The Key to Special Finance – Take the Time and Do It Right

ID-10081492In the world of special finance, everyone claims to have the secret or trick to creating a successful special finance department. Their trick is something no one has heard of, and even if their special finance department has other problems, all that a dealership has to do is follow this rule.

Actually, there is a rule that every special finance department should be following if they want to earn long-term success, but while it is simple to understand, it is more difficult to follow. The rule is to take your time and do each deal right. No excuses and no cutting corners. Everything good in life takes work, including business, and unhappy customers don’t give referrals.

If you are not sure what it takes to get it right, here are a few guidelines. First, customers need to feel that you are on their side. From the minute they walk in the door, they should be treated with respect, and when they start the process of getting approved, explain the entire process to them and make sure they understand. Do not condescend to them or treat them with disrespect. As the saying goes, it doesn’t cost anything to be nice.

Second, follow up with past customers. Even if they aren’t looking to trade in or buy a new car for themselves, maybe they are looking for a used car for their teenager, or they have a friend or relative looking for a car. If you treated them with respect and fully explained the terms of their auto loan, they will remember, especially if you follow up with them.

Finally, set the proper expectations for the customer with respect and kindness. It might not be feasible for them to get the car of their dreams if they have low credit or no credit, but they might be open to a good used car if they have been treated with respect and if they fully understand their credit situation.

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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More Than 1 In 4 Car Loan Applicants Have Something In Common

ID-10064739If 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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New Headquarters, Upgraded Facilities Announced for Special Finance Group

ID-10029185In 2014, Special Finance Group will undergo its biggest expansion and technological upgrade to date, culminating in a new state-of-the-art headquarters in Ramsey, NJ.

Special Finance Group, a specialist in sub-prime auto loans, works with dealerships in the tri-state area to build and streamline their special finance departments. Their Complete Special Finance Solution includes a dedicated call center, special finance experts that work within the dealership, tracking of leads from first contact to sale, and more. The company has already announced hiring at the new headquarters, creating opportunities within the Ramsey community.

“Our new headquarters offers more than just space to grow,” owner Todd Campanella stated. “We have upgraded our facilities in a significant way, and we know our customers will love the difference.”

The company’s upgrades include an entirely new customer service phone system, improved customer tracking, and safeguards for ensuring higher quality service on all service calls. For example, managers will have oversight on all customer service calls to ensure representatives are providing correct information, and if necessary, managers can provide specific feedback to representatives, even as the call is happening.

Special Finance Group’s Ramsey headquarters is located at 275 North Franklin Turnpike, next to the Interstate Shopping Center. The office can be reached at 212-239-7270, and the company’s website can be found at www.SpecialFinanceGroup.com.

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Inventory: The 4 Most Popular Car Colors

ID-100113840What 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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Dealership Employees and Facebook: New Laws, New Challenges

ID-10077359It is no secret that social media technology has advanced quicker than most people’s social skills and common sense. The popular website Failbook is full of people who didn’t take a minute to think before posting on Facebook, and now they find themselves out of a job. Today, an online rant or a stupid Facebook post can get someone fired, but employers, including car dealerships, need to be clear on the laws of employee social media use or they could end up in trouble themselves.

According to a recent article by Michael Gifford over on WardsAuto, several states have laws on the books that offer some protection for employees on social media. For example, it is against the law in California, Delaware, Illinois, Maryland, Michigan, and New Jersey for employers to require employees to disclose their Facebook account and login password. Employers can view an employee’s Facebook profile if it is openly available to the public, but if the employee has adjusted their privacy settings to hide this information, an employer cannot require an employee to show their Facebook page.

In Gifford’s article, he brings up a real-life example that shows these laws do allow for shades of grey. A hospital employee was suspended for posting disparaging comments on their Facebook page regarding a patient and the paramedics treating the patient. The hospital was taken to court, but ultimately the hospital was not found at fault because the hospital had not sought out the employee’s Facebook page. Another employee who had access to the Facebook profile saw the comment and brought it to the hospital’s attention.

Do you know what to do if an employee makes inappropriate comments online? If not, we recommend reading up on the Stored Communications Act and any other applicable state laws regarding employee social media rights. Keep in mind that many states have passed new laws addressing this issue, so if you have a potential problem with an employee, get all the facts first and don’t make any rash decisions. Dealerships can also avoid problems by establishing social media guidelines for employees and making sure that employees understand them.

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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The Five Kinds of Car Shoppers

ID-10036550One of the biggest stereotypes of car dealerships is the pushy salesperson. This is a stereotype that persists, and unfortunately, there are plenty of car salespeople who fit the profile and give it some truth. To make a better, more successful dealership, salespeople need to learn the line between guiding a sale and pushing a customer so hard that they walk right out the door.

The first step is to better understand the kinds of people walking into the dealership and whether they are predisposed to add-on products and warranties. According to WardsAuto contributor Steve Finlay, customers can be broken down into five categories. The first category is people who want the full package. They want extended warranties, add-ons, the optional features, and anything else that can come with the vehicle. The second category is people who will refuse any add-ons. No matter what you say, they will give you the cold shoulder and will likely walk out without buying a car if they feel pressured. The third category is people who need more information before they will commit to F&I products. Unfortunately, this category is easily confused with the fourth category of people who pretend they are interested but ultimately won’t buy. They will ask all kinds of questions and use up your valuable time, but they never had any intention of buying. The fifth and last category is people who honestly have questions, but they want to buy.

Finlay estimates that forty percent of customers fall into the fifth category, which is good news. The bad news is that salespeople usually encounter people who fall in the fifth category after dealing with people who fall into the second and fourth category. The salesperson gets done working with a customer who is belligerent or wasting their time, and they carry the baggage of that customer into their dealings with the next customer.

How can you avoid this problem? The most important thing to remember is to listen. Listen to the customer, and in your head, try to qualify what category they fall in. Do not assume right off the bat that this person wants to waste your time or is not actually interested in buying. These kinds of assumptions and the actions and attitudes it breeds will make you lose out on future sales. People will pick up on that attitude and will not respond well to it.

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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Fake Paystubs: A Costly Scam

ID-100134206In the past year, special finance departments across the country have been faced with a new problem, a problem that can destroy relationships with banks and lenders and lead to millions of dollars in fines and prison time.

One of the most important documents needed when applying for a subprime auto loan is a paystub. A paystub proves that the applicant is employed and making a certain income. Unfortunately, some desperate people who haven’t been able to obtain financing are producing fake paystubs in hopes of getting approved for a car loan. This story was first reported by Greg Goebel over on F&I and Showroom, and sadly, this is not an isolated incident. There are websites that allow users to print fake paystubs and YouTube videos that show how to produce fake paystubs.

To be absolutely clear, creating fake paystubs is illegal, and it is a costly crime. Offenders can face up to 30 years in prison plus fines up to $1 million. It is illegal to produce them for customers who are paid under the table. There is no circumstance under which you or your dealership should assist a customer in producing fake paystubs, and as much as possible, you should verify the paystubs are authentic.

Even if your dealership is fooled by fake paystubs and completely blameless legally, these incidents can still damage your dealership’s relationship with banks and lenders. Those relationships are vitally important to a successful special finance department, so be aware and know what to look for in spotting fake paystubs.

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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Changes Over at Hyundai and What Dealerships Can Learn From It

ID-10088888It 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

ID-10045478-300x300Overall 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.

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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2013: Subprime Auto Loan Originations Up, LTV Close to Record Levels

ID-10098865For 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.

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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