Tag Archives: 2012

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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The “Silver Bullet” of Special Finance

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In his recent article “In Search of Silver Bullets,” special finance expert Greg Goebel answered the question he gets asked most often when talking to special finance departments across the country. Over and over again, dealerships ask him how they can get more good quality leads. More often than not, the answer is not more money or more leads. The answer is devoting time and creative energy towards making the most of those leads.

While Goebel doesn’t believe in a “silver bullet” answer, he breaks down his overall strategy into 5 parts, and coincidentally, it looks a heck of a lot like our strategy at Special Finance Group.

  • TRACKING – Tracking leads is absolutely essential to getting the most for your lead money. Special Finance Group tracks leads from first contact with the customer to delivery. While some dealerships only worry about leads that turn into sales, we keep track of the lead source, the representative who set the appointment, and other pertinent information on all our leads, and based on that information, we make adjustments to improve.
  • BUDGET – Putting together a proper budget means more than figuring out how much a dealership is spending on leads and inventory. A successful special finance department will put money and resources towards their marketing, and a dealership with Special Finance Group doesn’t have to worry about that. This all leads to the next part, “Be Different.”
  • BE DIFFERENT – The marketing team at Special Finance Group is comfortable using traditional advertising media as well as social media and online advertising venues. We have established a strong online presence through Facebook, Twitter, YouTube, and LinkedIn among other sites, and our original content targeted at sub-prime credit auto buyers makes us and our associated dealerships stand out.
  • SEARCH – Along with our social media outreach, we work to maintain a solid reputation online. We work with our dealerships to post text and video testimonials of customers online and address any negative feedback quickly.
  • COMPLY – Compliance has always been a priority at Special Finance Group, and our measures go above and beyond the dealership norm.

Greg Goebel claims that there is no “silver bullet” for special finance, but after looking at his five-part strategy, it is clear that if there was a silver bullet, it would be Special Finance Group’s Complete Special Finance Solution.

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

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November Auto Sales Surge, Set Up Strong End to 2012

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November might have gotten off on the wrong foot with Hurricane Sandy and Nor’easter, but it ended with a bang, bringing in bigger sales and shocking auto industry analysts.

Overall, auto sales in the United States were up 15 percent in November to 1.14 million, and the annualized industry sales rate was 15.56 million compared to 13.6 million last November. As predicted, many of the car shoppers who were planning to buy their car in October but were prevented by weather conditions still made their way back to dealerships in November.

Some of the big winners of November were Honda with sales up 39 percent, BMW up 45 percent, VW up 29 percent, and Toyota up 17 percent. Honda’s Executive Vice President of Sales John Mendel called November’s numbers “a true sign that our business has recovered” and predicted that they would see a “strong finish” in 2012.

Going into the last month of 2012, dealerships have the potential to move a lot of inventory and post record sales numbers, and Special Finance Group can help your dealership bring in even more business with its Complete Special Finance Solution. A highly-trained telemarketing staff, better leads, and social media outreach to find more potential customers; these are only some of the tools available to Special Finance Group’s associated dealerships. To learn more about Special Finance Group’s Complete Special Finance Solution, click here or go to http://www.specialfinancegroup.com.

Want to learn more about Special Finance Group? You can like Special Finance Group on Facebook, follow Special Finance Group on Twitter, and connect with Special Finance Group on LinkedIn!

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Dealership Compliance: How Special Finance Group Goes Above and Beyond

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At dealerships across the country, compliance is a big concern, or at least it should be. A dealership’s first goal should be creating a deal that makes the customer happy while satisfying the dealership’s bottom line and the letter of the law. Now that the Consumer Financial Protection Bureau is keeping their eyes on lenders and consumer deals across the country, though, dealerships that get sloppy on their documents could face the threat of legal action.

The CFPB have promised to start overseeing the credit bureaus and the debt collectors alike, and I am fairly certain that they will focus more of their attention on car dealerships in the next year. That being said, there is no more room for error or the usual excuses for why a deal isn’t fully compliant. The time for excuses is over.

From the start, Special Finance Group has taken steps to ensure that the deals done at their associated dealerships are fully compliant. The initial training for all special finance reps is extremely thorough, but Special Finance Group goes the extra mile with monthly meetings with all special finance reps. These meetings serve as a refresher course and additionally cover the latest developments and changes in the law.

Aside from thorough training, there are other safeguards in place to ensure that deals are compliant including random monthly audits.  If there are any potential issues, Special Finance Group catches them right away and sets it right before it causes problems for the dealership or the financial institution. Everyone is held accountable for their actions.

Compliance training and safeguards are just one part of Special Finance Group’s Complete Special Finance Solution. Click here to learn more about Special Finance Group’s dealership services, and learn more about Special Finance Group by checking out our website and following us on Facebook, Twitter, and LinkedIn.

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Auto Industry: How Did Hurricane Sandy Affect Sales Numbers?

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November is reaching an end, and auto industry analysts are looking back at Hurricane Sandy’s effect on sales in the final days of October and determining if there even was a negative or positive effect on sales numbers.

As surprising as it is, the industry as a whole still posted a very strong October, even as many dealerships had to close their doors for days or weeks. Sales from earlier in the month and from other areas of the country were strong enough to make October 2012 the best October since before the recession. Volkswagen posted a 22 percent year-over-year gain, and Chrysler, Toyota, and GM had 10 percent, 16 percent, and 5 percent gains respectively.

Industry analysts have estimated that the storm delayed tens of thousands of sales, which sounds like bad news at first. They predicted, however, that these auto sales will still happen in the coming months, and after the storm, there will be even more potential car buyers as many people are replacing their damaged or lost cars after the storm. In other words, the auto industry might have seen a short-term set-back with the storm, but it will not slow down the upward sales trend in 2012.

Could your dealership be bringing in more sales, particularly with sub-prime credit customers? Go to www.specialfinancegroup.com and learn more about the Complete Special Finance Solution! Also, get the latest news from Special Finance Group by liking Special Finance Group on Facebook, following Special Finance Group on Twitter, and checking out Special Finance Group on LinkedIn!

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Paperless Auto Transactions: The Way of the Future

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In the next few years, the auto industry will be turning a little greener as dealerships move from paper transactions to electronic documents

According to Wards Auto, car dealerships are beginning to utilize e-transactions, even letting customers use electronic signatures instead of signing a paper document. Filing cabinets will become computer file folders and external hard drives. Documents can be password protected, and there will be less risk of sensitive customer information being stolen.

While this all sounds well and good, many dealerships will not start using e-transactions for another couple of years. Running a successful dealership is hectic enough, and it is tough to find the time to learn a whole new way of processing transactions, not to mention training staff how to do it as well. However, there are several compelling reasons why dealerships need to make the time to learn and train how to process paperless transactions.

First, as stated before, it is more secure for the customer. Paper documents are easier to steal and can be damaged or destroyed in a fire, flood, or other severe weather. They also require much less storage space. Thousands of transactions documents can be stored on a hard drive compared to bulky filing cabinets.

Secondly, paperless transactions are more environmentally friendly and cost-effective. Dealerships can spend less money on paper, ink, and other printing supplies, and they can brag that the dealership has gone green.

Finally, electronic documents are the way of the future. At some point, dealerships will have to get on board. By continuing with business as usual, they are just delaying the inevitable and letting their competition get a head-start. The dealerships that learn paperless transactions now will have a decided advantage later on.

Looking for more news and tips for your dealership? Check out Special Finance Group on Facebook, Twitter, and LinkedIn, and go to http://www.specialfinancegroup.com to find out about our Complete Special Finance Solution and how it can benefit your dealership!

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When Disaster Strikes: Special Finance in the Wake of Hurricane Sandy

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Hurricane Sandy just hit the New York/New Jersey area a little over a week ago, and dealerships are struggling with lower sales, customers who are displaced or strained financially, or just now getting their dealership’s power back on. The New York Times is predicting that the timing of the storm at the end of October could have long-reaching consequences for the auto industry. Even though it is tough to be optimistic in these times, though, pessimism cannot show through in your work. Here are a few tips for giving your customers a positive buying experience in the weeks following Hurricane Sandy.

  1. Get Back to Normal
    Strive to give your customers a normal, positive car buying experience. For most dealerships, business as usual will be a challenge in itself, but try to go that little bit above and beyond.
  2. Don’t Push Too Hard
    You are probably feeling antsy and want these customers to just buy a car already, and it is fine to feel that way. Many dealerships have been shut down since last Monday, over a week’s time, and you want to make up for lost time. Do not project those feeling to your customers. They will pick up on it and believe that you see them as merely walking, talking dollar signs.
  3. Be Patient
    Now, more than ever, you need to listen to customers, be patient with them, and show them respect. Treat them the way you want to be treated, especially if they can’t get approved. They took the time to come into your dealership, and they might still be recovering from the storm. Even if they don’t leave with a car, make sure they still walk out the door feeling good about the experience.

There is good news for dealerships that have Special Finance Group’s Complete Special Finance Solution. Other special finance departments have had to divide their time between getting customers in the door and helping customers in the dealership, but Special Finance Group’s call center was scheduling appointments for their dealerships right away. Less than a week after the storm, we had customers ready to buy walking into our associated dealerships. In the aftermath of a disaster like Hurricane Sandy, Special Finance Group’s Complete Special Finance Solution can make all the difference and put a dealership back on the path to normalcy.

Do you have the Complete Special Finance Solution yet? Learn more at http://www.specialfinancegroup.com, and be sure to like Special Finance Group on Facebook, Twitter, and LinkedIn.

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Special Finance: Why Your Call Center Matters

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A special finance department is nothing without customers. Great inventory, a perfected pitch, and rigid compliance don’t mean much if people aren’t walking in the door, and the most effective way to get potential customers in the door is by simply picking up the phone.

A call center devoted exclusively to setting appointments is absolutely essential to any special finance department. It isn’t enough to double up the sales team’s responsibilities and put them on the phones for a few hours a day. They need to be working with customers and worrying about selling cars. Besides that, sales people tend to get too in-depth and try to sell the person over the phone.

A good phone rep will leave a sense of mystery and get the customer excited about the appointment instead of going overboard with interest rates, down payments, and other details. This isn’t just our opinion. In a recent article, Special Finance Insider Greg Goebel wrote, “I have proven over and over again that a well-managed call center/BDC will deliver better results with a better ROI.”

With Special Finance Group’s Complete Special Finance Solution, your dealership will get our highly trained call center that will set and track your appointments while instilling a sense of urgency and excitement in the customer. Our call scripts are written by a telemarketing veteran, and every day, we listen to our phone reps and our customers’ feedback to tweak and improve those scripts. Customers will show up to their appointments with all their proper documentation and ready to get a car if they are approved. It streamlines the car buying process, helping your sales team sell more cars.

Want to learn more about the Complete Special Finance Solution? Go to http://www.specialfinancegroup.com, and get the latest news from Special Finance Group by liking us on Facebook, following us on Twitter, and connecting with us on LinkedIn.

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3 Big Steps to a Fully Compliant Dealership

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Is your dealership following strict compliance? Many dealerships might think they have nothing to worry about complying with federal and state consumer protection laws, but with the new Consumer Financial Protection Bureau, full compliance is more important than ever.

There are three steps that you can take to review your dealership and catch any potential problems or missteps before they become a bigger problem. First, review your employee training procedures. If this information is not written down and streamlined, take the time to do so now. It will make training easier and clearer in the future, and you will also ensure that nothing important gets missed.

Second, go through your dealership’s written policies and procedures with a fine tooth comb, and ask a compliance lawyer to also take a look over it. Also, be sure to have a copy of the most recent relevant consumer laws on hand. You can find the most recent regulations enforced by the Consumer Financial Protection Bureau here. If there is anything that could be potentially problematic in any way with your current policies or procedures, make the change now in writing, and keep a new copy of your policies and procedures on file.

Third, review your new policies and procedures with all employees, especially anyone who thinks they already know what they are doing. Ignorance can keep a dealership non-compliant, but complacency is far worse for a dealership.

At Special Finance Group, we are constantly working to maintain full compliance with consumer financial regulations. We see compliance as a job that is never done in every part of our business from our first contact with a customer to handing over the keys to a new or used vehicle. Our hard work has led to hundreds of happy customers who have had a positive experience and driven off with a car.

Special Finance Group’s Complete Special Finance Solution can help your dealership too! Click here to learn more, and connect with Special Finance Group on Facebook, Twitter, and LinkedIn!

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Inventory Made Simple

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Working in special finance, one of the biggest factors to success (perhaps the biggest factor to success) is a good inventory. It can be a tough balance to find cars that will turn a profit, will appeal to buyers, and that will work with the finance companies. There are some great resources for special finance departments to find inventory like Auto Auction Insider and Bidzpin, but you don’t really need a lot of bells and whistles to get the right vehicles.

What is the ideal vehicle for special finance? We suggest using this checklist when deciding to buy.

  1. Does the car have less than 75,000 miles on it?
  2. Is the car model less than 7 years old?
  3. Is the cost less than $19,000 and greater than $7,000?
  4. Is the car $500 or more below average trade value of NADA, KBB, or Black Book?

If the vehicle fits all 4 qualifications, then it is an ideal candidate. Now, it isn’t possible to get all 4 of these qualifiers all of the time, but you should try to get all 4 as often as possible. To quote Greg Goebel of Auto Dealer Monthly, “You likely will have to look at eight to 10 vehicles in order to buy one.” It isn’t easy, but the reward for your special finance department will be worth the work in the long run.

Getting the right inventory won’t mean much, though, if the right customers aren’t walking in the door. This is where Special Finance Group comes in. As part of our Complete Special Finance Solution, our call center qualifies leads for your department, finds customers that are ready to buy, and sets appointments for them to stop by the dealership. It compliments and enhances your special finance department. Your reps will have more time to do what they do best, and the department will see higher sales and more satisfied customers.

Learn more about Special Finance Group’s Complete Special Finance Solution here, and connect with Special Finance Group on Facebook, Twitter, and LinkedIn.

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