Special Finance Group » economy

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.

Image courtesy of ddpavumba / FreeDigitalPhotos.net

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.

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 moggara12 / FreeDigitalPhotos.net

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.

Image courtesy of digitalart / FreeDigitalPhotos.net

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

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.

Image courtesy of imagerymajestic / FreeDigitalPhotos.net

New York Tops Big Cities for Used Car Sales

sfgadmin — Wed, 29 May 2013 20:17:25 +0000

There was good news for New York City’s used car dealerships this week as the city topped nearly every used car sales category in units sold last year.

According to CNW Research, New York City’s independent dealerships sold 1,251,894 units in 2012, beating out Los Angeles and San Francisco, and also beat out all other cities for private party sales and total used car sales overall. New York was beaten out by Los Angeles for used car sales by franchised dealerships, but in that category, they still sold an impressive 744,795 units.

The top 5 cities in each category are listed below.

Units Sold by Independent Dealerships

1. New York – 1,251,894 units

2. Los Angeles – 848,787 units

3. San Francisco-Oakland-San Jose, Calif. – 479,666 units

4. Chicago – 434,225 units

5. Philadelphia – 391,653 units

Units Sold by Franchised Dealerships

1. Los Angeles – 1,025,646 units

2. New York – 744,795 units

3. San Francisco-Oakland-San Jose, Calif. – 614,377 units

4. Chicago – 540,306 units

5. Philadelphia – 480,341 units

Units Sold by Private Party

1. New York – 609,736 units

2. Los Angeles – 567,596 units

3. Chicago – 489,556 units

4. Seattle-Tacoma, Wash. – 359,677 units

5. Dallas-Fort Worth, Texas – 355,116 units

Total Used Sales by City

1. New York – 2,606,426 units

2. Los Angeles – 2,442,030 units

3. Chicago – 1,464,088 units

4. San Francisco-Oakland-San Jose, Calif. – 1,437,173 units

5. Dallas-Fort Worth, Texas – 1,074,076 units

Image courtesy of Bill Longshaw / FreeDigitalPhotos.net

Auto Sales: April’s Big Winners

sfgadmin — Tue, 07 May 2013 14:45:26 +0000

Now that April is done and the sales numbers are finalized, the auto industry is seeing that April might not have been as strong as March, but some automakers finished up April feeling very happy indeed.

Among the best performers in April were Nissan with 80,003 units, Ram with 32,124 units, and Ford with 204,969 units sold. Compared to 2012, they had volume increases of 24.62 percent, 49.38 percent, and 17.77 percent respectively.

Nissan NA was the highest performing automaker overall, however, with a 23.16 percent increase over April 2012. They also saw an 18.23 percent daily sales rate increase. Chrysler Group had Ram’s strong sales in their favor, but it was brought down by Chrysler’s disappointing numbers, only bringing in 27,836 compared to 31,879 in April 2012.

Going into May, dealerships will be enjoying some of the best weather they will have all year. Americans will be thinking about getting out of town, going to the beach, or hitting the road for summer vacation, and if they don’t have a road-ready car, they will need to get one soon. Plus, consumers are still figuring out how to spend their tax refund. With the right marketing push, dealerships could make a lot of money in May.

Image courtesy of arztsamui / FreeDigitalPhotos.net

Automakers Break Records with March 2013 Sales

sfgadmin — Sun, 07 Apr 2013 19:15:19 +0000

After 2012′s record-breaking sales, it seemed like the auto industry would eventually hit its peak and plateau. Now that March is over, though, it hasn’t happened yet. For nearly every automaker, March 2013 sales were significantly higher than one year ago.

Cadillac saw the highest increase in volume of sales with a 49 percent increase compared to March 2012, but Ram and Dodge also did extremely well with 24 percent and 15 percent increases respectively. Ford was the top seller overall with 229,335 units, though it was on the lower end of sales increases with a 6.86 percent increase.

Going into April, dealerships across the country need to dive in and realize that they could see some of their best numbers in years this spring. Now that auto loans are more accessible than ever, even to consumers with poor credit, dealerships simply need to focus on getting car shoppers in the door. Americans are ready to buy, and with the right promotion and customer outreach, they are almost guaranteed to do well.

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 digitalart / FreeDigitalPhotos.net

2013: Reviewing Your Dealership’s Resolutions for the New Year

sfgadmin — Tue, 08 Jan 2013 18:57:46 +0000

2012 was an outstanding year for the auto industry with strong sales numbers despite setbacks like Hurricane Sandy. Every dealership across America had the potential for their best year since the start of the recession. The question is, though, how did your dealership perform?

Looking back at the goals your dealership set for 2012, how close did you come to meeting those goals? More importantly, did you do everything you could in order to meet those goals? Many dealerships aren’t taking advantage of the opportunities right in front of them such as an efficient special finance department. A well-run special finance department alone can bring in additional business. Not only will the dealership sell more cars, they will also bring in more business for the normal sales and service/parts department.

What about dealerships that already have a special finance department? Well, if a special finance department isn’t running properly, there is almost no point in having one. Look at your dealership’s special finance department if you have one, and ask yourself if there is room for improvement. Is there a steady stream of customers coming in the door, or are you slogging through sub-par leads hoping to find some real customers?

Fortunately, Special Finance Group has Complete Special Finance Solutions suited for dealerships that currently have a special finance department and those who do not have a special finance department. With Special Finance Group, partner dealerships get a fully-staffed business development center which tracks all leads and advertising, sets appointments for potential customers, and manage general customer service. Additionally, partner dealerships will have two special finance experts at their location to manage all in-house operations, and Special Finance Group hosts monthly meetings to review dealership performance and educate reps about the latest consumer laws to maintain compliance.

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

Image courtesy of Stuart Miles / FreeDigitalPhotos.net