Tag Archives: poor credit

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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Subprime Loans Bring In High Profits for Car Dealerships, Low Delinquencies for Consumers

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Lenders might have shied away from customers with poor credit in recent years, but sub-prime auto loans are proving to be a great idea for American car buyers and dealerships alike.

According to Fitch Ratings, the U.S. auto loan market is continuing to thrive and improve, even as lenders are approving sub-prime credit clientele. There were less charge-offs and 30-day delinquencies in the second quarter, and overall, lenders had extremely low credit losses. Besides that, car sales have kept going up through the summer and are expected to hit their height of the year in August before plateauing in autumn. Now more than ever, dealerships can get more car buyers approved and move more of their inventory out the door, raking in massive profits.

Dealerships across the country are putting more time and money into their special finance department, but there is a downside to all of it. Unfortunately, many salespeople are spending their time calling auto loan leads and trying to get people in the door than they are actually selling cars. This is where Special Finance Group comes in. Special Finance Group supplements a dealership’s special finance department and gives the dealership more time to sell and less hassle getting people in the door. Dealerships in the Special Finance Group network have access to a call center that turns leads into car loan appointments as well as their own auto loan leads and targeted online advertising.

To learn more about Special Finance Group’s Complete Special Finance Solution, go to http://www.specialfinancegroup.com, and keep up with the latest from Special Finance Group on Facebook, Twitter, and LinkedIn.

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Why Generation Y Isn’t Buying Cars (And How to Change It)

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Once upon a time, not that long ago, young drivers couldn’t wait to get their first car. They would anxiously await their 16th birthday, hoping for a car in the driveway with a giant bow so they could throw a tantrum because it was the wrong color. Nowadays, Generation Y is turning out to be significantly less interested in cars, and it is showing in car sales numbers. In 2001, car buyers under 35 made up 24.4 percent of sales, nearly a quarter of sales. In 2010, only 9 years later, that percentage has dropped by almost half to 12.7 percent.

Why aren’t young drivers buying new cars? Some people say that young people once used cars as a form of self-expression and individuality, but other outlets like Facebook and Twitter are a cheaper way to achieve that. Others point to the rising popularity of Zipcars or other car-sharing services, and they claim that car companies don’t know how to appeal to a young generation.

All of these opinions are almost completely wrong. Facebook is not stealing away car sales. Nobody ever got to work driving a Tweet, and if someone honestly believes that young people bought cars to express themselves, their opinion isn’t exactly well-informed. Having a means of transportation is a necessity, and blaming low car sales amongst young people on social media is laughable. Car-sharing is the only factor worth taking into consideration amongst these ideas, and car-sharing is certainly not the only reason why young drivers are not buying new cars. Young people are not buying new cars for the same reason why young people are renting instead of buying an apartment or house. Generation Y is still recovering from the toxic combination of a poor job market and student loan debt, and in their minds, buying a new car is a luxury, not a necessity.

How can dealerships get past a young driver’s hesitant nature and tap into this market? The answer is simple: used cars. Used cars are more economical and will not lose their value as quickly as new vehicles. If more dealerships encouraged young car shoppers to check out their lower-cost used inventory, they would move a lot more inventory and renew an interest in young drivers to stop by a dealership in the first place. Car dealerships don’t need to do battle with Facebook or do anything out of the ordinary. Young people still need cars, and dealerships can still sell cars so long as they understand the challenges facing Generation Y.

If your dealership is looking to attract more car buyers of all ages, learn more about Special Finance Group’s Complete Special Finance Solution here. Also, you can learn more about Special Finance Group by liking Special Finance Group on Facebook, following Special Finance Group on Twitter, and following Special Finance Group on LinkedIn.

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ABC News: Shop Loan First, Car Second

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Car shoppers looking for the best deal are getting some interesting advice from ABC News: Worry about your financing before picking out the car.

According to a recent article from ABC News, consumers with an average or less-than-average credit score will benefit from searching for an auto loan first and keeping their options open on the vehicle. Edmunds.com features editor and consumer advice expert Caroll Lachnit lent her advice to the piece and encouraged even people who had been turned down in the past to try again to get a car loan. Lachnit told ABC News, “(Even) consumers with poor credit are able to get back in the market.”

How does this news affect Special Finance Group and its network dealerships? Well, more consumers shopping for a new or used car will be looking for a dealership and lenders willing to work with them first and then thinking of the car second. Special Finance Group’s lead generator taps into these consumers, and from there, Special Finance Group’s highly-trained call center sets appointments for these customers at a network dealership. The result is that dealerships in the Special Finance Group network will all get more potential customers, bringing in thousands in additional revenue every month.

Does your dealership have the Complete Special Finance Solution yet? Learn more about it by going to http://www.specialfinancegroup.com, and get connected with Special Finance Group on Facebook, Twitter, and Linked In.

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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.

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Americans Think They Are on Facebook Less, Actually on Facebook More

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Last month, a survey was making the rounds claiming that Facebook users were logging into Facebook much less and weren’t staying on the site for as long. As it turns out, that survey might have been completely wrong.

Reuters, who conducted the initial survey, asked 1,032 Americans how often they used Facebook and how long they spent on the site. Over a third of American Facebook users responded that they were using the site less, and only a fifth of respondents said they were spending more time on the site recently.

As it turns out, though, their perceptions of how much time they spend on the site and the time they actually spend on the site do not match up. According to Nielsen data, people spent an average of 7 hours 9 minutes on Facebook during the month of April, more than Google and YouTube combined. It is a marketer’s dream come true. Users think they are spending less time on Facebook, but in reality, they are spending more time on Facebook.

At Special Finance Group, we are constantly keeping an eye on how Facebook, Twitter, and other popular social media sites are being used and finding new ways to bring in potential car buyers. As part of the Special Finance Group network, a dealership will get to reap the benefits and will get new customers walking through their door every month thanks to the work done by Special Finance Group’s SEO/ORM team.

To learn more about Special Finance Group’s Complete Special Finance Solution, click here or go to http://www.specialfinancegroup.com. Also, keep up with the latest from Special Finance Group by liking Special Finance Group on Facebook and following Special Finance Group on Twitter.

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.

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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.

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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.

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