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Running Special Finance Department the Right Way

Posted on: September 24th, 2012 by credit

It is just necessary for dealers to start establishing their own special finance departments as there are more car buyers with non-prime credit who are seeking financing. Lending to borrowers with bad credit is no longer seen as a highly risky business today but as more lucrative than selling cars. With this trend, dealers should keep up with the competition by building a separate department to cater to subprime leads. Here are some basic pointers on running a special finance department rightly:

Expand your network of lenders. With the influx of subprime borrowers, it is just important for you, dealers, to be connected with many lenders. If you only have a few lenders, you have fewer chances of closing sales. For example, a car buyer is willing to buy a used car as long as you could fix financing for him or her. However, no lender from your network agreed to provide financing for the car buyer. You would end up losing the sale. To avoid this dilemma, establish relationships with various lenders. Moreover, if you could not find a lender for your car buyer, offer another vehicle to your car buyer which he or she could most likely get financed for.

Sell the right cars. Make sure that you have the right inventory. One thing you should understand about running a special finance department is you are dealing with a special kind of car buyers. Subprime leads need a different approach. This means that you cannot sell them cars that you also sell to people with good credit. Offer your subprime leads car models that they can afford and which your lenders can agree to finance.

Train your special finance staff. Hire people who have experience in handling subprime borrowers. Then, train them in every aspect of the credit application. Sometimes, the special finance manager would be so busy that he or she cannot do the final processing of the application. If your prospects would have to wait, they might probably end up in your competitor’s hands. Teach your sales people how to conduct interviews, review credit applications, and the like. In this way, you will avoid losing sales unnecessarily.

Veer away from putting up deceptive ads. Everyone may be doing it but such strategy would not place anyone in a permanent position of success. Your ads should not indicate a promise that your prospects would not receive when they step into your dealership. For example, don’t tell them that you can finance anyone if you are not willing to cater to people with really low scores.  This practice will only mar your reputation in the long run. Choose to be honest with your special finance ads instead.

Seeing Subprime Auto Leads in a New Light

Posted on: June 11th, 2012 by credit

Subprime auto leads are often deemed by dealers as more of a risky investment than sales opportunities. It is true that subprime auto leads, also called special finance leads, comprise of people who are credit-challenged and high credit risk, but it does not mean that they cannot bring more sales to dealerships like regular auto leads.

Although the global economic crisis has caused several businesses to close down, it ironically gives car dealers like you potential sales through people seeking financing. Because of the crisis, more and more people have been acquiring a bad credit, which makes buying a car a challenge for them. In effect, many car shoppers have already been turning to auto financing. Moreover, a lot of them are with low credit rating which makes it even harder for them to get approved for a loan and purchase a car. With the growing number of such type of car shoppers, special finance auto leads’ potential to increase a dealership’s sales seem to be overshadowing the perceived risks that dealers would face in dealing with them. In addition, there are many cases where these leads convert into sales more than regular auto leads do.

Dealers then have to change their attitude toward subprime auto leads. Most car dealers are hesitant to pursue such leads, perhaps because of a bad experience they had in financing bad credit borrowers before or they simply see them as not a potential market or the risks. However, some dealers say that dealers today should have a widened vision of special finance leads. They say that larger financial institutions are accommodating such leads so, it could imply that there is now less risk in dealing with such leads. Moreover, technology is an added advantage as it can help in managing and monitoring special finance leads.

Some dealers also say that the special finance market is growing and dealers have to be more open-minded to such opportunity. As has been mentioned, there is a growing number of people seeking special finance with the global economic crisis as a great contributor. As a dealer, you have to keep in mind that although borrowers with low credit have a less credible credit history, they were still once with good credit. In fact, there are cases where subprime car buyers buy premium cars instead of low model cars. In other words, subprime auto leads are profitable.

As a final note, don’t waste today’s opportunity with special finance leads and know the secrets of successfully turning them into sales—have the right inventory, the right sales personnel, and the right system of managing and converting them.

Bad Credit Auto Leads Are Valuable Too

Posted on: May 30th, 2012 by credit

Auto dealerships need to meet a certain amount of sales in order to stay in business. They will not be able to do this if they rely solely on walk-in clients. To look for potential clients, they often rely on auto leads so they can market their products to them. However, these auto leads are sometimes focused only on a specific group of people, namely, people who have good credit scores.

The economy is terrible these days. According to FICO, a huge number of Americans have poor credit scores. People who have poor credit scores cannot get auto loans through traditional means. However, this does not mean that these people are no longer interested in buying cars. It does not also mean that they do not have the capacity to pay for a new car. On the contrary, people with bad credit can get their auto financing from lenders that specialize in dealing with people like them. There are a number of reasons why a person has a bad credit score and in most cases, people with bad credit do whatever they can to change this. Auto dealerships must recognize that there is a gold mine among Americans with bad credit. They can look for these people by using bad credit auto leads.

Auto dealerships can hire companies that specialize in generating bad credit auto leads. These companies have a huge database of people who bought cars before or are interested in buying cars in the near future. Companies that specialize in these kinds of leads usually get their information from bad credit auto loan lenders. These companies can also provide other information such as age, gender and location as well. If auto dealerships combine both regular auto leads and bad credit auto leads, they can reach a bigger audience which translates to a higher profit margin for them. They should not be wary of getting people with bad credit as their customers even if at first it seems like a bad idea. People with bad credit are still potential customers and once they get funding from a lending institution, they are more than willing to buy a car.

When hiring a lead generator company, auto dealerships must make sure that these bad credit auto leads are generated in real time and are not outdated. A quality auto lead is usable and can guarantee a sale. They can look for bad auto lead generator companies online.

All About Subprime Leads

Posted on: February 10th, 2012 by credit

People interested in buying a car would often browse the Internet for available and possible loan offers.  However, car dealers may sometimes find these prospects as insufficient in meeting their sales quota.  They would then have to be open to other possible prospects–interested car buyers with subprime credit.

These buyers are interested in purchasing a car.  However, because of their less than perfect credit, they are having a difficulty in finding a good auto loan offer that is affordable to suffice for their car purchase.  Car dealers should be on a look out for these kinds of leads.  Subprime leads are seriously interested in buying a car.  This also implies that they are already waiting for a response once they dropped their information in.

Car dealers can purchase subprime leads from lead companies like Approved Auto Leads.  It is also possible to purchase from banks, credit unions and even from other car dealerships.  These are usually loan applications that were not able to pass the loan company’s criteria.  Car dealers can also search for this type of leads from online loan companies.

In purchasing subprime car leads, car dealers should make sure that they have spent time doing some research on subprime leads and the possible sources from which they can be obtained.  Just like with any other types of leads, these leads also vary in prices and conversion rates.  Car dealers can compare the prices and conversion rates from various lead companies to come up with a good decision.  Cheap leads are not necessarily good buys, neither they can be considered as substandard buys.  The case is also true with expensive leads.  Not all expensive leads are just abusive pricing, neither do they guarantee high conversion rate.  It really takes some wit and wisdom for car dealers to determine which deal is the best one.

Another thing that car dealers should consider in purchasing a subprime auto lead is the exclusivity of the leads.  It is useless if the lead company would also sell the same lead to other car dealers.  Car dealers then should make sure that a lead company do not sell the same leads sold to them to other dealers nor resell the leads to them.  There is also no point if the lead is just a resale.  The deal might be closed already or the prospective car buyer is not interested anymore.

Although there is risk in dealing with subprime car buyers, purchasing subprime leads can greatly help car dealers in meeting their sales quota.  Moreover, these leads are really interested in buying a car despite their damaged credit.  This implies that they even have higher conversion rates, by estimate, than regular car leads have.  They are more likely to entertain the car sales representative’s call and listen to what he or she has to offer.  Aside from that, car dealers are able to give hope to these interested car buyers.  Because of their subprime credit, they find it hard to get approved in car loans.  If car dealers would entertain subprime car leads, not only do they give hope to these people but they are also able to open more access to subprime auto leads.


Quality Subprime Leads – What Car Dealers Need to Increase Sales

Posted on: January 8th, 2012 by credit

In a time when car buyers are no longer flocking to car dealerships, the automotive industry is relying on auto lead generation to boost their sales.  By obtaining auto leads, car dealers find out which individuals are truly interested in buying a car and getting financing for it.  Auto lead generation companies employ a number of techniques to locate prospective car buyers and get their information, and these are either sold or leased to car dealers.  These days, auto leads are what keeps car dealerships in business, especially because traditional marketing and advertising methods are no longer effective.

If there is one type of auto lead that car dealerships should acquire to make sales, it would be subprime leads.  A subprime lead is an individual who is interested to buy a vehicle and get financing to make a purchase.  What sets this type of lead apart from regular auto leads is that this customer has bad or poor credit.  He or she may have applied for a regular auto loan from lending institutions like banks and credit unions, but was turned down because of his or her credit standing.  Traditional lenders like the aforementioned do not grant auto financing to credit-challenged individuals because they are considered high risk.

It would be beneficial for car dealers to obtain subprime leads because these can truly increase their profit.  These customers can help any dealer take cars off their lot.  They may have been denied financing by traditional lenders, but they can obtain financing elsewhere, such as online lending companies that specialize in subprime auto loans.  Right now, more and more people are becoming credit-challenged, mainly because of the weak economy.  Hence, car dealers would be missing out on a huge number of potential customers if they do not avail of subprime auto leads.

It is important for car dealers to know that it is simply not enough to have subprime leads to enjoy a boost in sales.  The leads acquired must be quality leads: they should be genuine, updated and exclusive.  Used, recycled and old leads would be useless to a dealer because these would not result in a sale.  Buying such leads would only be a waste of money.  Thus, it is very important to find a subprime lead generation company that offers only quality leads, a firm that will guarantee the increase in sales that every car dealer desires. 

One lead generation company that car dealers can choose is Approved Auto Leads.  The company has been providing car dealers with real time subprime leads for more than a decade.  The subprime auto leads that Approved Auto Leads offer really sell cars for the client car dealer.  With this lead generation company’s services, a car dealership can be more profitable despite the economic downturn.

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