Special Finance Group » credit report

The Key to Special Finance – Take the Time and Do It Right

sfgadmin — Mon, 21 Apr 2014 04:49:25 +0000

In the world of special finance, everyone claims to have the secret or trick to creating a successful special finance department. Their trick is something no one has heard of, and even if their special finance department has other problems, all that a dealership has to do is follow this rule.

Actually, there is a rule that every special finance department should be following if they want to earn long-term success, but while it is simple to understand, it is more difficult to follow. The rule is to take your time and do each deal right. No excuses and no cutting corners. Everything good in life takes work, including business, and unhappy customers don’t give referrals.

If you are not sure what it takes to get it right, here are a few guidelines. First, customers need to feel that you are on their side. From the minute they walk in the door, they should be treated with respect, and when they start the process of getting approved, explain the entire process to them and make sure they understand. Do not condescend to them or treat them with disrespect. As the saying goes, it doesn’t cost anything to be nice.

Second, follow up with past customers. Even if they aren’t looking to trade in or buy a new car for themselves, maybe they are looking for a used car for their teenager, or they have a friend or relative looking for a car. If you treated them with respect and fully explained the terms of their auto loan, they will remember, especially if you follow up with them.

Finally, set the proper expectations for the customer with respect and kindness. It might not be feasible for them to get the car of their dreams if they have low credit or no credit, but they might be open to a good used car if they have been treated with respect and if they fully understand their credit situation.

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!

Image courtesy of stockimages / FreeDigitalPhotos.net

More Than 1 In 4 Car Loan Applicants Have Something In Common

sfgadmin — Tue, 11 Feb 2014 19:32:19 +0000

If over 1 in 4 new auto loan applicants had a common shared trait, car dealerships across the country would be clamoring to know what that trait might be. The truth is that there was a common trait shared by 27 percent of of loans for new cars in the first half of 2013. What was the common trait, and how can car dealerships use it to bring in more business? Read on to find out more.

According to Experian Automotive, 27 percent of new auto loans in the first half of 2013 were subprime auto loans, or loans granted to consumers with poor credit or no credit. These customers have gone through credit problems like loan delinquencies, job loss, and bankruptcy, or they never had the opportunity to establish credit history in the first place. Many consumers with low credit or no credit are in dire need of a reliable vehicle so they can get to work, pick up their kids from school, and keep up with their other responsibilities.

This is a demographic of people who are eager to buy, and yet many of them are not being sufficiently served by their local dealerships. They are viewed as high-risk buyers because of their credit histories, and sales teams at dealerships are not always trained with the knowledge they need to work with these customers. Special Finance Group has been helping dealerships cater to these customers for years using their proven Complete Special Finance Solution. Their services include an in-house marketing team, a dedicated call center that follows customer leads from first phone contact to scheduled car loan appointments, and special finance experts who handle day-to-day operations at dealerships.

If you are looking to move more inventory and boost foot traffic in your dealership, Special Finance Group is ready to assist you with their Complete Special Finance Solution. To learn more about what Special Finance Group can do for you, go to http://www.specialfinancegroup.com, and connect with Special Finance Group on Facebook, Twitter, and LinkedIn.

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Fake Paystubs: A Costly Scam

sfgadmin — Thu, 24 Oct 2013 19:27:56 +0000

In the past year, special finance departments across the country have been faced with a new problem, a problem that can destroy relationships with banks and lenders and lead to millions of dollars in fines and prison time.

One of the most important documents needed when applying for a subprime auto loan is a paystub. A paystub proves that the applicant is employed and making a certain income. Unfortunately, some desperate people who haven’t been able to obtain financing are producing fake paystubs in hopes of getting approved for a car loan. This story was first reported by Greg Goebel over on F&I and Showroom, and sadly, this is not an isolated incident. There are websites that allow users to print fake paystubs and YouTube videos that show how to produce fake paystubs.

To be absolutely clear, creating fake paystubs is illegal, and it is a costly crime. Offenders can face up to 30 years in prison plus fines up to $1 million. It is illegal to produce them for customers who are paid under the table. There is no circumstance under which you or your dealership should assist a customer in producing fake paystubs, and as much as possible, you should verify the paystubs are authentic.

Even if your dealership is fooled by fake paystubs and completely blameless legally, these incidents can still damage your dealership’s relationship with banks and lenders. Those relationships are vitally important to a successful special finance department, so be aware and know what to look for in spotting fake paystubs.

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Changes Over at Hyundai and What Dealerships Can Learn From It

sfgadmin — Thu, 17 Oct 2013 19:52:29 +0000

It might seem like common sense, but the auto industry is realizing that not every customer that walks into a dealership is a prime credit customer or a repo waiting to happen. Sometimes, customers fall in the middle, and the industry can do more to help customers struggling to make their payments on time.

In a recent profile with Wards Auto, Hyundai Capital America walked through the steps they have taken to better serve their subprime customers who might be struggling with their payments. First, they needed to look at the people calling into their customer service center, their most common issues, and how customer service people were currently addressing these issues. They realized very quickly that their systems were inadequate for addressing customer concerns. Customers that could have received a loan extension might have missed out on the opportunity because service representatives had to get approval from their managers on every case. They would need to make some major changes if they expected to improve the customer experience and avoid potential delinquencies and repossessions.

Fortunately, Hyundai added a new software system to their rep’s computers. The rep could check if the customer’s payment history and whether they had received an extension before. While these reps still didn’t have the final say on granting extensions, the system walked the rep through the process and provided considerably more information on the customer than before.

When dealing with sub-prime credit car buyers, there are many little details that dealerships have to keep in mind when working and closing a deal, and dealerships that are new to special finance can miss these details easily. Fortunately, Special Finance Group is ready to help with the Complete Special Finance Solution. Lead tracking, a fully-staffed business development center, an in-house marketing team, and more, Special Finance Group has everything a dealership needs to create a profitable special finance department. To learn more about the Complete Special Finance Solution, click here.

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September Sales: Don’t Let the Numbers Fool You

sfgadmin — Thu, 03 Oct 2013 20:00:01 +0000

Overall sales numbers were down for the month of September, but Autoblog’s By the Numbers claims that might not be a bad thing.

In September 2013, total sales were up for BMW Group, Ford Motor Company, and Chrysler Group while Toyota, Nissan, and American Honda all saw a drop in total sales when compared to September 2012. As By the Numbers explains, however, the important numbers are not the total sales but rather the daily average sales rate. September 2012 had two more business days than September 2013, so the dealerships would have had to perform much better on their daily sales rate to top September 2012.

Out of the four automakers that had a drop in total sales, only two of those automakers had a drop in their daily average sales rate. Toyota Motor Company and Nissan actually had a small increase in their daily average sales rate in September 2013 compared to September 2012. American Honda and General Motors were the only companies that had a drop in daily average sales rates.

Going into the fall, it is going to be tougher to tap into the out-on-the-road excitement that car buyers have during the summertime. Kids are back to school, and people are settling into a daily routine and not immediately thinking of buying a new car. For dealerships that have a thriving special finance department, however, this is less of a concern. Customers with subprime credit are getting denied at dealerships every day, and many of them need a car for work or for their families. Dealerships with Special Finance Group’s Complete Special Finance Solution are prepared to work with these customers and help them get into a new or used car, and even in slower times of the year, these dealerships can bring in higher sales.

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2013: Subprime Auto Loan Originations Up, LTV Close to Record Levels

sfgadmin — Thu, 26 Sep 2013 17:48:47 +0000

For car buyers with subprime credit, there has never been a better time to buy. With loosening credit standards on auto loans, dealerships are actually competing for their business and doubling the number of subprime auto loans.

According to Automotive News, the average loan-to-value ratio (LTV) for auto sales to subprime credit customers has gone up 114.5 percent, getting very close to the current record of 121 percent in 2008. During the fourth quarter of 2012, subprime auto loans originations hit $18.4 billion, and dealerships across the country that were not marketing towards subprime credit consumers started to notice they were missing out on a piece of the pie.

For those dealerships wanting to get their piece of the pie, there is Special Finance Group ready to help with the Complete Special Finance Solution. Lead tracking, a fully-staffed business development center, an in-house marketing team, and more, Special Finance Group has everything a dealership needs to create a profitable special finance department. To learn more about the Complete Special Finance Solution, click here.

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

2013: Auto Sales January to June Top 7.8 Million

sfgadmin — Tue, 16 Jul 2013 20:44:47 +0000

Sales numbers are in for the first half of 2013, and car dealerships are ready to celebrate.

From January through June 2013, auto sales were at pre-recession levels with over 7.8 million sold in the United States, and industry insiders are predicting that the last half of 2013 will only get better. According to the Poughkeepsie Journal, loosening credit restrictions and lower interest rates will likely boost sales numbers even higher as the year goes on.

What are all these car shoppers buying? Well, the answer isn’t simple. Truck sales have skyrocketed this year, but subcompacts have done very well amongst the younger crowd. Certain minivans and family-style SUVs like the Honda Odyssey and Toyota RAV4 also sold well with 26 percent and 36 percent sales jumps respectively. Dealerships will need to maintain a varied inventory, and if they are targeting subprime credit clientele, they will need to give special attention to their used inventory.

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!

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Subprime Lending: Don’t Call It a Comeback

sfgadmin — Thu, 27 Jun 2013 21:36:04 +0000

Yesterday, Automotive News published one of the most obvious statements I have seen in quite some time. “Deep subprime lending is finally in recovery mode.”

With all due respect, has Automotive News been living under a rock?

As special finance departments across the country can see first-hand, subprime auto lending has been back for a long time. Way back in March, TransUnion and Experian reported that one in three auto loans were for consumers with subprime credit, and even with all these subprime auto loans, delinquencies 60 days or more had gone down. The industry dipped its toe in subprime credit last year. The “recovery mode” is long gone, and subprime lending is back.

As subprime lending conditions have improved, though, some dealerships haven’t had the proper tools or training to fully take advantage of this opportunity. This is the perfect time to bring in new customers who otherwise might not have walked through the door and also move inventory, particularly used inventory. There are common problems such as ineffective sales tactics and lack of knowledge regarding consumer protection laws.

This is where Special Finance Group comes in. We provide a Complete Special Finance Solution that will give your dealership exactly what it needs to be successful, from a fully-staffed business development center to lead tracking and an in-house marketing team. To learn more about the Complete Special Finance Solution, click here.

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

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May Auto Sales Make Up for April Slump

sfgadmin — Mon, 03 Jun 2013 19:57:08 +0000

In retrospect, April was a bit of a disappointing month overall for auto sales, especially compared to the rest of 2013 and late 2012. As the numbers come in from May, however, it is clear that this is going to mark a strong start to the summer.

Among the month’s winners were General Motors, who reported the best monthly sales since September 2008, as well as Nissan with its best May sales ever. According to early reports, Chrysler, Ford, and Toyota also had increased sales in May, but as of publication, those numbers are not finalized yet.

Going into the summer months, pickup sales are expected to continue rising. People are buying them for both business and pleasure, from home construction to camping and off-road recreation. The F-Series, Ram, and Chevy Silverado have all sold very well so far and are expected to see a healthy spike when May’s sales numbers are finalized.

With May over, summer is officially here. Are you ready to move more inventory and boost foot traffic in your dealership? Special Finance Group is ready to assist you with their Complete Special Finance Solution. To learn more about what Special Finance Group can do for you, go to http://www.specialfinancegroup.com, and connect with Special Finance Group on Facebook, Twitter, and LinkedIn.

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Privacy Policy and Consumer Laws: Is Your Dealership At Risk?

sfgadmin — Wed, 15 May 2013 18:11:29 +0000

The privacy of personal information is a great concern for American consumers in today’s computer age. In a rush to seem up to date on the latest technological safeguards, however, many car dealerships are making false promises and violating consumer laws.

Nearly every car dealership’s privacy policy agreement includes a line about “physical and electronic safeguards” put in place to protect customer information. These privacy policies might look good and put a customer’s mind at ease, but most of these dealerships have no idea what they have in place to safeguard customer information, if they even put anything in place at all.

Consumer protection groups and government organizations are starting to crack down on dealership privacy policies. If dealerships claim that they have safeguards but don’t actually have a system in place, they can be charged for deceptive trade practices and forced to pay settlements. Besides the cost of the settlements, dealerships will also lose business. Car shoppers will be less trusting, especially when it comes to sharing their personal information.

What can your dealership do to avoid these problems? We recommend sitting down and reviewing your dealership’s privacy policy. Is it an accurate reflection of what is currently in place? If someone asked you to specifically outline your system’s safeguards, could you and your staff answer the question? If the answer is no, then the first priority is deciding on reasonable safeguards and implementing them as well as updating the privacy policy if necessary.

Special Finance Group wants to give your dealership’s special finance department the tools it needs to succeed and exceed your expectations. To learn more about Special Finance Group’s Complete Special Finance Solution, go to http://www.specialfinancegroup.com, and connect with Special Finance Group on Facebook, Twitter, and LinkedIn!

Image courtesy of Stuart Miles / FreeDigitalPhotos.net