operations manager who has over 21 years of experience in customer contact solutions and an experienced sales staff, SFG offers only the best in call centers. Sign up today to see just how much they can improve your dealerships special finance department. Go online for more information or call today 212-239-7270. Be sure to follow on Facebook for all the latest news.

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Car Sales Rise as Delinquency Rate Drops

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With car sales improving due to the economy seeing better times, it also translates to people being better about paying their bills on time. According to Transunion, the fourth quarter of 2011 was only the third time in the past 10 years that the national auto delinquency rate did not rise. According to the report, the rate of delinquency rate of borrowers 60 days or more days actually decreased for the ninth consecutive quarter.

Petere Turek, the automotive vice president of Transunion’s finance services said about the decrease, “Except in 2009 where there was no change and in 2003 where there was about a 4% drop, auto delinquency rates have shown upward movements between third and fourth quarters averaging in excess of 5%, ending the year flat is particularly interesting, because the number of new auto loans coming onto the books has consistently increased since the end of the recession, a primary driver of which has been an expansion in lending to consumers in the subprime market.”

 Transunion predicts that the delinquency rate will remain the same between the end of 2011 and 2012. They also predict that the auto industry will see an increase in demand for new and used vehicles. They definitely see that as people start to go back to work, they will be paying their bills.

 This is where Special Finance Group comes in. They work with dealerships to help generate more traffic. People are ready to get into new and used cars and signing up with SFG’s program is the way to make sure they are going to your dealership. Call today at 212-239-7270 or go online for more information. Like them on Facebook as well to see all the latest news.

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Increase in Car Sales Spurred by Special Finance Group

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It is easy to forget that just a few short years ago, the auto industry was really struggling, enough so that the government had to step in. Despite the criticism it received at the time, even the people against the government intervention have a hard time denying that the industry has been doing a good job of bringing things around. Auto sales for the year of 2011 were some of the best in a long time, and January should see more improvement. They are improving so much, in fact, that it’s starting to cause a problem with keeping up with the demand.

In order to meet this new increase in sales, auto makers are adding more shifts and hiring thousands of workers. Having already added 38,000 jobs in 2011, they are looking to add another 13,000 this year. The auto makers have been cautious of their hiring. However, and wanted to make sure they don’t over-reach and put themselves back in the hole.

Automakers are doing everything they can to get as far away from their bankruptcy and bailout as they can. The increase in demand is why Special Finance Group is successful with their program. They bring people in who are struggling with credit issues and help them drive home in the car they want. The sales spike being enjoyed as a whole by the industry is because more and more people are looking to get back on the road. Consumers with challenged credit are SFG’s specialty.

Sign up today and you can generate additional traffic into your dealership. Give SFG a call at 212-239-7270 and visit them online for any additional question. Follow on Facebook to stay up to date on the latest news.

 

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Auto Lending in High Demand as Market Improves

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The economy really did a number on credit loans. According to an article on Autonews.com, just three years ago, during the height of our current economic recession, even someone who had a salary of $400,000 and a good credit score of more than 700 wouldn’t be able to walk out of a dealership with the financing for the car he wanted.

Michael Mosser is the general manager of Chevrolet and Cadillac stores in Ann Arbor, Mich. He added to the conversation, “The world is upside down compared to then. Today, somebody with a 500 credit score I can get approved and in a Malibu.”

Lenders were forced to cut back on extending credit when the collapse happened. This in turn was a driving factor for the reason why the major car companies, such as General Motors and Chrysler, saw sales that were the lowest they had seen in about 3 decades. It didn’t take long after that for both companies to file for bankruptcy.

As the economy improves however, so does the demand for cars. Due to this increase, bank lenders such as Bank of America and Capital One Financial Corp, are working to get car buyers approved fast and with great rates to keep up with the market. In the US, vehicle sales have risen 10 percent to 12.8 million last year. January turned out to be the one of the best sales month automakers have seen since the cash-for-clunkers program in 2009.

With lending seeing such an increase and banks doing everything they can to keep up with subprime borrowers, now is the best time to sign up for Special Finance Group’s program. Contact us today at 212-239-7270 for any questions. Make sure to follow on Facebook as well so you can stay up to date on all the latest news and offers.

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