Over the last five years, two areas of the automobile business have grown in leaps and bounds: the secondary finance business and computer technology. In the area of secondary financing we have seen an explosion of opportunities. Many dealerships that have become aggressive in sub-prime are realizing increases, from a low end of 20 to 30 additional cars per month to a high end of 60 to 80 cars per month. As for the area of computer technology, we now have software available to do everything from our basic dealership accounting to being able to post our entire inventory, with pictures, on the Internet. For those of you who have caught on to this tremendous computer environment, you are probably seeing some great results, both from a management basis as well as in increased dealership profits. In order to operate and be competitive with your secondary finance department, you should utilize the software that is available. Those who have not computerized the sub-prime finance department are operating in the dark ages, like back in the infancy days of F&I. Remember years ago, before there were any types of F&I calculators, we used to use those factor books to calculate monthly payments? If the customer wanted a payment on $8,850 for 60 months at 8% we would first look up $8,000 for 60 months at 8%, then look up $800 for 60 months at 8% and finally $50 for 60 months at 8%. We would then add up all the amounts to determine the customeršs monthly payments. In the secondary finance business, there are so many variables that need to be calculated on every deal, such as: which lender the applicant qualifies with, which cars book out well and with which lenders, which cars offer the most amount of gross profit. By computerizing this department you will eliminate errors, create more time for your secondary finance manager to sell and, most importantly, increase your level of gross profit per unit. Let me give you an example. Mr. Customer calls your dealership and wants to apply for credit with your secondary finance manager. By taking this application right on the computer, the system can automatically, within seconds, inform your manager if this application qualifies with any of your lenders and if so, which ones. The computer can then automatically fax that application to only the qualified lenders. Once the application is approved, with just a few key strokes, the computer will automatically tell you which cars in your inventory qualify for this applicant and list those vehicles in any desired order - by gross profit, payment, inventory age, make, model, etc. Other important features include the ability to automatically insert the required down payment, maximum rate and term allowed by the lender, and even a system of checks and balances preventing the deal to be improperly structured, all of which will delay funding. Most systems today even provide the option ,with the click of one button, to inform the operator if any additional gross can be added to the deal. These systems are available in the form of a purchase, lease or rental, and training and technical support is usually available. With all the money you have invested in starting your secondary finance department, advertising for customers and inventorying the right cars, donšt skimp on that critical element of technology. If you are going to be in the secondary finance business, provide your team with all the tools they need to be successful.