Tag Archives: Finance

Subprime Auto Loans: Low Risk, High Reward

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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

Car Shopping for Credit Challenged Consumers Starts Online

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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

Climbing the 15 Steps to Sub Prime Success with Special Finance Group

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Yesterday morning, I was drinking my morning cup of coffee and catching up on the car news and blogs from the weekend. As I was perusing the headlines, Rick Wise’s blog “15 Steps to Sub Prime Success” caught my eye. I was curious about how Special Finance Group stacked up when compared to someone else’s standards of sub prime success.

Not surprisingly, Special Finance Group met or exceeded each of the 15 steps which we have listed below.

1. Plan for the sale: Planning for a sale means having the attitude that every contact could potentially become a customer. Special Finance Group employees from the phone representatives to the in-house special finance experts are ready to assist customers every step of the way and answer any questions that might come up.

2. Attract prospects: Special Finance Group utilizes both traditional and non-traditional ways of attracting customers. They generate their own leads through their website and through online social media outlets such as Facebook, Twitter, etc.

3. Master the telephone: Special Finance Group’s highly trained customer service phone representatives make first contact with potential customers. They set up the customer with an appointment to come into the dealership, and they generate excitement for the appointment and the prospect of getting into a vehicle.

4. Set the appointment: Setting an appointment instills a sense of urgency in the customer as well as a sense of importance and ownership. This is their appointment, and the special finance experts will be meeting with them personally. If they do not make it to their appointment, they might not be able to get into a car.

5. Master the meet & greet: From the first contact by phone through the meeting at the dealership, Special Finance Group employees are friendly and helpful. They strive to earn the customer’s trust and treat them with respect.

6. Perform a needs analysis: In the initial phone call, Special Finance Group phone representatives review the customer’s application, verify their income, and inquire if the customer is looking for any specific vehicle. This will give the phone representative an idea of what kind of car the customer is looking for, and the dealership can better meet that customer’s needs.

7. Take the statement: “The statement” means the credit application. From the beginning of the process, Special Finance Group ensures that all information submitted by potential customers is entirely accurate and that the customer brings all documentation verifying that information to their appointment at the dealership.

8. Make a credit decision: Based on the customer’s credit, the in-house special finance experts can quickly match them up with vehicles that meet their needs, fit their budget, and are also a good sale for the dealership.

9. Vehicle selection / reselection: One look at the customer testimonials is proof enough that Special Finance Group representatives do a fantastic job matching customers with dealerships so the dealership gets a sale and the customer gets the car they want.

10. Structure the deal and obtain lender approval: By scheduling customers by appointment only, the dealership is able to plan out the appointment and get the lender approval quickly without wasting the customer’s time.

11. Demonstrate the vehicle: Time and time again, customers compliment how smooth and easy the process is, and a big part of that is letting the customer check out cars while the financing is getting worked out. The customer stays engaged and gets to know the car they are getting.

12. Go over the number: Once the customer has found the car they want, the in-house special finance experts review the customer’s payment options. A customer wants to say yes to a car, not a contract. Once they know the car they are getting, they can get excited about it, and they can… (see #13)

13. Close the deal: Special Finance Group makes sure that steps #1 through 12 are in place so that we close more deals, and more happy customers drive off the lot in a new or used vehicle.

14. Contract and deliver: The in-house special finance reps are meticulous, and they make sure that everything is in place including the proper stips from the customer.

15. Ask for referrals: Our customers send us referrals all the time. We ask, and they are happy to oblige!

From the first contact up through the sale, Special Finance Group’s Complete Special Finance Solution covers all the bases and sets up dealerships for sub prime success! To learn more about the Complete Special Finance Solution, click here. You can also find Special Finance Group on Facebook and follow Special Finance Group on Twitter.

Image(s): FreeDigitalPhotos.net

Defaults Down for Auto Loans, New Yorkers

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In some good news for New York auto dealerships, loan defaults continued to drop in May down to a 1.03% default rate.

Loan defaults overall have dropped almost continuously in the past year, but auto loans in particular have hit record lows. Last month’s 1.03% rate was the lowest rate in 8 years, even as sub-prime loans were made more readily available to American consumers. Interestingly enough, the New York City area has also seen a drop in overall defaults from 1.94% in May 2011 down to 1.61% in May 2012.

These figures are very promising for car dealerships in the New York City area, especially those with a special finance department. Lenders are ready to work with car shoppers who don’t have great credit or even good credit. In return, consumers are repaying those loans and lowering the risk for car dealerships to keep working with consumers with low credit or no credit.

Is your dealership making the most of this perfect car buying climate? Special Finance Group wants to improve and supplement your dealership with our Complete Special Finance Solution which includes two in-house special finance experts, access to our fully-staffed business development center, and much more. To learn more about the Complete Special Finance Solution and what Special Finance Group can do for you, go to http://www.specialfinancegroup.com. Also, you can find the latest news from Special Finance Group online by liking Special Finance Group on Facebook and following Special Finance Group on Twitter.

Image(s): FreeDigitalPhotos.net

What You Need to Know About Pinterest (And How Special Finance Group Can Help!)

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One of the hottest new social media outlets of 2012 is Pinterest. Over 10 million users have signed up with the service and approximately 8 million are active monthly users. Though some would argue that its popularity has already peaked, it is still important to know how to use it as part of an overall social media strategy.

A new study from EyeTrackShop suggests that Pinterest is a unique social media outlet and that campaigns for Facebook, Tumblr, or Twitter will not work the same with Pinterest. This might seem obvious to people involved in social media marketing, but it isn’t so obvious to people unfamiliar with Pinterest (and other social media outlets for that matter).

First off, it doesn’t do much good to put a lot of time into the profile on Pinterest. Users rarely look at each others’ profiles, so it is wasted effort. Second, the layout of your pins is important. Just like a Broadway star, the pin that is front and center will get more attention than the ones along the outside. Thirdly, you want the pins to tie in strongly with the brand. For example, a car dealership will want to highlight a mix of the 2012 vehicle line-up along with old favorites. If the pins only tie in loosely with the brand, users will see the Pinterest account as disingenuous and just trying to drive traffic. Basically, the profile might get more clicks, but those clicks will not translate into brand loyalty and new customers.

The great news about Pinterest is that users who view a company or brand’s Pinterest boards will typically have a more positive view of that company or brand, so it is definitely worth having (and more importantly, maintaining) a Pinterest account. Special Finance Group’s social media team understands Pinterest, Facebook, Twitter, and every other main social media outlet, and they know how to use social media to bring in new customers. The Special Finance Group social media team is part of the Complete Special Finance Solution, and they can handle all of your social media marketing needs.

Click here to learn more about the Complete Special Finance Solution, and keep up with the latest from Special Finance Group by liking Special Finance Group on Facebook and following Special Finance Group on Twitter.

Mashable: When It Comes to Online Marketing, Don’t Do It Yourself

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Special Finance Group has a message for car dealerships looking to gain an online audience. The message can be summed up in 4 simple words: Don’t do it yourself.

A recent article on Mashable, the web’s premiere resource for social media news and technology, had suggestions for companies who are looking into mobile ecommerce. Most of the list pertained to marketing in general like choosing the right platform or simplifying the look, but the last and best suggestion they offered was “Quit Building It Yourself.”

Most business people are overachievers. This isn’t a bad quality, but sometimes they will wrongly believe that they can still manage all of their responsibilities and take on social media and online marketing as well. The problem with this strategy is that the business will focus less time on the actual product and more time learning new technology and online tools. Car dealerships will be spending so much time worrying about their online presence that they will be distracted from providing good customer service to people walking through the door. Dealerships might think they are saving money by doing online marketing themselves, but they are much better off hiring social media and internet marketing specialists like the team at Special Finance Group.

At Special Finance Group, we have you covered in internet marketing, online engagement, and lead generating. Our team is experienced in targeting and bringing in interested car buyers, earning associated dealerships hundreds of thousands of dollars in additional revenue every month. To learn more about what Special Finance Group can do for your dealership, read the Complete Special Finance Solution here. For the latest news from Special Finance Group, like Special Finance Group on Facebook and follow Special Finance Group on Twitter.

Image(s): FreeDigitalPhotos.net

Lenders: Auto Loans More Accessible in 2012

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In 2012, the road to better credit leads right through car dealerships.

According to the Wall Street Journal, the requirements for home and business loans are still strict with most lenders, but lenders are more willing to give auto loans, even for consumers with no credit or challenged credit. They based their analysis on a survey of senior loan officers at American banks as well as foreign banks with U.S. operations.

Studies have shown that car ownership can lead to upward mobility in the workforce and higher pay since car owners are not reliant on public transportation. They won’t be late to work because of a delayed bus or train, and they have more employment options open to them. When a steadier source of income is combined with new available credit, the end result is that the consumer is put in a much stronger financial situation.

Since other forms of credit are not accessible to consumers with a sub-prime credit score, there is a whole market of people looking to re-establish their credit history who will be looking for car loans. Car dealerships that partner with Special Finance Group can tap into this market and have a brand new source of customers. In addition to tradition advertising methods, Special Finance Group has an established online presence and utilizes the latest in online marketing to target the right car shoppers.

To learn more about what Special Finance Group could do for your dealership, read the Complete Special Finance Solution here, and keep up with the latest from Special Finance Group via Facebook and Twitter.

Image: graur razvan ionut / FreeDigitalPhotos.net

April Sales Forecast Great Year for Auto Dealerships

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Hey, Auto Industry! Forget your troubles, come on and get happy!

Not that long ago, there was gloom whenever the auto industry was mentioned in the news. Stagnant sales plagued the industry, and pundits droned on and on about how the bailout failed. The past few months, however, have boosted morale across the auto industry and, pundits are eating their words and changing their tune on the effectiveness of the bailout. So far, the sales in 2012 have been fantastic, and they don’t show any sign of slowing down.

April was full of good news for sales. J.D. Power and Associates published a report showing that the volume of sales are expected to increase by 8 percent. This is great news because April will be the fourth month in a row with a positive upswing in sales for the car industry, and insiders know it is truly extraordinary because of how notorious April is for poor sales. John Humphrey, the senior vice president of global automotive operations at J.D. Power and Associates says, “While April is typically a challenging month to draw comparisons with because the Easter holiday some years falls in April and other years in March, the signs of sustained growth are evident.”

One of the most noted results on the report comes from the luxury vehicle sales. The industry as a whole is up 10.8 percent, but luxury vehicles are down 12.1 percent from the previous year. The speculation being made here is that with gas prices on the rise, the onslaught of powers are looking for sensibly priced vehicles. For example, cars such as the Ford Focus are becoming much more popular.

Sales are continuing to grow, and they show no sign of letting up anytime soon. The auto industry is back with force, and people are flocking to dealerships to get themselves back on the road. That’s why you need Special Finance Group’s help with this new flow of customers. We help those buyers connect with your dealership. Take a look at the Complete Special Finance Solution to see just how we can help you. Like us on Facebook and we’ll keep you in the loop for the latest trends and news in the industry.

Press Release: Special Finance Group Brings On Garden City as New Partner

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Long Island, New York, April 17, 2012 – This week, Special Finance Group announced that it will be partnering with Garden City Jeep Chrysler Dodge Ram to help sub-prime customers in the New York tri-state area, particularly in the Long Island area.

Special Finance Group’s ApprovedLoanStore.com gives consumers with no credit or poor credit another chance at getting a car. People with good credit will also have a wider selection of vehicles and rates available to them. On average, Special Finance Group’s partner dealerships bring in hundreds of thousands of dollars in additional revenue.

Special Finance Group’s Director of Operations Roberto Barca had nothing but praise for Garden City Jeep Chrysler Dodge. “Our customers will love Garden City’s selection and their attention to customer service,” he said regarding the partnership. “We couldn’t be happier to have them part of the Special Finance Group family.”

Garden City Jeep Chrysler Dodge is the premier spot for new and used car shopping in Hempstead, Long Island. Located at 283 N Franklin Street, they have a vast inventory of Jeep, Chrysler, Dodge, and Ram vehicles including favorites like the Grand Cherokee, Town & Country, and Charger. Go to http://www.gardencitycardeals.com or call 877-819-3836 for more information.

Located in Midtown Manhattan, Special Finance Group helps connect qualifying customers with dealerships willing to work with them through their website ApprovedLoanStore.com. ApprovedLoanStore.com also provides financial resources, educational materials, and the latest news from the auto lending industry, helping consumers make better informed financial decisions.

Record-Breaking Months for Special Finance Group

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FOR IMMEDIATE RELEASE

New York, NY – April 13, 2012 – Special Finance Group celebrated record-breaking months in February and March after funding over $1.5 million and $2.2 million in auto loans.

In February, 91 customers were approved for loans through Special Finance Group’s Approved Loan Store program, and in March, 124 customers were approved. These customers had an average income of $27,000 per year and an average FICO score of 545. Despite their clients’ less than ideal financial situations, Approved Loan Store found a way to work with lenders and fund $3,740,978 in auto loans for February and March.

Special Finance Group and Approved Loan Store work with auto dealerships in the New York tri-state area to bring in additional business while also helping car shoppers obtain auto loans. Most Approved Loan Store customers have challenged credit and are unable to get approval for a car loan at their local dealership. With U.S. auto sales continuing to rise, car dealerships partnered with Special Finance Group will get to work with a wider range of car buyers and bring in higher sales and profits than their competitors, benefiting both customers and dealerships.

Located in Midtown Manhattan, Special Finance Group helps connect qualifying customers with dealerships willing to work with them through their website ApprovedLoanStore.com. ApprovedLoanStore.com also provides financial resources, educational materials, and the latest news from the auto lending industry, helping consumers make better informed financial decisions.

Contact:
Rachel Godfrey
info@specialfinancegroup.com
Phone: 877-217-2217

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