Tag Archives: credit report

1 in 4 Auto Loans in 2012 Were Subprime

Posted on by

A new study released earlier this month showed that 1 in 4 new auto loans in 2012 were obtained by consumers with subprime credit.

The findings, which were released by Experian Automotive, showed that 25.41 percent of consumers who got auto loans in 2012 had challenged credit. Meanwhile, consumers applying for auto loans for a new car on average were approved for $474 more than in 2011, and consumers applying for auto loans for a used car on average were approved for $370 more. Surprisingly, monthly payments stayed about the same for both new and used car loans.

Dealerships that are not promoting a special finance department are missing out on a huge segment of potential customers. Over a quarter of approved auto loans went to subprime credit consumers, and probably more loans could have been approved if dealerships were bringing in more subprime credit clientele. This is why Special Finance Group’s Complete Special Finance Solution is so important. We have years of experience working with dealerships, and we’ve seen our dealerships bring in hundreds of thousands of dollars in additional revenue every month and additionally strengthen their parts and service departments.

We like to use the analogy of a pie. One piece is the sales, one piece is service, one piece is parts, and one piece is special finance. In our mind, special finance is not an afterthought for a successful dealership. Without a strong special finance department, a giant piece of the pie is missing, and that dealership will never realize its full potential.

You can learn more about the Complete Special Finance Solution by going to http://www.specialfinancegroup.com. Also, be sure to connect with us by liking Special Finance Group on Facebook, following Special Finance Group on Twitter, and connecting to Special Finance Group on LinkedIn.

Image: FreeDigitalPhotos.net

NBC: Auto Industry Is “Little Engine That Could” In Recovering Economy

Posted on by

Looking at America’s current economic situation, there are many industries that are still struggling for a comeback, but one industry is thriving in 2012 and is literally driving the economy.

2012 has been a good year for the auto industry. Sales are up, delinquencies are down, and auto loans are more accessible than ever. NBC’s Bottom Line praised the auto industry’s success and high sales in the United States despite the challenges facing the industry, and they dubbed the auto industry the “little engine that could” referring to the famous children’s book character. In the book, a long train of cars needs to be pulled over a mountain, and all of the big engines complain and refuse to pull it. When no one steps up, a little engine volunteers for the job, even as everyone around him says he can’t pull the train over the mountain. In the end, he beats the odds, and his mantra “I-think-I-can” turns into “I-thought-I-could.”

While praise is encouraging and can push people to work harder, it is better to be a big dog than an underdog. It is better for people to always expect great things than to be surprised when a dealership posts big profits. Do you want people to look at your dealership and think, I think they can, or do you want them to think, Of course they can? Part of becoming a “big dog” is utilizing a dealership to its fullest potential, and Special Finance Group can help a dealership realize that potential. With the Complete Special Finance Solution, a dealership can move more inventory, serve more customers, and bring in more customers to every other department including parts and service.

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

Image: FreeDigitalPhotos.net

2012: Year of the Subprime Auto Loan

Posted on by

2012 feels like the year of the auto. Much of the news from the auto industry has revolved around sales which have continued to exceed industry expectations. American auto makers couldn’t be happier with factories staying active longer and with high-profile launches like the Dodge Dart making headlines. As the Wall Street Journal reported earlier this week, though, it is also the year of the subprime auto loan.

According to recent statistics, 25.4 percent of new auto loans went to borrowers with credit scores below 680, and 12 percent went to borrowers with scores below 620. Back in 2007, over 12 percent of auto loans were going to borrowers with scores below 620, but in 2008 and 2009, those numbers dropped and bottomed out to fewer than 8 percent of borrowers before steadily growing back to 12 percent in 2012.

This is fantastic news for dealerships that are putting time and resources into their special finance department. Having a 620 credit score or less is no longer disqualifying borrowers from getting an auto loan. Over a quarter of auto loans are going to borrowers with scores under 680, and dealerships that reach out to consumers with subprime credit will find customers that are ready to buy and able to get approved. With Special Finance Group’s Complete Special Finance Solution, dealerships can get more customers in the door and driving away with a car, whether the buyer has good credit or not.

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

Image: FreeDigitalPhotos.net

Credit, Auto Sales Top Last Year’s Customer Complaints

Posted on by

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.

Image: FreeDigitalPhotos.net

Wall Street Journal Calls 2012 “A Green Light for Car Loans”

Posted on by

Last week, one of the nation’s most trusted sources of financial news said that now is the time for car buyers to say yes and get into that new or used car.

The Wall Street Journal’s article “A Green Light for Car Loans” laid out all the reasons why there has never been a better time for consumers to buy and dealers to sell, even if the car buyer has poor credit. Most lenders have changed their auto loan standards to give consumers with poor credit the opportunity to re-establish their credit history and improve their credit score. Car buyers, including sub-prime borrowers, have returned the favor by keeping up with their payments, mainly because car repossession is easier than a home foreclosure or collecting on credit card debts. The U.S. chief executive at Toyota Motor Corp was happy with the trend, stating, “We are seeing more ‘subprime,’ which is good,” and Gary McAlister, general manager at the Fairway Ford Lincoln Subaru dealership in South Carolina, was pleased that “the credit issue has eased up.”

News stories like the Wall Street Journal’s recent piece are giving a push to consumers on the fence about buying a car, and the first place they go to look for a car or a car loan is the internet. Special Finance Group wants to help dealerships make the most of this extraordinary time by working tirelessly to match lenders with car buyers. With the Complete Special Finance Solution, dealerships in the Special Finance Group network get access to Special Finance Group’s online resources, their leads generated through internet advertising and social media outreach, and a call center full of highly trained customer service representatives whose sole task is setting up appointments for network dealerships. With Special Finance Group, dealerships can get more customers in the door and sell more cars without taking time away from the dealership or distracting the sales team from what they do best, which is selling cars.

You can learn more about the Complete Special Finance Solution here, and get the latest news and updates from Special Finance Group by liking Special Finance Group on Facebook, following Special Finance Group on Twitter, and connecting with Special Finance Group on LinkedIn.

Image: FreeDigitalPhotos.net

Subprime Loans Bring In High Profits for Car Dealerships, Low Delinquencies for Consumers

Posted on by

Lenders might have shied away from customers with poor credit in recent years, but sub-prime auto loans are proving to be a great idea for American car buyers and dealerships alike.

According to Fitch Ratings, the U.S. auto loan market is continuing to thrive and improve, even as lenders are approving sub-prime credit clientele. There were less charge-offs and 30-day delinquencies in the second quarter, and overall, lenders had extremely low credit losses. Besides that, car sales have kept going up through the summer and are expected to hit their height of the year in August before plateauing in autumn. Now more than ever, dealerships can get more car buyers approved and move more of their inventory out the door, raking in massive profits.

Dealerships across the country are putting more time and money into their special finance department, but there is a downside to all of it. Unfortunately, many salespeople are spending their time calling auto loan leads and trying to get people in the door than they are actually selling cars. This is where Special Finance Group comes in. Special Finance Group supplements a dealership’s special finance department and gives the dealership more time to sell and less hassle getting people in the door. Dealerships in the Special Finance Group network have access to a call center that turns leads into car loan appointments as well as their own auto loan leads and targeted online advertising.

To learn more about Special Finance Group’s Complete Special Finance Solution, go to http://www.specialfinancegroup.com, and keep up with the latest from Special Finance Group on Facebook, Twitter, and LinkedIn.

Image: FreeDigitalPhotos.net

ABC News: Shop Loan First, Car Second

Posted on by

Car shoppers looking for the best deal are getting some interesting advice from ABC News: Worry about your financing before picking out the car.

According to a recent article from ABC News, consumers with an average or less-than-average credit score will benefit from searching for an auto loan first and keeping their options open on the vehicle. Edmunds.com features editor and consumer advice expert Caroll Lachnit lent her advice to the piece and encouraged even people who had been turned down in the past to try again to get a car loan. Lachnit told ABC News, “(Even) consumers with poor credit are able to get back in the market.”

How does this news affect Special Finance Group and its network dealerships? Well, more consumers shopping for a new or used car will be looking for a dealership and lenders willing to work with them first and then thinking of the car second. Special Finance Group’s lead generator taps into these consumers, and from there, Special Finance Group’s highly-trained call center sets appointments for these customers at a network dealership. The result is that dealerships in the Special Finance Group network will all get more potential customers, bringing in thousands in additional revenue every month.

Does your dealership have the Complete Special Finance Solution yet? Learn more about it by going to http://www.specialfinancegroup.com, and get connected with Special Finance Group on Facebook, Twitter, and Linked In.

Image: FreeDigitalPhotos.net

Subprime Auto Loans: Low Risk, High Reward

Posted on by

Subprime lending, two words that have gotten a bad reputation in the past few years. This can be frustrating for car dealerships looking to expand their subprime auto loan offerings, but according to a new article by Business Insider, American car buyers and lenders alike have no need to fear subprime auto loans.

A survey conducted by FICO shows that lenders will be approving auto loans for credit-challenged consumers in the coming year, a trend that is likely to continue. Why are these consumers getting approved for auto loans and yet are getting turned down for credit cards, mortgages, or personal loans? The answer is simple: less risk.

Consumers are more likely to make their car payments than other installment payments like mortgages. Cars are so closely linked to a person’s ability to work and earn a living that people feel more compelled to make their payments. Besides that, foreclosures take much more time to process than a car repossession which makes consumers more likely to pay and lenders more likely to approve the loan. If the consumer doesn’t make their payments, the car can be quickly and easily repossessed.

For car dealerships looking to bring in more business, including more subprime credit customers, Special Finance Group’s Complete Special Finance Solution is the perfect complimentary service to any special finance department. They provide lead generation services as well as a call center with highly trained customer service reps, ready to set up appointments for their partner dealerships. Special Finance Group’s partner dealerships bring in hundreds of thousands of dollars in additional revenue, and dealerships spend less time trying to get customers in the door and more time doing what they do best: selling cars.

To learn more about the Complete Special Finance Solution, go to http://www.specialfinancegroup.com or call 212-239-7270 for more information. You can also connect with Special Finance Group on Facebook, Twitter, and Linked In.

Image: FreeDigitalPhotos.net

Americans Think They Are on Facebook Less, Actually on Facebook More

Posted on by

Last month, a survey was making the rounds claiming that Facebook users were logging into Facebook much less and weren’t staying on the site for as long. As it turns out, that survey might have been completely wrong.

Reuters, who conducted the initial survey, asked 1,032 Americans how often they used Facebook and how long they spent on the site. Over a third of American Facebook users responded that they were using the site less, and only a fifth of respondents said they were spending more time on the site recently.

As it turns out, though, their perceptions of how much time they spend on the site and the time they actually spend on the site do not match up. According to Nielsen data, people spent an average of 7 hours 9 minutes on Facebook during the month of April, more than Google and YouTube combined. It is a marketer’s dream come true. Users think they are spending less time on Facebook, but in reality, they are spending more time on Facebook.

At Special Finance Group, we are constantly keeping an eye on how Facebook, Twitter, and other popular social media sites are being used and finding new ways to bring in potential car buyers. As part of the Special Finance Group network, a dealership will get to reap the benefits and will get new customers walking through their door every month thanks to the work done by Special Finance Group’s SEO/ORM team.

To learn more about Special Finance Group’s Complete Special Finance Solution, click here or go to http://www.specialfinancegroup.com. Also, keep up with the latest from Special Finance Group by liking Special Finance Group on Facebook and following Special Finance Group on Twitter.

Car Shopping for Credit Challenged Consumers Starts Online

Posted on by

When people need answers for anything nowadays, they instantly go to the internet. If you aren’t sure about something, you Google it. If you are picking out a restaurant, you check out reviews on Yelp. It only makes sense that Internet shopping and research has become a large part of the car shopping process even before someone sets foot in a car dealership.

A new study by Redshift Research shows that consumers are even more dependent on the internet during the beginning stages of car shopping than many in the industry believed. Over a third of consumers check out car dealerships’ websites and research car makes and models online, and 18 percent spend time on car manufacturers’ websites. Chris Green of Motoring.co.uk, which sponsored the study, claims that engaging online customers is “the only way to win in this challenging market.”

While the study did not comment on sub-prime credit consumers, this target group is very likely to go to the internet first when looking for an auto loan. They know that they have poor credit, and they know that going to dealership after dealership and getting turned down will only serve to frustrate them and hurt their credit with numerous inquiries. By searching for dealerships willing to work with sub-prime clientele, they can cut down on their time hunting for a car and an auto loan.

The beauty of Special Finance Group is how they connect these online car shoppers with dealerships within their network, particularly customers with poor credit. Special Finance Group has a strong online presence through their website, their Facebook page, and numerous other social networking sites, and dealerships enrolled in Special Finance Group’s Complete Special Finance Solution get connected with car shoppers ready and eager to buy, bringing in hundreds of thousands in additional sales.

You can learn more about Special Finance Group and what the Complete Special Finance Solution can do for you by checking out http://www.specialfinancegroup.com, liking Special Finance Group on Facebook, and following Special Finance Group on Twitter.

Image: FreeDigitalPhotos.net