Learn the Lenders, Inventory, Marketing and Sales Process Your Store Needs To Maximize its Profit Potential with this Huge And Growing Market!

1. Become Great At Subprime It’s Over 40% of the Market!
Learn the Lenders, Inventory, Marketing
and Sales Process Your Store Needs To
Maximize its Profit Potential with this
Huge And Growing Market!
John Palmer, President & CEO
ProMax Unlimited & ProCredit Express
Pages: 56

2. Special Finance is 42% of the market!
FICO Credit Scores
% of population
Credit Score
2%
300-499
10%
500-549
8%
550-599
22%
600-649
10%
650-699
18%
700-749
17%
750-799
13%
800-850
Source: National Credit Reporting Agency

3. Lending was up dramatically across the
board for 2012
27 billion increase
Over 41 percent of
Americans are in need of
subprime financing
options, and according to
A. T. Kearney’s 15th
Annual Automotive Study,
the economic downturn of
2008-2009 resulted in an
additional 15 million
Americans being
classified as subprime.

7. “A huge
consideration in the
sales and marketing
strategy for retail
automobile
dealerships should
be the resurgence
of subprime.”
Jim Ziegler
F&I Showroom
Sept. 2013

8. You already have more subprime customers
coming in your store than you think.
Start keeping track of how many and how well you are doing
with them.

9. How do you turn Special Finance
Prospects into Customers?

10. To be successful in Special Finance a
dealership needs:
• The right mix of lenders
• The correct inventory
• Marketing tools to generate leads without
detracting from stores image
• A blended sales process that maximizes every
opportunity

11. First - Select the right mix of Lenders

12. Lenders for the lower tier customer
Exeter Finance Corp
http://www.exeterfinance.com/CustomersContactUs.aspx
Westlake Financial http://www.westlakefinancial.com/Pages/LoanCustomersFAQ.aspx
Drive Financial http://www.santanderconsumerusa.com/about/contact_us.aspx
CAC http://www.creditacceptance.com/content2.aspx?page=2&subpage=3
Regional Credit Corp
http://www.regionalacceptance.com/default.cfm?fuseaction=home&CFID=3114650&CFT
OKEN=71963133
Flagship Credit Corp http://www.flagshipcreditcorp.com/contact_us.html
Globe Acceptance Corp
http://www.creditreportproblems.com/Global_Acceptance_Credit_Company.htm
United Auto Credit Corp http://www.upfc.com/makePayment.asp
Honor Finance http://www.honorfinance.com/

13. Lenders specializing in bankruptcy
Tidewater Motor Credithttp://www.tidewatercredit.com/
Prestige Finance http://www.gopfs.com/
Friendly Finance http://www.friendlyfinance.ca/
CPS http://www.consumerportfolio.com/

14. Full sub-prime spectrum lenders
AmeriCredit GM Financial http://www.americredit.com/contact_us_global.asp
Capitol One http://www.capitalone.com/autoloans/
Chase custom finance
https://www.chase.com/index.jsp?pg_name=ccpmapp/shared/assets/page/phone2
Wachovia https://www.wachovia.com/contact
Fireside Bank http://www.firesidebank.com/Dealers.aspx
Citizens http://answers.yahoo.com/question/index?qid=20090307205154AAtnjcs
Santander Auto Finance
http://www.santanderconsumerusa.com/dealers/dealer_contact.aspx
Security Auto Loans http://www.securityal.com/sal/dealer/SALHome.php
Citi financial http://www.citifinancial.com/USCFA/CFA/portal/Home.do
First Financial Investors https://www.fifsg.com/Contact_Us.aspx

15. Next - Make sure you
have the correct
inventory.
What works best for the prime
side of your business may be
just the opposite of what you
need to be successful in
Special Finance.
50% of the gross on Special
Finance deals is based on the
“Spread” the other 50% on
how you work the deal.

16. First analyze your current inventory for
Special Finance opportunities
(This actual dealer needs some good SF vehicles!)

17. If your current inventory analysis
shows you need vehicles –
Go to the auction with a
list of vehicles to buy for
your Special Finance
customers

18. Here are some great Special Finance
vehicles for your Special Finance customer

19. While most dealers have inventory automatically posted
online, there is nothing that states or requires you to post
your entire inventory.
If you buy inventory specifically for your Special Finance
prospects, you can simply leave those vehicles off the
Internet, so that you don’t get locked into unworkable deals
structures.
Of course you can sell those vehicles to regular retail
customers, but most dealers will see little benefit in pricing
every Chevrolet Impala with prime credit pricing models.

20. Marketing and advertising tools to
generate leads without detracting from
your stores image.
•
•
•
•
•
•
Your dealership website
A special finance micro site
Trigger leads
Fresh BK leads both open and discharged
References and referrals
Prior unfinanceable showroom traffic

21. 1
Optimize Your Website to Get
More and Better Credit Leads

22. Suggested plug-in images!

24. Place the credit offer on your
Inventory Results and Vehicle Detail
pages to provide maximum exposure.

25. Advertise a separate website specifically for your
2
Subprime customer

26. 3
Trigger Leads
Do you want to know
who applied for an
auto loan YESTERDAY
within 30 miles of your
dealership with a credit
score between 500639?
How it works:
When a dealership, finance company, credit union or bank pulls a
TransUnion, Equifax, or Experian credit bureau on a consumer the bureau is
flagged with an auto inquiry. If the consumer falls within the radius and CB
score range you have selected then your dealership will be given the name,
address and phone number (usually about 30% have phone numbers after
scrubbed against the do-not-call list). The next day a letter will be mailed
with an offer of credit backed by a lender of permissible purpose. Average
response rates vary between 5% and 10 %.

27. 4
Fresh BK leads both open and discharged.
Bankruptcy levels still over 1 million filings in 2012 and
expected to rise in 2013
Judge Julia Gibbons, chair of the budget committee of the
Judicial Conference of the United States, which oversees the
federal court system, told a Congressional committee earlier
this year that court administrators expect bankruptcy filing to
increase by 8 percent or more in 2013.

28. 5
References & Referrals
People with Special Finance needs usually have
friends with Special Finance needs – Birds of a
feather, do indeed flock together.
Most people with really bad credit just assume a
new car dealer can’t help them and think BHPH is
the only answer – This is a totally wrong
assumption.

29. Send out a letter to every reference on your Special Finance
customer’s credit application letting them know they were a
reference and that you offer credit for any situation – perfectly legal.
“One dealer
I know sells
10 cars a
month this
way with
less than
$500
a month in
ad costs!”

On every outbound and inbound call that is Special Finance oriented
ask for 2 references at the end of the call – with training and skill,
salespeople will average one per call.

30. 6
Prior Unfinanceable Showroom Traffic
You’ve spent thousands and thousands of dollars
getting prospects into your showroom over the last
few months that you could not get financed.

31. Send out an email every 2-3 months
to your credit challenged prospects.

32. A blended sales process that
maximizes every opportunity
•
•
•
•
No separate SF department
Qualify prospect early
Work the deal backwards
Give customer a choice of 3-4
vehicles
• Close the selected vehicle with
alternate choice close

33. Qualify all showroom traffic easily
Two Types:
1.
2.
Appointments from SF marketing
efforts
Walk-in Traffic

34. Appointments - Take appointments directly to office
and fill out a complete credit application. Explain to
customer you and your manager will pick out 3
vehicles for them to choose from that will fit their
needs and help re-establish their credit.
Walk-in traffic – Much bigger than you think Analysis
CB scores pulled in the last month.

35. Qualify in one of two way:
1.Qualifying questions such as “Do you intend
to finance, lease or pay cash for your next
vehicle?”
“On a scale of 1-5 with 5 being great, how would you rate
your credit?”
“Who are you currently making payment to?”
“Who was your last car financed through?”
“Are you here to take advantage of 0% APR financing for
customers with preferred credit?”
2. Use a credit prescreen tool integrated into your
CRM for automated qualifying.

36. If customer fits Special Finance criteria take to
office to fill out complete application and see
manager to come back with a selection of 3
vehicles.
Never let
a Special
Finance
customer pick
out their own
car!

37. Work the deal backwards
A manager needs to review the credit application and credit bureau to get
an idea of available lenders. He can then choose the top grossing
combinations of vehicles and lenders and select 3 vehicles which the
salesperson can show the prospect.
This can be done manually with an inventory list or with available software programs.

38. Give your customer a choice of
3 to 4 vehicles

39. Close the selected
vehicle with an
Alternate Choice
close.
Never give any
customer an option
of one choice –
but always 3
Here is an example of a
good alternate choice
worksheet.

40. Become Great At Subprime It’s Over 40% of the Market!
John Palmer, President & CEO
ProMax Unlimited & ProCredit Express
If you have any questions, comments or need help
with Special Finance?
You can contact me directly at: (800) 322-9034 ext. 103
Cell: 309-269-1247 or email: ceo@promaxunlimited.com
For more information visit our site at:
www.promaxunlimited.com