For more great content like this or to learn more about our Automotive Training Programs please visit: http://wyemanagement.com/
Hello, Chris Schulthies here for Wye Management. Would you like to see an increase of 25% or more in your retail vehicle sales? It's a rhetorical question, I know. Let me ask you this question, are you in the car business or are you in the transportation solution business? As a dealership, do you have an awkward reactive approach to credit challenged customers or a professional proactive approach? Credit challenged customers now represents 27% of the market. They live in every city and town and represent every trading area. Bankruptcies were up over 50% in almost every province over the past five years. Canadians are spending 162% of their disposable income up from 120% in 2007. These are consumers that have excellent credit ratings, but have high total debt service ratios, meaning they may not qualify for a prime loan. This has created a new niche of non-prime customers. Many people were laid off during the recession and their credit scores were affected as a result.
Are you marketing to 100% of your market or just 73%? Can you afford to market to only 73% of your market? Credit challenged customers are not the stereo-typical flakes. Since they represent one in four of your customers, they're people from all facets of society, blue collar and white collar professionals alike. Some are your family, friends, neighbors and colleagues. These people are most often good, hardworking people that have faced difficult circumstances and they're walking into your dealership. Are they embraced with a well-trained special finance sales process? Are they turned away to an eager competitor? Just a few short years ago there was a myriad of special finance lenders which made it relatively easy to get credit challenged customers approved. Today that has changed, and many of the dealerships who were spoiled by the supply of special finance lenders backed away from this lucrative business leaving a huge void. Less than 10% of franchise dealers proactively market to credit challenged individuals yet it accounts for up to 27% of the retail marketplace. Special finance is one of the fastest growing profit centers in dealerships today.
Let's put some numbers together for consideration. Two special finance deals per week equals $7,000 a week or $364,000 per year. 20 special finance deals per month equals $70,000 a month or $840,000 per year. Where can you fit in? Dealerships that have embraced and grown this important segment of their business-- one, proactively market to credit challenged customers with respect and dignified advertising, and online strategies. Two, know how to attract better qualified credit challenged individuals who then get approved. Three, understand credit and know what their lenders are looking for. Four, have a trained special finance sales process. Five, pull a credit report for their customers each and every time. Successful dealerships that embrace this important market are generating $25,000 to $45,000 additional gross profit per month, which can mean a profit infusion to over $500,000 annually. They do this by creating a separate marketing execution that does not conflict with the dealership brand or image. Today's dealerships who cater to credit challenged customers are providing a highly needed service and solution for their customers. Research indicates that any market that can support a franchise can generate 15 non-prime vehicle sales per month for that dealership. What does this tell us? Special finance customers are here now. Special finance market continues to grow, and either you're in the game or you're just on the sidelines watching it.
How can you tap into this market segment? It's easy. Register and attend Wye Management's workshop, How to Profit From Special Financing. This one day program was developed through strategic partnerships with chartered banks and special finance lenders, and shares the secrets and strategies of the country's top performing special finance dealerships. Wye Management was also the first training organization to train this important business segment on behalf of one the country's largest automotive manufacturers. Whether you're looking just to stay ahead of the curve, or you recognize it's time to tap into this opportunity, here's what you can do right now. Pick up the telephone and call us, or email us, register for our next workshop or have a Wye Management trainer come right to your dealership.
I'm Chris Schulthies. For more great content like this or to learn more about our Automotive Training Programs please visit: http://wyemanagement.com/ or call 1.888.993.6468 and discover how an automotive training solution could work for your dealership
