Although special financing in dealerships has continued to grow for the past decade, many dealers find themselves struggling to maintain this valuable profit center. With bankruptcies continually reaching new levels and the price of vehicles in the tens of thousands, proactive dealerships have a tremendous opportunity to grow market share, increase gross profit and build a loyal base of customers with a concentrated focus on their special finance department. Here are a few tips:

 

 

Outline all areas of the department for the next year, including inventory, advertising, lender relationships, as well as funding, staffing, and growth strategies. Commitment and accountability to your well thought out plan are keys to success and profitability.

 

 

Hire a special finance manager who is detail-oriented, honest, and great with people. He or she must be able to interview potential lenders to find the best three to four programs for your dealership, and conduct professional credit interviews with all your special finance customers. It is imperative for you to assemble proper funding packages that are paid quickly. Developing solid relationships with your lenders and customers sets the foundation for higher credit approvals, referrals from satisfied customers, and loan packages that are paid quickly.

 

 

Make sure your inventory has high book and term values that customers want, and then never stop asking for their business. Start by calling the references listed on each credit application to prospect for new customers. Although you will want to start slow, advertise to the type of customers who can obtain financing. Small, attractive space ads, direct mail, and electronic media work best.

 

To effectively and cost-efficiently get your message in front of the right type of buyers, you will want to purchase high-quality sales leads and mailing lists from a reputable source. Analyze and profile your current customers so you can locate new customers. Below are some ways to zero-in on your best sales prospects:

 

·         Select leads by type of dwelling. Renters may have limited disposable income and may be good candidates for special terms. Homeowners have gone through extensive financial and credit reviews, and probably stretched themselves pretty thin. They may also be excellent prospects for special financing.

 

·         Select leads by geography. Some communities have high percentages of residents who fall into the middle class. Other communities may have a large number of low-income or upper middle class households. You may want to choose your best prospects by zip code, city, state, or area code.

 

·         Select leads by demographics. It is possible to make broad assumptions of buying power based on age and lifestyle. Retirees, for example, may need special financing terms because of their fixed income. Recent college grads, on the other hand, may need help in building an exemplary credit rating.

 

·         Select leads by financial status. With consumer debt rising, so is the number of bankruptcy filers. Owning this particular segment of the market before your competition does can be a significant advantage!

 

Running a prosperous special finance department takes commitment and accountability to all the right stuff. However, in todays complex and competitive buying environment, special financing is the right ticket to increase sales and revenue for your dealership.

 

To find out more about qualified sales leads and mailing lists from AutoListsUSA^TM, please contact John Schendt at 800-608-2875, or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .