When it comes to finding an appropriate match between our proactive consumers and a qualified dealer I like to take a consultative approach with the dealership.

I am able to provide advice not only on how to set appointments and get consumers into the showroom but to ultimately get them approved. While some dealers are still hesitant about special finance customers, it is a fact that almost 40% of Americans now fall into that subprime category.

Most dealerships are turning to subprime to avoid losing market share to competitors who have been working with secondary finance for years.

The most important thing is to know how to treat the customer once they are in the door:

• Make sure they understand what the limitations are to buying a car and what it is that they qualify for.
• Show features and benefits of the automobile that they are interested in.
• If the customer doesn’t qualify, still counsel them on why the bank denied/declined their credit. Help guide them on what they can do to improve their credit.
• After the sale or even denial, follow up with the customer.

Follow-up or special attention to a customer who is unqualified or may even have been declined may seem like a waste of time.  However, this is actually an opportunity to differentiate yourself from all the other dealerships they have experienced.

All customers remember good experiences, and they will remember how helpful you were when their financial situation changes. If you are courteous and helpful the customer will even refer their friends and family to you for their automotive and financing needs.

Some dealers understand the need for a secondary department but are still in the process of developing a portfolio of subprime lenders or obtaining the right type of inventory.

Mike Sadowski is an auto finance marketing consultant for Carloan.com. He spent 14 years in the car business in Richmond, Virginia and has been helping dealers manage their Carloan.com marketing programs since 2003. You can reach Mike at 804-521-8577 or mikeATcarloan.com.

When it comes to finding an appropriate match between our proactive consumers and a qualified dealer I like to take a consultative approach with the dealership.

I am able to provide advice not only on how to set appointments and get consumers into the showroom but to ultimately get them approved. While some dealers are still hesitant about special finance customers, it is a fact that almost 40% of Americans now fall into that subprime category.

Most dealerships are turning to subprime to avoid losing market share to competitors who have been working with secondary finance for years.

The most important thing is to know how to treat the customer once they are in the door:

• Make sure they understand what the limitations are to buying a car and what it is that they qualify for.
• Show features and benefits of the automobile that they are interested in.
• If the customer doesn’t qualify, still counsel them on why the bank denied/declined their credit. Help guide them on what they can do to improve their credit.
• After the sale or even denial, follow up with the customer.

Follow-up or special attention to a customer who is unqualified or may even have been declined may seem like a waste of time.  However, this is actually an opportunity to differentiate yourself from all the other dealerships they have experienced.

All customers remember good experiences, and they will remember how helpful you were when their financial situation changes. If you are courteous and helpful the customer will even refer their friends and family to you for their automotive and financing needs.

Some dealers understand the need for a secondary department but are still in the process of developing a portfolio of subprime lenders or obtaining the right type of inventory.

Mike Sadowski is an auto finance marketing consultant for Carloan.com. He spent 14 years in the car business in Richmond, Virginia and has been helping dealers manage their Carloan.com marketing programs since 2003. You can reach Mike at 804-521-8577 or mikeATcarloan.com.

The question that dealers consistently ask me is “what are the keys to success on your special finance leads program,” or “how do dealers close 15% or higher of your auto finance leads when we struggle to close 5%?”  Obviously access to lenders and inventory are key, but let’s assume that we are talking about a dealership that is committed to subprime with the knowledge and resources to get credit challenged customers approved.

Possibly the easiest way to identify the keys to success is to first identify the recipe for failure. 

Typically failing dealers have a few things in common: 1.) They do not contact the leads in a timely fashion 2.) They prequalify the customers before they contact them. 3.)  When they do contact the customer, they try to sell the car not the appointment.

For now, I would like to focus on the last of these issues.

The first thing that we have to realize is that it doesn’t matter what a customer’s credit score, income, or cash down situation is if we cannot get that customer into the dealership.  One common mistake that experienced sales or finance people make is to get into too much detail over the phone.  Talking about cash down or specific inventory will do nothing more than discourage a customer from coming in to the dealership.

Once a customer is face-to-face, it is much easier to control the situation and direct the individual towards a car that not only fits their needs but is a finance-able option.  When the customer is able to feel, touch and experience the car, they are much more likely to find extra money down or convince someone to cosign for them.

Some dealers attempt to get a customer approved before they set an appointment and bring them in.  The major issue with that is when you tell a customer they are approved,  you take someone who thought no one could help them and turn them into a shopper that will go to any dealer across town.  The key is to sell the appointment and take the customer out of the market.  Invite the customer down and let them know that you have access to a wide variety of used cars as well as a variety of lenders who are experienced in working with less than perfect credit.

Create a sense of urgency by letting them know you need to verify their information in order to secure financing and set an appointment within 48 hours.  Going into any further detail with the customer will only limit opportunities and result in fewer car sales.  So remember SELL THE APPOINTMENT NOT THE CAR!!

Brian Matthews is an account executive for Carloan.com. He has been helping dealers with their sales and marketing processes since 2007. You can reach Brian at 804-521-8569 or bmatthewsATcarloan.com.

The question that dealers consistently ask me is “what are the keys to success on your special finance leads program,” or “how do dealers close 15% or higher of your auto finance leads when we struggle to close 5%?”  Obviously access to lenders and inventory are key, but let’s assume that we are talking about a dealership that is committed to subprime with the knowledge and resources to get credit challenged customers approved.

Possibly the easiest way to identify the keys to success is to first identify the recipe for failure. 

Typically failing dealers have a few things in common: 1.) They do not contact the leads in a timely fashion 2.) They prequalify the customers before they contact them. 3.)  When they do contact the customer, they try to sell the car not the appointment.

For now, I would like to focus on the last of these issues.

The first thing that we have to realize is that it doesn’t matter what a customer’s credit score, income, or cash down situation is if we cannot get that customer into the dealership.  One common mistake that experienced sales or finance people make is to get into too much detail over the phone.  Talking about cash down or specific inventory will do nothing more than discourage a customer from coming in to the dealership.

Once a customer is face-to-face, it is much easier to control the situation and direct the individual towards a car that not only fits their needs but is a finance-able option.  When the customer is able to feel, touch and experience the car, they are much more likely to find extra money down or convince someone to cosign for them.

Some dealers attempt to get a customer approved before they set an appointment and bring them in.  The major issue with that is when you tell a customer they are approved,  you take someone who thought no one could help them and turn them into a shopper that will go to any dealer across town.  The key is to sell the appointment and take the customer out of the market.  Invite the customer down and let them know that you have access to a wide variety of used cars as well as a variety of lenders who are experienced in working with less than perfect credit.

Create a sense of urgency by letting them know you need to verify their information in order to secure financing and set an appointment within 48 hours.  Going into any further detail with the customer will only limit opportunities and result in fewer car sales.  So remember SELL THE APPOINTMENT NOT THE CAR!!

Brian Matthews is an account executive for Carloan.com. He has been helping dealers with their sales and marketing processes since 2007. You can reach Brian at 804-521-8569 or bmatthewsATcarloan.com.

I spent part of last week at the annual F&I Magazine Conference and Expo, and had a conversation that has been stuck in my head ever since I got back. I was speaking with a finance manager I’ve known for years, who told me how much he misses our auto finance leads and wishes that he could sign us up at his store.

The surprising thing is that when I asked why he couldn’t, his answer had nothing to do with budget or lead availability. He said that he couldn’t sign us up because he’s at a Toyota store, and there’s just no way that special finance can work in a store that isn’t domestic.

I know that opinion isn’t uncommon, but I’m here to tell you folks it’s just plain wrong. Special finance is thriving in stores across the country, from Cadillac dealers to Ford, and from Lexus to Kia, and everything in between. We do business with a good number of high line dealerships, and they all say that they love the idea of third-party leads, because it allows them to tap into a hugely profitable revenue opportunity without having to advertise their brand.

An Infiniti dealership in California did 30+ special finance deals last month, and their only means of driving that traffic into the store is third-party leads. The owner likes to laugh and say that even the stores next to him don’t know how he didn’t take the beating they did during the downturn, or who is buying all the Sentras and Hyundais he keeps out back.

As previously written, success in subprime demands a commitment from the top of the organization down, but your franchise affiliation has nothing to do with whether you can make a go of it or not. If it’s not your thing, no problem, but if you’ve had success working with challenged credit in the past and are steering clear because you don’t think you’re in the right kind of store, think again.

The money is out there for the taking, it’s just a matter of who’s going to get it.

I spent part of last week at the annual F&I Magazine Conference and Expo, and had a conversation that has been stuck in my head ever since I got back. I was speaking with a finance manager I’ve known for years, who told me how much he misses our auto finance leads and wishes that he could sign us up at his store.

The surprising thing is that when I asked why he couldn’t, his answer had nothing to do with budget or lead availability. He said that he couldn’t sign us up because he’s at a Toyota store, and there’s just no way that special finance can work in a store that isn’t domestic.

I know that opinion isn’t uncommon, but I’m here to tell you folks it’s just plain wrong. Special finance is thriving in stores across the country, from Cadillac dealers to Ford, and from Lexus to Kia, and everything in between. We do business with a good number of high line dealerships, and they all say that they love the idea of third-party leads, because it allows them to tap into a hugely profitable revenue opportunity without having to advertise their brand.

An Infiniti dealership in California did 30+ special finance deals last month, and their only means of driving that traffic into the store is third-party leads. The owner likes to laugh and say that even the stores next to him don’t know how he didn’t take the beating they did during the downturn, or who is buying all the Sentras and Hyundais he keeps out back.

As previously written, success in subprime demands a commitment from the top of the organization down, but your franchise affiliation has nothing to do with whether you can make a go of it or not. If it’s not your thing, no problem, but if you’ve had success working with challenged credit in the past and are steering clear because you don’t think you’re in the right kind of store, think again.

The money is out there for the taking, it’s just a matter of who’s going to get it.