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.

The number one issue we see car dealers running into is consumer consent. It is far too easy to simply do a hard credit pull on a consumer's car loan application, regardless of whether the consumer is aware that you are doing a credit check. We do our best to notify the applicant that this is a possibility, but the bottom line is that you have an ethical responsibility to inform a customer when you impact their credit history by hitting it with an inquiry. Audit your business operations and enforce this practice with your staff.

Get consumer consent up front - ideally when they're already sitting down with you at your store - and protect yourself on two fronts: from their perspective, and on the credit bureau side. Remember, these credit inquiries are traceable back to your business -- we've seen consumers track down and sue dealerships who they felt used their information fraudulently. Make sure that your store's policies around handling credit checks are consumer-friendly.

From the credit bureau perspective, you're not only running up your bureau fees unnecessarily, you're also generating trigger leads. If you didn't already know, once you've pulled credit on a given consumer, the credit bureau then has the legal right to resell that information to subscribers who have signed up to purchase that information as it becomes available. And you've just potentially given your competitors the chance to contact the prospective customer before you even get a chance to start your process.

So what's the answer?

Set the appointment, get them in the door, and then pull credit. That way, you're going to know you're doing it, and they're already going to be fully engaged with your team.

Looking for more on this topic?

Download our free eBook, "7 Best Practices for Protecting Consumer Privacy." In addition to consumer consent, it covers recommendations for reviewing your current process and making sure you're doing everything you can to comply with the Red Flags Rule.

We think you'll find it useful -- and it's just another way 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.

If you work in a car dealership, you are privy to some of the most sensitive information about person's life. Where do they live? How much money do they make? How long have they been employed?

And the biggie: what is their social security number (SSN)?

Imagine yourself in their shoes. Wouldn't it concern you a little bit to have someone else know that much about you? 

There's an easy way to repay their trust: handle their personal information as if it were your own. It's as simple as that.

Whether it's on your computer screen or on a hard copy of a loan application, the principle is the same. Lock it down when you're not using it and destroy it when you're done. 

Looking for more on this topic?

Download our free eBook, "7 Best Practices for Protecting Consumer Privacy". It will help you review your current process and makes recommendations for ways you can improve your data handling -- all with an eye to avoiding a violation of the Red Flags Rule and a run-in with the FTC. 

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

Got questions? Feel free to drop us a line. 

Protecting an individual’s personal information in a business development center (BDC) is paramount.

When an individual applies for financing, they are expecting that their information will be held confidentially and that it is safe from identity theft threats. The two significant areas where the responsibility for sensitive material management falls in a BDC are in the office and over the phone. Any slack in either area will open up your BDC to so-called Red Flag violations of the legal requirements of the Federal Trade Commission.

BDCs, whether centrally located or in an offsite location, need to be safeguarded in order to protect the consumers that you are working with every day. With technology, especially as it advances, one quick shot of the screen, and someone can steal someone else’s identity.  Situations like this can be easily avoided.

Some simple rules to follow in an office are:

• Lock your computer screens whenever you walk away from your desk.
• Frequently change your passwords, especially when you have a change in staff.
• Don’t allow camera phones in the BDC and face computer screens away from windows or areas where someone can easily see the information on the screen.
• Do not print applications and have them sitting around your office. If you need to print them use the “Lock it up or shred it” rule.

The phone is another area that can make you vulnerable to exposing information about a consumer to the wrong person. On the phone, it is quite easy to do because the only physical verification that you have that you are talking to the right person is the answers that they give.

Some simple rules to follow on the phone are:

• Do not disclose any specifics on the phone.
• Verify with a “what is your…” statement versus a “is your……” statement where you disclose the information and have them verify that it is correct.
• Do not give details about the specifics of the reason you are calling with anyone except the applicant. (This is especially true when you are calling a work number.)
• Do not run an individual’s credit without talking to them and gaining their permission for yourself.

Understanding the entire BDC environment allows you to give the consumers that you work with the confidence in your ability to safeguard their identity. In return, this allows them to have confidence in your store and team, knowing that they are going to the right place that can help.

Remember — I am always here for any questions you may have about BDCs or best practices for working the phones. You can reach me via the comments field below, or check out my contact page here.

Guest post from our in-house BDC expert here at Carloan.com, Eve Paletta-Weaver. Check out her contact information in the link at the end if you'd like to get in touch.

Have you ever called a store trying to ask a question about a specific product or service and decided right from that call that you will NEVER work with that company no matter how good a deal they may give you?

When a consumer calls your store for the very first time, the person who answers the phone is the very first impression of your store. Lydia Ramsey, Business Etiquette Expert states “Seven seconds is the average length of time you have to do it, and everyone knows that you won’t have a second opportunity”.  It does not matter if they are at your location or in an outsourced BDC; it is all the same and needs to be taken seriously to win. It is important to understand the best way to make that initial connection.

To accomplish this, it is essential to answer the phone with a welcoming smile. Have you ever tried to sound like you are smiling with a frown on your face? This is not possible. Make sure that you take the initiative to thank them for calling and choosing your store. When you have a sincere happy approach to your intro it gives a customer that initial feeling of comfort.

Next build a common ground with the consumer so they feel like they are buying from a consultant rather than being sold by a sales person. Make sure that you use their name -- it makes them feel important. Don’t be overbearing and pushy. Let the consumer know how much you care and are there to help. By allowing the consumer to feel that connection from the start they are more likely to become a customer for life rather than a customer for a moment.

Answer the questions that you are asked without selling a car over the phone. So many times consumers have one vehicle in mind, and then when they come in to the store they leave with something completely different. Don’t allow yourself to narrow down the options over the phone by getting into specifics. Use active listening, answering the questions while allowing them to know that you do have a few that have similar options or price ranges it will help to keep this flexibility.

The goal of the initial phone call is to gather information from the consumer and set the appointment -- get them in the door. If they screen you out before they visit your store, you are effectively throwing away your marketing dollars. Once they are on the lot the vehicle specifics and your sales process come into play, you can be on your way to the sale.

Remember — I am always here for any questions you may have about BDCs or best practices for working the phones. You can reach me via the comments field below, or check out my contact page here.

We're full on in the throes of summer - haven't even hit the dog days yet, though the thermometer here in Richmond says otherwise - but it's time to start thinking about the fall.

They're already advertising back-to-school sales so why not?

One thing we're really excited about is the 2012 Subprime Conference coming up in September. Thanks to our sister company, Dominion Dealer Solutions, and the organizers at Auto Dealer Monthly, we're going to be on the show floor at the Paris Las Vegas in booth # 508 for the duration.

Really exciting stuff!

Special finance is something that's really near and dear to our hearts, and we're encouraged to see it making a comeback the way that it is.

They've recently posted the agenda, which you can find here.

We just know you'll want to circle those exhibit hours and come see us.

In the meantime, follow us on Twitter using our handle @carloanco to keep tabs on what's going on in special finance.

See you in Vegas!

We haven't seen the latest results for Q2 from Experian Automotive yet, but a couple of news outlets are still keeping our favorite topic - subprime auto finance or "special finance" - in the spotlight:

• In recent days, FICO announced the findings from their most recent quarterly survey of bank risk professionals. According to their results, they found that "more than 50 percent of respondents expected the auto sector to see the largest increase in 2012" when it came to borrowers with subprime credit. Big quote for us:

"We are clearly seeing a loosening of credit in the auto finance market, with lenders responding to increased consumer demand," said Dr. Andrew Jennings, chief analytics officer at FICO and head of FICO Labs. "This is good news for car dealers and it should help the auto sector continue its recovery."

• Automotive News used this press release as a jumping off point for their article "Subprime car loans are gaining...", coupled with the follow-up article "...but growth is disciplined, so far" to tie in to additional color provided by Wells Fargo.

• The best piece of recent news was provided by Auto Remarketing, which actually published the results of an informal poll by Melanie Zabritski director of automotive credit for Experian Automotive.  The best quote: “There is just a great sense of optimism for the marketplace of expected growth. I think we’ll see the growth both in volume as well as more of the subprime business coming on the books.”

And when you’re done there, don’t forget to check out our Volume Estimator to see how you can get your piece of the resurgent special finance market.

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.

We're focused on writing about "special finance" at the moment, and I'm pulling out the way-back machine to go back to a post from last summer that definitely applies to working with the special finance customer.

For your edification , I've dropped the post in below. Enjoy!

Educate Your Buyers to Improve Their Experience - And Win Their Trust

Saw an interesting article this week featuring data from  AutoBuying101.com's "Auto Buying Experience" survey, which describes car buyers' experiences with working with auto dealers.

There weren't really any earth-shattering insights on offer, but the data did corroborate some of the things that we "know" about car buyers and the auto sales process:

• Car buyers find the process to be "stressful," and only 28% of the respondents said dealers were trustworthy (yikes).

• 37% thought that the worst part of the process was price negotiation. However, 79% felt like they got a fair deal.

• According to the same survey, many don't plan their approach to the dealer: they don't set an appointment (44%), check their credit (44%) or get pre-approved (47%) before they show up on the lot.

On the other hand, 78% checked out at least one dealership website while they were considering what car they wanted to buy, before they went driving around.

That means that you have the opportunity to make it easier for your customers by doing what we do: educate them on what to expect. When people apply for a car loan at one of our consumer websites, we make a point of telling them what happens next and how to be prepared. There's no reason that you, the auto dealer, can't do the same.

It's simple: add pages that describe the best way to buy a car from you, including how the process works at your dealership and what they need to bring in order to close the deal. Increase your transparency to counteract that 28% trust rating. And follow through on what you say you're going to do.

When you make their experience great, you'll get a car sold and a customer advocate who will recommend you to all of their friends.

In the end, isn't that what's best for you, too?

It's always interesting to see what the latest numbers from Experian have to say about how the automotive finance market is doing, and Tuesday's presentation was no exception.

Here's a great quote from the recap on SubPrimeNews.com:

"During the first quarter of 2012, car shoppers definitely found more favorable conditions for their vehicle loans," said Melinda Zabritski, director of automotive credit for Experian. "A reduction in average credit scores, lower interest rates and a lengthening of loan terms are all very good signs for the market and offer great opportunities for consumers looking to make a deal on a new or used vehicle."

That just about sums it up.

Some other highlights:

• Year-over-year (YOY), the overall risk distribution of auto loans shows a 5.9% increase in Subprime, bringing the total percentage of open loans for the Nonprime, Subprime and Deep Subprime segments to 44.38%
  • In new vehicles, Q12012 Subprime was up 11.4% YOY vs. Q12011
  • In used, Q12012 Subprime was up 4.04% YOY compared to  Q12011
• Banks in particular are taking more subprime: up 21.22% YOY in Q12012 vs. Q12011
• Average credit scores in new and used financing continue to decrease
• Finance amounts for new and used increasing

[For access to the full presentation and recording, visit Experian Automotive's webinar page here.]

We're really excited for what this means for both the consumers who apply for loans through our network of websites and for our partners in the Carloan.com Dealer Network. They both look to be getting ready for a fantastic summer of car buying.

In the meantime -  if you want to see how special finance might fit in at your store - check out our Volume Estimator to see what we have available in your market or hit us up with your questions on Twitter using our handle @carloanco. Look forward to hearing from you!