Perk 3 sends a flood of customers straight into the showroom.
There are many perks to having a special finance department and even more when running a successful one. With the right network of lenders, advertising programs and inventory, a special finance department has the potential to produce upwards of 35 additional units a month – when done right.
Perk 1: Moving Aged Inventory
Special finance customer’s best option when financing a vehicle is purchasing a pre-owned vehicle. There is benefit to moving late model inventory. These vehicles generally offer a lower price tag, lower interest rates, and lower insurance premiums for the consumer. Dealerships should know that whatever your current used-car inventory is on your lot, you can find multiple lenders with a variety of programs that will fit within your business model. In fact, there is a lender that will fit every car on the market.
Perk 2: Higher Gross
Special finance is a niche market, however think of all the missed revenue by not having a special finance department. The right lenders will help your dealership increase your gross. There is loan servicing and origination software available to cut the time a finance manager spends locating the right banks by pairing the customer with the right lender. The right match between lender and customer allows your dealership a better opportunity to earn higher gross on that deal.
Perk 3: New Revenue Stream
A customer that is currently in an open or closed bankruptcy may take more steps to close the sale but the reward of selling a customer who had no hope of getting a new vehicle makes the work worth it. Chapter 7 & 13 bankruptcies are eligible for auto loans. Bankruptcy is just a hiccup in the road to the sale. In 2016, approximately 787,000 American’s filed, mostly in part due to medical expenses. No matter the reason, consumers still need reliable transportation.
Interested in flooding your showroom?
Targeting this new revenue stream of credit challenged customers is easy with Caliber BK. Caliber’s bankruptcy program gives you the freshest data (you choose Chapter and Stage), no long term contract, and several plans for every dealership structure and staff size.
Check out our Black Friday Sale – one month of free bankruptcies!