Each year, DealerStrong releases their Special Finance Benchmark Report. This report services as a great comparison tool to help dealers identify areas where they could be adding more profit to their bottom line through their Special Finance operations. These metrics are derived from over 300,000 dealership transactions and include both franchise and independent operations. Benchmarks
Dealers regularly reach out to me about how to restart their Special Finance efforts. They expect me to tell them what inventory to buy, or which finance companies to do business with. That’s an extreme oversimplification viewpoint. There are things I can share with a dealer but they begin with some foundational planning. Here are
Why do people decide to buy? Some consumers use an intense system of thorough investigation before they decide to purchase, while others are basic impulse shoppers. Either way, three factors affect all purchasing decisions: economic, functional, and psychological. Retailers should be familiar with the impact each factor has on the minds of consumers. Apple, Inc.
Having worked in the Special Finance industry, first incorporating it into my retail stores beginning in late 1989 and then doing special finance training and consulting since early 2002, I have watched countless dealers “get in” the business and then “check out.” Why Dealers Get Into Special Finance The “get in” catalyst is often another dealer
Do you really need to spend money on Special Finance Training? How hard can it be, right? With over 30,000 dealers nationwide offering indirect financing, you would think a major portion of those dealers would have a solid grip on subprime. However, the truth is, only about ten percent are really succeeding in special finance.