The Ten Critical Components for Success in Special

Finance

1) Commitment
• Starts with the dealer principal and includes entire sales team
• Must understand capital required
• Conventional F&I and used car manager/buyer are keys

2) Inventory
• 80 percent of payments under $400 mo
• 80 percent of inventory must be $7-$12K ACV, $500 behind average book
• Under 50,000 miles
• Sweet spot is $10K

3) Personnel
• SF Manager must have good deductive reasoning.
• SF Manager must be able to look at application, bureau and know where customer will qualify.
• Must work as a team to deliver vehicle

4) Finance Companies
• Like the seas—some times high, some times low
• Today’s hero can be tomorrow’s zero.
• Maintain strong relationships through thick and thin.
• 85 percent of business will generally go to 5-6 companies.
• Need enough to cover all niches

5) Telephone Skills
• Call all leads, regardless of perceived strength
• Use word tracks for both inbound and outbound leads
• Goal is to set an appointment that will be kept
• Develop rapport, don’t interrogate
• Don’t tell them they are approved
• Don’t build barriers in the customers’ mind

6) Sales Process
• It is still about selling financing.
• Must determine good credit/bad credit before vehicle is selected.
• Attempt to show vehicles that fit customer’s credit profile.
• Once on proper vehicle, resume normal road to sale.

7) Deal Structure
• Calculate maximum vehicle advance and add down payment to net max sales price.
• Maximize the front end gross, then the back end.
• More down payment equals more gross profit.

8) Marketing
• Advertising goal should equal 10 percent of front end gross profit.
• Goal is to create good leads, not to sell cars.
• One hundred leads create 10 sales on average.
• E-leads are still the lowest cost per sale.
• Measure your results to maximize your ROI.

9) Compliance
• No deal is worth the dealership!
• Privacy policy must be given whenever and however gaining personal, non-public info during a credit transaction.
• Check everyone against OFAC list.

10) Systems
• The glue that holds all other elements together
• Inventory management—You need to be able to select right vehicle quickly.
• Lead management—Track your leads!  SF leads are like planting seeds.
• Funding—Benchmark is seven days from delivery to funds in bank.