These days it’s absolutely necessary for all dealers to set up their own in-house special finance departments. As more and more millennial’s answer the market we have an and ever-growing group of non-prime buyers.
These days it’s a necessity for all dealers to set up in-house special finance departments. As more and more millennial’s enter the market we have an ever-growing group of borrowers with non prime credit. It is no longer seen as a high-risk to lend to these borrowers. Therefore this is an area that has become profitable for many.
The only way to keep up with the competition is to learn how to cater to this group of buyers.
One of the best things you can do to start immediately, is to expand your network of lenders. As mentioned above this group of new and young buyers creating an ever-growing market. In order to cater to this market effectively, you should have the large network of lenders.
I’m sure you can see how this would help you effectively gain ground over your competition.
The majority of buyers in this market are ready to make a purchase now. If you don’t have a lender willing to provide financing for the buyer, then you lose a sale. But what’s worse than that is you quite possibly lose a customer for life.
In this business lifetime customers are made every day. These lifetime customers are the bread-and-butter of our industry. Without them you’re fighting an uphill battle.
The more long-term relationships you can make the more lucrative your business will be.
Having a large network of lenders can help you achieve that.
Another important point to note here is “inventory”
Just like you large network of lenders, you should have a large inventory. Doing so helps to avoid the same type of embarrassing situations mentioned above. Situations may arise that could throw a monkey wrench in almost any plan you can make. Being prepared to offer another vehicle from your inventory can save the deal.
Managing inventory properly is key in deals like this.
Knowing which part of your inventory to sell and when to sell it is an important factor. You need to have a special approach to these kinds of buyers. You cannot sell these buyers the same cars you’d sell buyers with good credit.
Perhaps one of the most important things you can do is hire people with experience in this space. You can work with them as well as learn from them. As you hire new staff have them work with your old finance staff. This is the only way to get a fully functioning special finance department prepared and equipped to handle buyer needs.
Make sure you talk with everyone on your staff.
Be sure they all understand how to properly qualify leads.
Make sure you go over all measures of qualifying with your old and new staff.
You never know who missed out on important part before from your old staff. And you can never be quite certain with your new staff until you ask.
If you can be sure that they all know how to properly qualify a lead, then you can save time, money and resources.
Also be sure they understand qualifying special buyer leads, is different from a lead with good credit. This is a great way to avoid losing sales unnecessarily.
Deceptive ads may be something the competition is doing and it may get traffic in the door, but it’s not worth it in the long run. Deceptive advertising only uses up your resources. It wastes time and energy and you won’t get the sale anyway.
If you can’t deliver on it then don’t advertise it.
Advertising that you can finance anyone, before you’ve grown your network of lenders, is deceptive.
Take the necessary steps to grow your special finance department and you will reap the rewards.
Do it the right way. Choose to be honest and thorough.