Tag Archives: Finance

Consumers With Low Credit Scores Dominate Auto Loan Market

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Car dealerships that aren’t offering car loans to consumers with challenged credit are missing out on significant business.

According to research by J.D. Power & Associates, consumers with credit scores between 0 and 649 now make up a whopping 15 percent of sales for new-vehicle buyers. To clarify, this does not mean that 15 percent of car shoppers have sub-prime credit, it means that 15 percent of actual sales are for people with sub-prime credit.

Analysts have attributed this trend to the fact that credit standards for auto loans are not as restrictive as they used to be. They have also pointed to the rise in auto sales as proof that lenders are willing to work with consumers regardless of their credit situation.

Special Finance Group is in the business of helping car shoppers connect with dealerships that want to work with them and get them into a new or used vehicle. Customers with challenged credit can get approved, and customers with good credit can find a better deal. Go to http:///www.specialfinancegroup.com to read more about Special Finance Group’s Complete Special Finance Solution and how it could benefit your dealership. You can also like Special Finance Group on Facebook and follow Special Finance Group on Twitter.

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Sub Prime Marketing Experiencing Lending Boom

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Just a few years ago, having some bad dings on a credit report would have made getting something like a credit card or even an auto loan an impossibility. That was then, but things are starting to change. With the recession on the rebound, lenders are starting to eye ball the very people they turned away just a few years prior.

Equifax has released a new report called the “National Consumer Credit Trends.” This report shows that new credit issued to consumers grew more than 10% to $782 billion. This was really due in part to the subprime borrowers. There has been significant growth in the amount being loaned out to that sector. Banks are starting to see that there is real money to be made here and their lending habits are reflective of this.

A lot of this is due to the banks realizing that the recession set many people back, the same people that are now paying back their loans. Amy Cutts, Equifax’s Chief Economist, says that, “Subprime today is not the same that it was five years ago. There are a lot of borrowers out there that have some pretty big blemishes now on their records” but “are in a better position than the ones we lent to a few years ago.”

People who were being denied loans are now starting to find themselves at an advantage. Every dealership should be definitely looking to capitalize on this opportunity. Special Finance Group is here to aid dealerships. To read more about how our Complete Special Finance Solution and see how it can do to help your dealership, take a look here. Be sure to like us on Facebook, that way you can see the latest trends in the industry and just how SFG can assist you.

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Subprime Auto Loans in an Upswing

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Recent studies are showing that dealerships that are not putting their resources behind special financing are missing out on a prominent and steadily growing market.

According to Automotive News, there has never been a better time to get in on special financing. Interest rates are dropping, even for high-risk loans, and 41.5 percent of auto loans are subprime auto loans. Only a few years ago, subprime auto loans were closer to a third of all auto loans, and now they are creeping up to half. Besides that, Standards and Poor has estimated that subprime loans in general will be higher this year. In 2011, subprime loans were 24 percent of all loans, and in 2012, they are expected to make up 25 to 30 percent of all loans.

With these numbers, putting resources into special financing is a no-brainer for any car dealership, and Special Finance Group can help dealerships make the most of their special finance departments. Special Finance Group brings years of experience as well as the latest in internet marketing and social media tools to bring in new clientele and hundreds of thousands of dollars in additional revenue.

Read more about Special Finance Group’s Complete Special Finance Solution here and find out what it could do for your dealership. Also, keep up to date on the latest from Special Finance Group by liking us on Facebook here.

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Shoppers Flock to Fuel-Efficient Cars

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Last month, the American auto industry continued its momentum into one of its strongest sales months in quite some time, shocking analysts, and the reason for its continued comeback might surprise you.

In the past few months, gas prices have been on the minds of millions of Americans with prices recently as high as $3.70 per gallon. High gas prices might seem like an odd reason for a surge in car buying, but when you consider that these car buyers are looking for more fuel-efficient cars that will cost less in the long run, it makes much more sense. During the month of February, 15.1 million vehicles were sold, and a good portion of those vehicles were compact cars like the Chrysler Fiat 500, the Ford Focus, and the Chevy Cruze.

The rising interest in fuel-efficient vehicles can be attributed to a more educated public (and thus a more educated first-time buyer) and long-time car owners getting fed up wasting money at the pump. Still, 15.1 million car sales in one month cannot be solely attributed to high gas prices, especially in a time when many people don’t have solid credit or money for a large down-payment, so what is driving car sales?

According to industry analysts, credit availability is also improving, and with many dealerships offering special finance options, more and more consumers are able to afford a car. What Special Finance Group can offer to dealerships are cutting-edge ways to connect with new customers and get those customers into a car. From the quality customer service offered by their call centers to their extensive knowledge of new media and social networking, Special Finance Group consistently brings in new business to its associate car dealerships.

To learn more about Special Finance Group’s tested and proven program, click here, and check out Special Finance Group on Facebook here.

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Car Sales Rise as Delinquency Rate Drops

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With car sales improving due to the economy seeing better times, it also translates to people being better about paying their bills on time. According to Transunion, the fourth quarter of 2011 was only the third time in the past 10 years that the national auto delinquency rate did not rise. According to the report, the rate of delinquency rate of borrowers 60 days or more days actually decreased for the ninth consecutive quarter.

Petere Turek, the automotive vice president of Transunion’s finance services said about the decrease, “Except in 2009 where there was no change and in 2003 where there was about a 4% drop, auto delinquency rates have shown upward movements between third and fourth quarters averaging in excess of 5%, ending the year flat is particularly interesting, because the number of new auto loans coming onto the books has consistently increased since the end of the recession, a primary driver of which has been an expansion in lending to consumers in the subprime market.”

 Transunion predicts that the delinquency rate will remain the same between the end of 2011 and 2012. They also predict that the auto industry will see an increase in demand for new and used vehicles. They definitely see that as people start to go back to work, they will be paying their bills.

 This is where Special Finance Group comes in. They work with dealerships to help generate more traffic. People are ready to get into new and used cars and signing up with SFG’s program is the way to make sure they are going to your dealership. Call today at 212-239-7270 or go online for more information. Like them on Facebook as well to see all the latest news.

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Car Sales Increase Continues into February

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Last year saw the resurgence of the auto industry in records sales.  January continued this trend and it looks like that trend will not be stopping anytime soon.   J.D. Power and Associates have come out with a report stating that new vehicles sales in February are going to surpass them.  How much exactly?  Retail sales are projected to in at 857,400 unites.  That comes out to an increase of 5 percent from the previous year.  That’s also more than a million unit increase in the sales from just last month.

“Retail light-vehicle sales in February are strong, which makes us modestly optimistic about the growth of sales going forward,” said senior vice president of global automotive operations at J.D. Power and Associates, John Humphrey. “More so, we’re increasingly confident that the fundamentals are in place to continue to support an upbeat sector outlook for the coming year.”

J.D. Power and Associates also detailed that 72 month leases accounted for 23 percent of all the sales done in February.  That’s the highest level it’s been in five years, which is an increase of 19 percent from 2011.

 The news keeps coming in that the tide has finally turned for the better.  With all the auto companies posting positive sales in the previous year and January, it looks like the trend is definitely going to continue into February.  Now is the best time to take advantage of this increased demand.  Contact Special Finance Group at 212-239-7270 or visit us online for any questions.  Be sure to also like us and follow on Facebook and you’ll stay up to date on all the latest news and offers

Auto Lending in High Demand as Market Improves

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The economy really did a number on credit loans. According to an article on Autonews.com, just three years ago, during the height of our current economic recession, even someone who had a salary of $400,000 and a good credit score of more than 700 wouldn’t be able to walk out of a dealership with the financing for the car he wanted.

Michael Mosser is the general manager of Chevrolet and Cadillac stores in Ann Arbor, Mich. He added to the conversation, “The world is upside down compared to then. Today, somebody with a 500 credit score I can get approved and in a Malibu.”

Lenders were forced to cut back on extending credit when the collapse happened. This in turn was a driving factor for the reason why the major car companies, such as General Motors and Chrysler, saw sales that were the lowest they had seen in about 3 decades. It didn’t take long after that for both companies to file for bankruptcy.

As the economy improves however, so does the demand for cars. Due to this increase, bank lenders such as Bank of America and Capital One Financial Corp, are working to get car buyers approved fast and with great rates to keep up with the market. In the US, vehicle sales have risen 10 percent to 12.8 million last year. January turned out to be the one of the best sales month automakers have seen since the cash-for-clunkers program in 2009.

With lending seeing such an increase and banks doing everything they can to keep up with subprime borrowers, now is the best time to sign up for Special Finance Group’s program. Contact us today at 212-239-7270 for any questions. Make sure to follow on Facebook as well so you can stay up to date on all the latest news and offers.

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Lack of Used Cars Drives New Cars Sales

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CNBC has put out an analysis of the used car market. It’s findings did not bode well as the used market was hit hard by the collapse of 2008. Due to the economic downturn, many vehicle manufacturers cut their production on a large variety of makes and models to keep their doors open. While the economy is starting to come back to better times, car owners that have seen harder times due to the recession have been deciding to keep their cars rather than trading in for a new ridge.

How much exactly? Well, the amount of three and four year old cars for sale on the market is down by about 19 percent. That comes out to a total of around 5.7 million used cars that would’ve been on sale or available. Since this supply has taken such a hit, it’s no surprise to see that used car buyers are now looking to the new car market instead. Thankfully, it was a good winter for the auto companies. Even January sales showed a vast improvement over the previous year with about 13.5 million. Ford and Chrysler have already been putting out some good numbers for the month as well.

There’s definitely a high demand out there for vehicles and for the buyers with challenged credit. There is no better time to sign up for Special Finance Group’s Complete Finance Solution than right now. You can view the program here and go to the main website to see just what SFG can do for you and your dealership. Don’t forget to also follow them on Facebook.

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Interest Rates Low Into the New Year

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Talk of the economy of almost completely inescapable these days.  Things seem to be taking a turn for the better however, with the auto industry having very positive news about their sales upswing in 2011.  Unemployment numbers just came out the other day, showing at 8.3%, the lowest in three years. Money is starting to get back in people’s pockets and for the person looking to purchase a vehicle the lenders are expected to give some great rates in 2012.

Interest rates have seen a steep drop of late.  For example, a 60 month- loan given in November of 2008 to someone with excellent credit would be looking at paying an annual percentage rate of 6.54 percent.  That same loan being made today would be at 3.73 percent.

Melinda Zabritski, the director of automotive credit for Experian, has an explanation.  She believes that consumers are no longer making impulse buys but are rather being more cautious with their money and planning out a car purchase in advance.
That’s not to say that just because you have bad credit means that you’ll get guaranteed an excellent rate.  For subprime borrowers (people with credit scores of 619 and below) they can expect to have to provide a 20 percent down payment.  Due to this, Experian’s Zabritski explains that these customers should be looking more at used cars where there are better loan opportunities.  According to Experian’s data, the used car may have a higher interest rate but this is offset by the lower cost of the vehicle along with a better chance of being approved.

There are some basics people need to know before purchasing a car.  These range from setting up a budget, knowing your credit score by doing a credit check, and being prepared to make a larger down payment.  The signs are there with the economy with the recent turn for the better.  People with low credit are still having a tough time with auto loans, but it’s starting to look more optimistic.

2012 is going to be the year to get people into the car they want.  This high demand from consumers with challenged credit means that there is no better time to sign up with Special Finance Group’s Complete Special Finance Solution.  You can learn more about the program here and go to http://www.specialfinancegroup.com to get more information.  Don’t forget to like them on Facebook to stay up to date on all the latest news in the industry.

Tax Returns = Higher Down Payments = Lower Interest Rates

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Every new year brings with it many new things. Some of these things are resolutions like to get more sleep or to lost some weight. One thing that usually is forgotten from the start is that a new year is also time to do the taxes. Now is the time of the year where people start to send them in and will begin to receive their tax returns. Getting a tax return is also something to try to figure out what to do with.

According to an article in Yahoo Finance, the majority of people will be looking to pay off most of the debts they have accumulated throughout the year and in the holiday shopping season. There are some, however, that are looking for options. Many dealerships are keeping this in mind as they have begun to advertise just what intrepid buyers should do with the bundle of cash, use it for a down payment on a new car.

The lending climate of 2012 is starting to show an upswing. Improvements are starting to be seen as the economy starts to recover. Even with these conditions, however, sub-prime customers will still be expected to pay significant down payments. That’s definitely not a deal breaker at this point, though. The average tax return of 2011 was $2,913. That means that a perspective customer might be walking around with around $3,000. It is a great opportunity for dealerships to take advantage of encouraging a customer to come in to put a larger down payment towards the purchase of a new car. The difference between putting $1,000 down and $3,000 down can be about $50 a month.

The demand for sub-prime loaning is picking up this year. Now is your chance to sign up with Special Finance Group’s Complete Special Finance Solution. You can learn more about this program here and go to http://www.specialfinancegroup.com to find out more. You can also follow us on Facebook.

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