Tag Archives: economy

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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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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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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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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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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1 in 4 Auto Loans in 2012 Were Subprime

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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.

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

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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.

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2012: Year of the Subprime Auto Loan

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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.

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Credit, Auto Sales Top Last Year’s Customer Complaints

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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.

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

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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.

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