If you're just joining us, we're still working our way down the list of the Top 5 Best Practices for Following Up on leads at your dealership. So far we've covered #1, "Make Contact Quickly", and #2, "Sell the Appointment." Today we're taking a closer look at best practice #3, "Don't Pull Credit First."

We know you want to winnow your leads to find the best ones, especially if you've got a lot coming in from your OEM, your website, and any 3rd party lead providers you've signed up with.

We get that. But...

The problem comes when dealers pull credit in order to cherry-pick -- meaning that they don't even talk to some prospects who are ready to buy because those consumers don't fit a specific profile. Don't be tempted to take that shortcut. Get them in the door. 

If you conduct that financial interview in person, not only are they already on your lot and more likely to fall in love with a car, but you will discover cosigners and down payments that are not reflected on the credit application.  You will get a better picture of their work history and other important details that will factor in to your ability to get a deal done. 

Couple that with the fact that you're more likely to tick them off if you pull credit before you've talked to them, and it just makes sense to wait.  (We covered some of the legal and other implications involved in our April post, "Consumer Consent and You -- When Should You Pull Credit?", if you want to take examine that piece of it. )

How does your operation manage their consumer information? When does the credit pull happen in your process? Examine your process to determine whether it's working for you...and if it's not, make a change. 

Which is a great segue into our next topic, Best Practice #4, "Work Your Process."

If you're just joining us, we're still working our way down the list of the Top 5 Best Practices for Following Up on leads at your dealership. So far we've covered #1, "Make Contact Quickly", and #2, "Sell the Appointment." Today we're taking a closer look at best practice #3, "Don't Pull Credit First."

We know you want to winnow your leads to find the best ones, especially if you've got a lot coming in from your OEM, your website, and any 3rd party lead providers you've signed up with.

We get that. But...

The problem comes when dealers pull credit in order to cherry-pick -- meaning that they don't even talk to some prospects who are ready to buy because those consumers don't fit a specific profile. Don't be tempted to take that shortcut. Get them in the door. 

If you conduct that financial interview in person, not only are they already on your lot and more likely to fall in love with a car, but you will discover cosigners and down payments that are not reflected on the credit application.  You will get a better picture of their work history and other important details that will factor in to your ability to get a deal done. 

Couple that with the fact that you're more likely to tick them off if you pull credit before you've talked to them, and it just makes sense to wait.  (We covered some of the legal and other implications involved in our April post, "Consumer Consent and You -- When Should You Pull Credit?", if you want to take examine that piece of it. )

How does your operation manage their consumer information? When does the credit pull happen in your process? Examine your process to determine whether it's working for you...and if it's not, make a change. 

Which is a great segue into our next topic, Best Practice #4, "Work Your Process."

As thrilling as it has been to watch dealers migrate their store marketing to the web, there are still some places that you need to do your homework. Featuring a privacy policy on your website is one of them.

If you've been paying attention, you know that you need a privacy policy if you're collecting consumer information. The U.S. federal government requires that you describe what you're gathering and why, and how it will be used. Your website visitors also need to be able to find it easily, which means it needs to be linked on each page and featured prominently on any of your contact forms.

Want to see a sample? Check out the footer on this page, or any page on our website, for that matter. It's always there, always in the same place so that visitors can find it.

The one we have developed is for use with our network of websites that car buyers use to apply for financing. Since they're filling out a full application, including employment information and SSN, we have to be sure that we make clear what our intentions are for the information they're sharing...and that it's secure -- potential for a whole 'nother series of posts on that topic alone. We spent a lot of time with our legal team developing this policy, which includes clear language describing what we do, why we do it, and how.

So why is the privacy policy on your website important? It gives the consumer the opportunity to limit how we share information, or to opt out of the process altogether, all of which is important to ensure that we are in compliance with federal regulations governing the use of this data - similar to CAN SPAM on the email front. You're leaving yourself legally vulnerable if you don't have one.

It should be noted that we're just giving you a taste - if you don't already have a privacy policy on your website, you'll need to work directly with legal counsel well versed in these laws in order to develop your own. If you copy someone else's and run into legal trouble, you will have no recourse.

Looking for more on this topic?

Download our free eBook, "7 Best Practices for Protecting Consumer Privacy." In addition to this recommendation for a privacy policy, you'll find other tips for making sure that you are in compliance with the Red Flags Rule for preventing consumer identity theft, brought to you by the Federal Trade Commission. Some serious stuff.

We think you'll find it useful -- and it's just another way that we're working every day to give you the right information to help you SELL MORE CARS!®

Got Questions? Feel free to get in touch today.

As thrilling as it has been to watch dealers migrate their store marketing to the web, there are still some places that you need to do your homework. Featuring a privacy policy on your website is one of them.

If you've been paying attention, you know that you need a privacy policy if you're collecting consumer information. The U.S. federal government requires that you describe what you're gathering and why, and how it will be used. Your website visitors also need to be able to find it easily, which means it needs to be linked on each page and featured prominently on any of your contact forms.

Want to see a sample? Check out the footer on this page, or any page on our website, for that matter. It's always there, always in the same place so that visitors can find it.

The one we have developed is for use with our network of websites that car buyers use to apply for financing. Since they're filling out a full application, including employment information and SSN, we have to be sure that we make clear what our intentions are for the information they're sharing...and that it's secure -- potential for a whole 'nother series of posts on that topic alone. We spent a lot of time with our legal team developing this policy, which includes clear language describing what we do, why we do it, and how.

So why is the privacy policy on your website important? It gives the consumer the opportunity to limit how we share information, or to opt out of the process altogether, all of which is important to ensure that we are in compliance with federal regulations governing the use of this data - similar to CAN SPAM on the email front. You're leaving yourself legally vulnerable if you don't have one.

It should be noted that we're just giving you a taste - if you don't already have a privacy policy on your website, you'll need to work directly with legal counsel well versed in these laws in order to develop your own. If you copy someone else's and run into legal trouble, you will have no recourse.

Looking for more on this topic?

Download our free eBook, "7 Best Practices for Protecting Consumer Privacy." In addition to this recommendation for a privacy policy, you'll find other tips for making sure that you are in compliance with the Red Flags Rule for preventing consumer identity theft, brought to you by the Federal Trade Commission. Some serious stuff.

We think you'll find it useful -- and it's just another way that we're working every day to give you the right information to help you SELL MORE CARS!®

Got Questions? Feel free to get in touch today.

As we've walked through some of the elements of working with special finance, one thing we haven't taken a closer look at yet is process. This is a crucial piece of the puzzle because consistency is needed to make special finance work.

Here's what we recommend when working special finance leads so that you get the most out of your program:

• Follow up within 15 minutes of receiving a lead
• Sell the appointment
• Follow up the phone call with an email
• Confirm the appointment

The phone piece can make or break your ability to get those prospects in the door and put them in the right car.

When they join the Carloan.com Dealer Network, our dealer partners participate in a 14-day onboarding process that includes our Quickstart, a PDF that includes scripts for them to use when they're getting started. After working with special finance consumers for a couple of decades, we know what works.

If our new dealers haven't worked with special finance before, this coaching is invaluable - our account team, Nicole and Eve, walk them through best practices and even give them the words they can use when the connect with the consumer. We want them to start seeing success right away because we want them to sell cars.  (Remember, "Your Goal is Our Mission, SELL MORE CARS!®")

The good news is that you don't have to be a customer to get access to the Quickstart - hit us with a DM on Twitter using our handle @carloanco, and we'll send you a copy. Look forward to hearing from you.

As we've walked through some of the elements of working with special finance, one thing we haven't taken a closer look at yet is process. This is a crucial piece of the puzzle because consistency is needed to make special finance work.

Here's what we recommend when working special finance leads so that you get the most out of your program:

• Follow up within 15 minutes of receiving a lead
• Sell the appointment
• Follow up the phone call with an email
• Confirm the appointment

The phone piece can make or break your ability to get those prospects in the door and put them in the right car.

When they join the Carloan.com Dealer Network, our dealer partners participate in a 14-day onboarding process that includes our Quickstart, a PDF that includes scripts for them to use when they're getting started. After working with special finance consumers for a couple of decades, we know what works.

If our new dealers haven't worked with special finance before, this coaching is invaluable - our account team, Nicole and Eve, walk them through best practices and even give them the words they can use when the connect with the consumer. We want them to start seeing success right away because we want them to sell cars.  (Remember, "Your Goal is Our Mission, SELL MORE CARS!®")

The good news is that you don't have to be a customer to get access to the Quickstart - hit us with a DM on Twitter using our handle @carloanco, and we'll send you a copy. Look forward to hearing from you.

It's a given!

Every dealer should have a website or some type of online presence. If I am looking for a car, the first place I am going to look is online. I am going to research the car I want first, than see which dealer in my area has that car, and then check out their website to see their inventory.

Don’t have a website? Is the inventory at least listed somewhere? No? Well OK than, you just lost me as a prospect.

An online presence not only lets prospects know you exist and what you can offer, it also gives you credibility. A website isn't the only way to have presence either. You can also try:

• * Facebook
• * Car inventory site
• * Youtube

Everyone is online now. We shop online, we socialize online, we get our news online, and some of us even work online. Posting your inventory in the Sunday paper is so 90’s to me.  I, personally, only buy the Sunday paper for the coupons, the “funnies,” and the crosswords. And besides, ultimately it’s cheaper to post online and easier to track your ROI.

So do you have presence? If not, I’d love to hear why not!

It's a given!

Every dealer should have a website or some type of online presence. If I am looking for a car, the first place I am going to look is online. I am going to research the car I want first, than see which dealer in my area has that car, and then check out their website to see their inventory.

Don’t have a website? Is the inventory at least listed somewhere? No? Well OK than, you just lost me as a prospect.

An online presence not only lets prospects know you exist and what you can offer, it also gives you credibility. A website isn't the only way to have presence either. You can also try:

• * Facebook
• * Car inventory site
• * Youtube

Everyone is online now. We shop online, we socialize online, we get our news online, and some of us even work online. Posting your inventory in the Sunday paper is so 90’s to me.  I, personally, only buy the Sunday paper for the coupons, the “funnies,” and the crosswords. And besides, ultimately it’s cheaper to post online and easier to track your ROI.

So do you have presence? If not, I’d love to hear why not!

Every day, I talk to dealers who are either interested in or already using auto finance leads. They also  come to me with specific questions about how to handle special finance customers. 

Let's walk through a question I get a lot:

Dealer: I want to work with subprime clients, but I do not have the right inventory to do so. Any recommendations for finding inventory?  Where do I go?

My Response: The first thing you would have to do is find the cars that work well with secondary payment calls. When working with special finance situations, you are working the deal backwards instead of building a structured deal for a prime customer on a specific car.

I recommend getting low-mileage, late-model-year cars that book out well with banks doing subprime. The average price of the cars should be between $7,000 and $15,000, and their mileage should be under 80,000. This combination gives a better opportunity to get a longer approval term and a lower rate to maximize the payment call.

As for where to go and find these cars, I suggest you go to your regular dealer auctions such as Manheim.  Check out other dealers like CarMax, Honda, and Toyota that have auctions for used cars, trades and silent auctions. I would also suggest concentrating on local trades with decent mileage from previous customers, as well as the new customers just trying to upgrade their present vehicle.

Depending on your store, I would suggest having 20-30 cars set aside just for subprime and mark them with red stickers on the windshield. That way, when you have a customer that falls into the special finance category, you will know right away that they have a variety to choose from — and you have the cars that will book out and make you money.

Once you embrace subprime and have the ingredients to cater to it, the results are profitable and you won’t be leaving money on the table. Good Luck!

Mark Fernandez is an auto finance marketing consultant for Carloan.com. He has been working with special finance consumers since 1997 and brings that expertise to helping his dealer partners sell more cars. You can reach Mark at 804-521-8579 or via email at markATcarloan.com.

Every day, I talk to dealers who are either interested in or already using auto finance leads. They also  come to me with specific questions about how to handle special finance customers. 

Let's walk through a question I get a lot:

Dealer: I want to work with subprime clients, but I do not have the right inventory to do so. Any recommendations for finding inventory?  Where do I go?

My Response: The first thing you would have to do is find the cars that work well with secondary payment calls. When working with special finance situations, you are working the deal backwards instead of building a structured deal for a prime customer on a specific car.

I recommend getting low-mileage, late-model-year cars that book out well with banks doing subprime. The average price of the cars should be between $7,000 and $15,000, and their mileage should be under 80,000. This combination gives a better opportunity to get a longer approval term and a lower rate to maximize the payment call.

As for where to go and find these cars, I suggest you go to your regular dealer auctions such as Manheim.  Check out other dealers like CarMax, Honda, and Toyota that have auctions for used cars, trades and silent auctions. I would also suggest concentrating on local trades with decent mileage from previous customers, as well as the new customers just trying to upgrade their present vehicle.

Depending on your store, I would suggest having 20-30 cars set aside just for subprime and mark them with red stickers on the windshield. That way, when you have a customer that falls into the special finance category, you will know right away that they have a variety to choose from — and you have the cars that will book out and make you money.

Once you embrace subprime and have the ingredients to cater to it, the results are profitable and you won’t be leaving money on the table. Good Luck!

Mark Fernandez is an auto finance marketing consultant for Carloan.com. He has been working with special finance consumers since 1997 and brings that expertise to helping his dealer partners sell more cars. You can reach Mark at 804-521-8579 or via email at markATcarloan.com.