Industry Overview/Competitive Edge
The automotive industry has limited resources available to auto dealers regarding advanced subprime/special finance training. Nationally, vehicle sales are represented by new (25%) and used (55%) subprime retail customers. With only less than (10%) of the dealerships effective in converting their respective subprime credit customers into sales and profits, this creates a huge opportunity in subprime market-share for effective dealerships in subprime, respectively. Here are some common problems;
1) The level of credit knowledge or understanding by dealership management beyond a score or a few trade-line amounts is poor at best. The inability to correctly read credit causes dealers to lose deals and profits daily. These potential sales are lost at time of sale or because the dealer allowed the customer to leave until financing was finalized. Once the customer left, the dealer typically is unable to get that customer to return for delivery.
2) Once a dealer informs a subprime credit customer that they will need to put more money down or switch to a different vehicle because of financing terms, they typically lose the opportunity to convert this customer into a sale. This is due in part to a lack of understanding on how to properly communicate the financing options while gaining customer respect, understanding and rapport.
3) Lender fees, advances, inventory and sales processes commonly cause roadblocks to a subprime/special finance sale. Specific processes along with a diverse group of lending programs and inventory must be created and maintain for any dealer to excel at subprime/special finance business.
Here are some of the (ACTS) advantages offered to create a Competitive Edge;
Subprime Management Training
This is an advanced, in-depth training session covering credit bureau information and reading credit as a lender scorecard would, identifying a customer’s credit profile, correct structure and available lender groups. Education of the lenders and their respective lending guidelines will produce maximum profits on every deal. A unique and extremely successful interview technique is taught to our attendees increasing customer understanding, rapport and control regarding vehicle selection. This is done through a true credit counseling discussion enabled by dealership management due to our (ACTS) advanced credit training. An exclusive (ACTS) Profile & Lender Guide under U.S. Copyright is provided to all (ACTS) attendees. This guide will identify the proper deal structure (advance, rate & term) while providing the correct lender programs to maximize each subprime/special finance opportunity.
Intelligent Marketing Campaigns
(ACTS) has aligned itself with a group of subprime/special finance advertising companies who provide intelligent marketing campaigns. These types of campaigns are designed around each dealership’s respective customer base or demographic. Specific lending criteria filters produce the optimal customer base that corresponds to each dealer’s available lender programs. An example of what typically happens is a dealer attending a (20) group meeting will hear of an advertising company and campaign that had great sales results for another dealer in a different state. Without knowing all the specifics of that dealer’s customer base (income, credit, etc…) or lender programs, how can another dealer expect the same results? Intelligent marketing campaigns eliminate these types of poor results. (ACTS) only suggests companies who are extremely well versed on specific subprime/special finance advertising and who use some intelligence criteria filters (BK, credit score, trade-line specifics, etc…).
Lender Consultation and Evaluation
(ACTS) has an extremely well respected reputation with industry lenders both on a national, regional or even state level. The consultation is designed to create a diverse group of lender programs that produces more financing options to our client’s dealerships. We typically see a lift in finance (PVR) partially due to the addition of new and unique lender programs. A better understanding of all programs is discussed during the management sessions to immediately increase volume and gross.
(ACTS) Sales A.I.D.
This is a session design to accelerate the sales process for your subprime/special finance customers. Too many opportunities are lost because of the time to secure financing. The (ACTS) Sales A.I.D. will produce a structure to secure financing within (1) hour while your customer is on the property.