Often I'm asked, "Why is special finance training so important? Our people know how to do finance; bad credit customers have been coming in for years. What's so special about this now?"
Special finance requires training now more than ever. Lenders are getting out of this arena weekly and new start up lenders are entering. Competition among dealers is at an all time high, plus special finance customers are better informed. Sub-prime finance departments lacking a trained staff typically experience numerous problems ranging from low delivery ratios to serious funding issues.
A properly trained staff will produce many benefits. Benefits such as quicker funding, additional gross profit, reduced aged inventory and high CSI.
The single most important factor in operating a successful sub-prime finance department is a well-trained staff. All staff members must be properly trained to produce the results that a successful dealership is striving for. Following are training concentration areas for staff members:
The Dealer Principal/General Manager
must make a commitment to:
· employ the correct staff.
· empower and hold the staff accountable.
· support training efforts.
· advertise the department.
· supply proper inventory.
The Special Finance Manager must make
a commitment to:
· conduct effective customer interviews (fact find, establish control, treat customers with dignity and respect).
· select reputable lenders.
· work with lenders to get loans approved.
· utilize the best finance source to obtain maximum gross on each deal.
· advise the used car manager of inventory requirements.
· complete the DOC sheet.
The Desk/Sales Manager must make a commitment to:
· know the lenders' programs.
· determine if the customer is in need of special financing.
· make the proper turnover to the Special Finance Manager.
The Used Car Manager must make a commitment to:
· communicate with the Special Finance Manager on inventory needs.
· stock the proper inventory for the Sub-prime Finance Department.
· keep the Special Finance Manager informed of aged inventory.
The Finance Manager must make a commitment to:
· know the lenders' programs.
· make an immediate turnover to the Special Finance Manager if the customer does not qualify for prime financing.
The Sales Staff must make a commitment to:
· conduct a pre-interview with the customer.
· determine the customer's needs, wants and ability to pay.
· assist in the collection of stips.
· conduct a proper delivery.
· demonstrate the vehicle properly.
The Office Staff must make a commitment to:
· package loans properly to ensure quick funding.
· track funding.
A well-trained staff will treat customers with respect, dignity and professionalism. Customers react very favorably when treated in this manner. This will result in a profitable transaction, a customer who becomes your customer for life and someone who will deliver a high number of referrals. The end result: a true seventh profit center.