Q: Recently, you moderated a class at the 2008 Special

Finance Convention in Dallas. What did you learn from

other attendees during the convention?

This was a unique year for special finance at the convention to say the least. The dealers for whom I moderated were all eager to participate in discussions and learn whatever tidbit of information they could take home and parlay into profits. They meant business.

Most dealers reported that their profitability was down compared to previous years, but the interesting point was that their sales traffic was not. Instead, they said that converting leads into sales was the number-one problem.

Customer credit scores have dropped significantly, their down payments have become more difficult to come by as disposable income has decreased, and the finance companies have all tightened their belts. These combined forces have made it very challenging to put a deal together. As a result, dealer frustration was high, and for the first time that I can remember, they were struggling to find solutions.

There was much talk regarding “The Perfect Storm” on Wall Street and the effect of the subprime mortgage debacle on automotive finance. However, once we directed the discussion to talking about solutions instead of problems, most dealers concluded that these are times where mastering the fundamentals of sales and finance are the only real solutions to the challenges we face today.

Tom Herald
Benjamin Herald Associates
 
Vol. 2, Issue 5