Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
Amy Taggart

Amy Taggart Marketing Manager

Exclusive Blog Posts

You Have a Position to Fill – Who Do You Hire?

You Have a Position to Fill – Who Do You Hire?

As much as you try to avoid employee churn, you’ll always need to hire someone. It might be to replace a staff who’s moved on in their care…

6 Tips for Better LinkedIn PPC Advertising

6 Tips for Better LinkedIn PPC Advertising

With a little over a year’s experience with LinkedIn Advertising and some insights from a connection at LinkedIn, I’ve put together a list of 6…

The 3 Laws of Extreme Ownership

The 3 Laws of Extreme Ownership

“These are all things that may help you justify your results. But is your dealer any happier because of this?” I just finished reading a…

The Q1 Inventory Glut - Expert Insight

The Q1 Inventory Glut - Expert Insight

You've heard about it, read about it, and probably experienced it. Q1 for the auto industry was a pretty rough one. Experts are diving into what the pr…

Transforming the F&I Experience

Transforming the F&I Experience

In this post, I want to share a short story that led to a revelation for one F&I product provider as well as try to remind us that while technology will co…

Lenders Approving More Auto Loans for Special Finance - Are You Taking Advantage?

Checking out data from CNW that came out last week -- they've got tons of data going back years and years, it's amazing.

There's one report in particular that caught my eye: "Approval Rates by FICO"  - document 1483 for those keeping score at home. Wish I could share it with you, but you have to subscribe to get the insider info. (Maybe Art Spinella will give us some sound bites in the coming weeks.)

What this Excel spreadsheet shows is the absolute destruction of the loan approval rate for the subprime segment  -- from a height of 46.29% in August 2006 to the crushing low of 4.16% in December of '08. The numbers are reflective of what we know, which is that lenders voted with their feet when it came to financing a car for anyone with a score below 620.

Fortunately, there's been a slow climb back up since then...all the way to a whopping 8.92% approval rate for car loan applications in the subprime category for September 2011.  The rate slid a little during Q3 from some months over 10% in Q2, but that 8.92% for last month is still a 28.9% increase over September 2010.

What does that mean for us, who cater to the consumers who fit that profile?

Lenders are still cautious about lending to anyone who qualifies for special financing. But they're dipping their toes back in the water and finding the temperature more and more to their liking.

My question to you is: what are you doing to take advantage of the lenders who are wholeheartedly getting their feet wet?

 Unlock all of the community & features  Join Now