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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.

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Inventory: The 4 Most Popular Car Colors

sfgadmin — Fri, 15 Nov 2013 22:22:33 +0000

What are the most popular car colors in the United States, and how does that affect trade-in value? A new article from WardsAuto shed some light on the subject.

According to WardsAuto, the four most popular car colors are black, white, gray, and silver, and comparatively, cars that are not one of those four colors can be worth hundreds or even thousands less. The reason is because American car buyers see those four colors as standard, classic colors and universally appreciated. More people want to buy a black or silver car than a bright neon blue or green vehicle, and this opinion is so widely held that last year, 70 percent of vehicles built were black, white gray, or silver.

Why should dealerships pay attention to car color trends? First of all, customers who come in looking for a trade-in need to have the proper expectations. If they bought a car with a specialized color, they should not expect to get as much for the trade-in. Second, dealerships need to remember these standard colors when reviewing their used car inventory. The majority of people want to buy cars that are one of these four colors, so while it is fine to have the odd red, green, or blue car in the mix, it is safer to have these four colors in the majority.

Want more tips and solutions for your dealership? Connect with Special Finance Group online through Facebook, Twitter, and LinkedIn, and go to http:///www.specialfinancegroup.com to learn how Special Finance Group can give you the Complete Special Finance Solution.

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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.

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!

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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.

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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

Adapting for an Internet-Age Car Buyer

sfgadmin — Fri, 02 Aug 2013 20:36:41 +0000

The internet has changed the auto business fundamentally and irreversibly. Consumers aren’t going into dealerships anymore to shop for a car. 92 percent of Americans will research a car thoroughly before even walking into their local dealership, and they will come armed with reviews, the features they expect to get, and the price they expect to pay for the car. They know all about the cars on the lot as well as vehicles sold by competing brands.

How can dealerships adapt and brand themselves for a savvier consumer? The key to all of it is convenience. The reason why consumers go online to research cars instead of going around town for a lot of test drives is convenience. They want to take as few trips to dealerships as possible. If they can go to one place and take care of everything in one day, they will be more receptive. They will love it even more if they can simply fill out an online form and be directed to a dealership in their area waiting to help them.

Dealerships with Special Finance Group’s Complete Special Finance Solution can offer that level of convenience to their customers. As part of Special Finance Group’s Complete Special Finance Solution, dealerships get the advantage of a fully-staffed business development center which tracks internet leads, answers customer questions, and schedules appointments to stop by the dealership. With Special Finance Group, you can provide a new, more convenient way for customers to purchase a vehicle from your dealership.

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2013: Auto Sales January to June Top 7.8 Million

sfgadmin — Tue, 16 Jul 2013 20:44:47 +0000

Sales numbers are in for the first half of 2013, and car dealerships are ready to celebrate.

From January through June 2013, auto sales were at pre-recession levels with over 7.8 million sold in the United States, and industry insiders are predicting that the last half of 2013 will only get better. According to the Poughkeepsie Journal, loosening credit restrictions and lower interest rates will likely boost sales numbers even higher as the year goes on.

What are all these car shoppers buying? Well, the answer isn’t simple. Truck sales have skyrocketed this year, but subcompacts have done very well amongst the younger crowd. Certain minivans and family-style SUVs like the Honda Odyssey and Toyota RAV4 also sold well with 26 percent and 36 percent sales jumps respectively. Dealerships will need to maintain a varied inventory, and if they are targeting subprime credit clientele, they will need to give special attention to their used inventory.

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 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.

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New Colorado Law Protects, Clarifies Dealership Rights

sfgadmin — Wed, 12 Jun 2013 18:22:59 +0000

Last Wednesday, Senate Bill 265, which clarifies and re-enforces current auto dealership protections, was signed into law in Colorado.

According to F&I Magazine, the new law will update dealership protections passed in 2009, 2010, and 2011. These protections included limiting manufacturer-mandated renovations as well as giving dealerships the right of first refusal in the case of a manufacturer filing bankruptcy, closing a location, and then opening a new franchise in the area.

The biggest problem that dealerships ran into when reinforcing the new protections was manufacturers claiming that the laws didn’t apply to franchise agreements signed before the law was passed. Dealerships that ran into this problem often didn’t want to cause more trouble with the manufacturer, so they didn’t speak up. Fortunately, a few spoke up including Don Hicks, CEO of Shortline Auto Group, and they prompted the bill’s introduction.

One of the bill’s sponsors Colo. Sen. David Balmer praised Governor Hicklenlooper for signing it into law, stating, “Now Colorado will lead the country in protecting the free-enterprise rights of auto dealers and their car-buying customers.”

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May Auto Sales Make Up for April Slump

sfgadmin — Mon, 03 Jun 2013 19:57:08 +0000

In retrospect, April was a bit of a disappointing month overall for auto sales, especially compared to the rest of 2013 and late 2012. As the numbers come in from May, however, it is clear that this is going to mark a strong start to the summer.

Among the month’s winners were General Motors, who reported the best monthly sales since September 2008, as well as Nissan with its best May sales ever. According to early reports, Chrysler, Ford, and Toyota also had increased sales in May, but as of publication, those numbers are not finalized yet.

Going into the summer months, pickup sales are expected to continue rising. People are buying them for both business and pleasure, from home construction to camping and off-road recreation. The F-Series, Ram, and Chevy Silverado have all sold very well so far and are expected to see a healthy spike when May’s sales numbers are finalized.

With May over, summer is officially here. Are you ready 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.

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