Tag Archives: car dealership

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.

Image: Stuart Miles / FreeDigitalPhotos.net

Lack of Used Cars Drives New Cars Sales

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CNBC has put out an analysis of the used car market. It’s findings did not bode well as the used market was hit hard by the collapse of 2008. Due to the economic downturn, many vehicle manufacturers cut their production on a large variety of makes and models to keep their doors open. While the economy is starting to come back to better times, car owners that have seen harder times due to the recession have been deciding to keep their cars rather than trading in for a new ridge.

How much exactly? Well, the amount of three and four year old cars for sale on the market is down by about 19 percent. That comes out to a total of around 5.7 million used cars that would’ve been on sale or available. Since this supply has taken such a hit, it’s no surprise to see that used car buyers are now looking to the new car market instead. Thankfully, it was a good winter for the auto companies. Even January sales showed a vast improvement over the previous year with about 13.5 million. Ford and Chrysler have already been putting out some good numbers for the month as well.

There’s definitely a high demand out there for vehicles and for the buyers with challenged credit. There is no better time to sign up for Special Finance Group’s Complete Finance Solution than right now. You can view the program here and go to the main website to see just what SFG can do for you and your dealership. Don’t forget to also follow them on Facebook.

Image: Stuart Miles / FreeDigitalPhotos.net

Interest Rates Low Into the New Year

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Talk of the economy of almost completely inescapable these days.  Things seem to be taking a turn for the better however, with the auto industry having very positive news about their sales upswing in 2011.  Unemployment numbers just came out the other day, showing at 8.3%, the lowest in three years. Money is starting to get back in people’s pockets and for the person looking to purchase a vehicle the lenders are expected to give some great rates in 2012.

Interest rates have seen a steep drop of late.  For example, a 60 month- loan given in November of 2008 to someone with excellent credit would be looking at paying an annual percentage rate of 6.54 percent.  That same loan being made today would be at 3.73 percent.

Melinda Zabritski, the director of automotive credit for Experian, has an explanation.  She believes that consumers are no longer making impulse buys but are rather being more cautious with their money and planning out a car purchase in advance.
That’s not to say that just because you have bad credit means that you’ll get guaranteed an excellent rate.  For subprime borrowers (people with credit scores of 619 and below) they can expect to have to provide a 20 percent down payment.  Due to this, Experian’s Zabritski explains that these customers should be looking more at used cars where there are better loan opportunities.  According to Experian’s data, the used car may have a higher interest rate but this is offset by the lower cost of the vehicle along with a better chance of being approved.

There are some basics people need to know before purchasing a car.  These range from setting up a budget, knowing your credit score by doing a credit check, and being prepared to make a larger down payment.  The signs are there with the economy with the recent turn for the better.  People with low credit are still having a tough time with auto loans, but it’s starting to look more optimistic.

2012 is going to be the year to get people into the car they want.  This high demand from consumers with challenged credit means that there is no better time to sign up with Special Finance Group’s Complete Special Finance Solution.  You can learn more about the program here and go to http://www.specialfinancegroup.com to get more information.  Don’t forget to like them on Facebook to stay up to date on all the latest news in the industry.

American Auto Makers See Year-End Boost

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As 2011 closed out and 2012 began, it was clear that the end is not near for Detroit automakers.

In 2011, sales for new cars, trucks, and crossovers jumped 10.2 percent, and Chrysler Group alone had 37 percent sales increase compared to December 2010. Chrysler wasn’t the only domestic auto company to see big sales, though. Ford and GM also posted high sales numbers for 2011 with a sales increase of 17 percent and 14 percent respectively.

The jump in sales can be attributed to two main factors. First, domestic auto makers have been stepping up their game and making their newer models even better. Chrysler Group and their Chrysler, Jeep, Dodge, and Ram brands are great examples. Second, banks are becoming far more aggressive with their special finance programs. They want to help the millions of Americans who have challenged credit to get into a car. The trouble is that if someone has damaged credit, there is no way to rebuild it unless someone gives them the chance. Unless they have a credit card to make payments on or a car to pay off, there is no way to build up a positive payment history.

With the high demand for vehicles and millions of consumers with challenged credit, there is no better time to sign up with Special Finance Group’s Complete Special Finance Solution. Learn more about the program here and go to http://www.specialfinancegroup.com to find out what Special Finance Group could do for your auto dealership. You can also follow us on Facebook here.

Image: Ambro / FreeDigitalPhotos.net

Special Finance Group: Improving Leads Through New Media Tools

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Marketing and advertising in the past few years has changed drastically, and knowing how to optimize one’s online presence is more imperative than ever, particularly in lead generation.

While many companies are still adjusting to this new world of lead generation, Special Finance Group is already using these tools and programs to collect more effective leads and utilizing online social networking websites like Facebook to further engage potential customers. All of these features are included for any auto dealership partnered with Special Finance Group, helping Special Finance Group maintain their company guarantee. As it states in their agreement, “We guarantee the integrity of each and every deal we assemble. If any lender will not fund a contract on a vehicle we delivered to a customer, Special Finance Group will buy the contract or write a check for any loss associated with the recession concerning the specific deal.”

Enhanced lead generation is one of the many great services offered by Special Finance Group including an additional 200 to 300 clients every month and the expertise of special finance experts with years of experience working in the industry. To learn how your special finance department could benefit from Special Finance Group, call today at 212-239-7270, e-mail at info@specialfinancegroup.com or stop by their Manhattan location at 16 W 36th Street. You can also read more about the Special Finance Group advantage here.

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Credit-Challenged Consumers Getting Cars Through Special Finance Programs

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FOR IMMEDIATE RELEASE

New York, NY – November 21, 2011 – With today’s troubled economy, consumers with poor credit are a mostly untapped group of potential customers in the car industry. They get frustrated going from car dealership to car dealership putting more hard inquiries on their credit reports and not getting any closer to purchasing a car. Some dealerships, however, are opening their own special finance departments to get sub-prime clients into a car while still making a profit at the same time.

After opening a special finance department, many dealerships have seen a huge return on investment (ROI). Special finance departments alone often bring in hundreds of thousands of dollars gross profit monthly, usually with a 50 percent net profit on the monthly gross.

Additionally, these new customers will need to maintain their newly purchased cars. It is likely that they will stop by the dealership’s service and parts center, once again getting more return on their investment.

Dealerships are looking to special finance companies like Special Finance Group to start or supplement their special finance department and bring in more clients. While each of these companies works differently, Special Finance Group works within the dealership, and their special finance experts manage the department and bring in an additional 200 to 300 clients every month.

The two biggest advantages that Special Finance Group has over other third-party special finance companies is their company guarantee and founder Todd Campanella’s years of experience in special finance. The company guarantee listed on the website states, “We guarantee the integrity of each and every deal we assemble. If any lender will not fund a contract on a vehicle we delivered to a customer, SFG will buy the contract or write a check for any loss associated with the recession concerning the specific deal.”

Founder Todd Campanella also personally stands behind that guarantee in his letter which is also available on the website. He cites his 14 years working in special finance and his “dedication to compliance, ethical business practices and…keeping the dealership’s best interests in mind.”

Companies like Special Finance Group are a win-win for consumers and dealerships alike. Consumers with challenged credit can have a better chance of a dealership working with them, and dealerships get more potential customers which cannot be understated in today’s economy with people hesitant to commit to large purchases.

 

Contact:
Rachel Godfrey
info@specialfinancegroup.com
Phone: 212-239-7270

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