Special Finance Guy

tag:blogger.com,1999:blog-66057639099307961342011-11-27T15:44:52.272-08:00Special Finance GuyHints, tips, and general nonsense about Special Finance from the Guru of Special Finance.Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.comBlogger241100tag:blogger.com,1999:blog-6605763909930796134.post-75729089872449483562008-01-31T10:57:00.000-08:002008-01-31T11:06:32.843-08:00TIME FOR A CHANGE!

Those of you who have been reading this blog have hopefully found it usefull, amusing, or maybe both. Thanks for your support,For the new year, I've taken a new approach to things. Someone recently asked me what I do for a living, and when I told him I consulted with auto dealers, he responded by saying, "Oh, you're one of those guys who go into a business and tell them everything that is wrong!"

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-67105092791348712982008-01-16T12:23:00.000-08:002008-01-16T12:24:49.385-08:00“Subprime” Voted 2007 Word of the Year by American Dialect Society

Jan 07, 2008 Chicago — In its 18th annual words of the year vote, the American Dialect Society voted “subprime” as the Word of the Year. As ADS defines it, subprime is an adjective used to describe a risky or less-than-ideal loan, mortgage or investment. Subprime was also winner of a brand-new 2007 category for real estate words, a category which reflects the preoccupation of the press and public

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-76970300392374363122008-01-16T07:50:00.000-08:002008-01-16T07:53:00.041-08:00Selling Value to Your Subprime Customers

I tend to think that the one thing that universally seems to motivate people are pictures of Washington, Lincoln, Hamilton, Jackson, Grant and Franklin. These are the guys that appear on our money. Value is what a customer looks for. Build value in what you can do for them. In Subprime, the value is more than just getting a vehicle. There is substantial value in a customer’s ability to rebuild

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-11054706002152577802008-01-15T11:30:00.000-08:002008-01-15T11:31:05.599-08:00Forbes Magazine lists the 10 Best and 10 Worst Selling Models for 2007

The Forbes lists are based on sales reported from January through October 2007 and are compared to sales from the same period in 2006.In the columns below the models are listed in the order found in the Forbes Magazine article. Next to each is the number of units reported sold for 10 months of 2007. The percentage up or down is the comparison of those reported sales with the same period in

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-14096116388112076802008-01-10T14:58:00.000-08:002008-01-10T15:02:40.601-08:00Researchers Explain Why Subprime Loans Default

by Jennifer Reed, Editor, Subprime Auto Finance News, January 10, 2008CAMBRIDGE, Mass. — A recent report from the National Bureau of Economic Research analyzed the trends of subprime auto defaults at a large U.S. financial institution The data taken into account during the analysis included applications and sales from June 2001 through December 2004. This information was combined with records of

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-22590487139688628172008-01-09T14:35:00.000-08:002008-01-09T14:37:45.773-08:00Do You Know Where Your Special Finance Leads Have Been?

by Jim Wagner. Have Your Special Finance Leads Been Around the Block?As you probably know, special finance leads have become big business. The other day I was talking to someone very involved in the automotive lead business who told me that there are over 1.5 million leads generated every month. That, he believes, is a conservative number. Four or five years ago there were only a handful of

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com1tag:blogger.com,1999:blog-6605763909930796134.post-47768345772798825622007-12-27T07:11:00.000-08:002007-12-27T07:12:42.235-08:00New FICO Score to be More Understanding

New FICO Score to be More UnderstandingDec 26, 2007 Consumers caught in the subprime mortgage crisis may find some relief with Fair Isaac’s new FICO 08. Aside from providing a more accurate risk assessment of consumer credit, the new formula also aims to reward customers for keep other credit accounts up to date. “The main thing we tried to do with the score was to make sure it was in tune with

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-77615093512798400172007-12-26T09:43:00.000-08:002007-12-26T09:44:12.872-08:00The Tax Man Cometh…Only He Might Be A Little Late This Year

Late changes to the alternative minimum tax (AMT) provision of the IRS Rules could leave refunds delayed or worse. The AMT was originally intended for the wealthy few when it was created nearly 40 years ago. But because Congress never indexed for inflation the amount of income exempt from AMT and because it disallows a lot of popular tax breaks, tens of millions of middle-class taxpayers could

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-45465021958270433802007-12-21T10:02:00.001-08:002007-12-21T10:02:49.948-08:00Appropriate Subprime Inventory

A far too common objection heard when discussing Special Finance is, “We just don’t have any Subprime inventory!” or “All our used cars are out of the book!” By far the most difficult part of special finance can be to get the “right vehicles”. The list seems to change daily.Obviously, any vehicle that can be obtained “behind book” is the right vehicle. Current year program cars, which can be

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-2849987502251793472007-12-10T14:41:00.001-08:002007-12-10T14:46:33.291-08:00Mailing Lists and Pre-approved Credit

In the days of direct marketing, businesses prepared a single mail piece, sent it to virtually everyone, then waited for consumers to buy. Today, most companies develop a description of their ideal customers and then tailor unique sales offers to fit those customers’ needs. This approach is called target marketing. The right mailing list helps a business reach only those consumers who are likely

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-60798650935996130262007-11-28T09:24:00.000-08:002007-11-28T09:27:30.931-08:00When You Think Your Leads Are Terrible, Remember This...

The quality of these leads hasn't changed. It's the circumstances these people face that is different.The subprime mortgage crisis effects subprime customers the most! Many of them are "victims" of these subprime mortgage loans and are unsure of what their mortgage payment will be when their rate goes up!These same people that were banking on the equity in their home continuing to rise and many

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-78405043096824157692007-10-30T11:30:00.000-07:002007-11-28T09:16:37.172-08:00Beware of Who Is Selling for YOU!

This showed up in my inbox this morning. Seems like I get something like this on a regular basis!State reaches settlement with Washington car dealer and ad agency over deceptive marketingDealer group was accused of using a series of deceptive tactics to lure customers(10/30/2007)The Washington Attorney General’s Office announced settlements with a car dealer and an out-of-state advertising firm

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-15056227983562602832007-10-30T09:27:00.000-07:002007-10-30T09:29:14.721-07:00PIN Reports Days-to-Turn for 2005 Used Models

By Jennifer Reed, SubPrime Auto Finance News EditorOctober 29, 2007WESTLAKE VILLAGE, Calif. — When looking at how quickly 2005 model-year vehicles are selling at stores, Power Information Network saw an interesting trend come to light."The fastest-turning used 2005 model-year vehicles bear one clear similarity with the fastest-turning new vehicles: Both groups are dominated by imports," officials

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-72396077013365639492007-10-25T09:11:00.000-07:002007-11-05T14:52:46.396-08:00Who’s reading your mail?

I’d like to introduce you to a member of my family. Her name is Chooch, and she’s 14 years old. She doesn’t work, does not have a driver’s license or a Social Security number, and as far as I know, has no credit file.Let me start out by explaining something. My home phone number is listed in Directory Assistance under Chooch’s name. If you haven’t figured it out by now, Chooch is my border collie

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-11861834418697634312007-10-09T12:56:00.000-07:002007-10-09T13:00:38.076-07:00Maximizing YOUR Results

The question is "Out of the last ten potential customers that came in for a car, how many left without one?" Conservatively, dealerships are losing at least one Special Finance deal a day or 25-30 deals a month. An analysis of the lost opportunities enables a dealership to correct the processes that are losing these customers. With re-training in proper Special Finance processes a dealer can

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-20203730814465114182007-10-09T12:43:00.000-07:002007-10-25T09:16:00.746-07:00TOP TEN REASONS YOUR LENDER SHOULD BUY THIS DEAL

TOP TEN REASONS YOUR LENDER SHOULD BUY THIS DEAL10. IF YOU COULD ONLY SEE THESE PEOPLE, YOU’D BUY THEM9. YOU’VE GOT TO HELP ME, IT’S THE OLDEST CAR ON MY LOT!8. LOOK AT IT THIS WAY, HE CAN’T FILE BANKRUPTCY FOR ANOTHER SEVEN YEARS.7. WHEN’S THE LAST TIME I ASKED YOU FOR A FAVOR?6. YOU SHOULD ONLY HOPE THIS GUY GOES BAD, YOU’LL MAKE MONEY ON THE REPO!5. NO, HE’S NOT A GYPSY – HE’S A ROOFER.4. YOU

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-41978014641885925512007-10-01T11:34:00.000-07:002007-10-01T11:35:57.322-07:00Good Special Finance Managers Are Marketing Specialists First

Published by Jim Wagner April 14th, 2007 in strategy.I’ve always believed that the most successful special finance managers are marketing specialists first. They look to find channels of business in every area possible. In addition to the traditional areas of marketing, like print and radio advertising and even internet leads, they’re constantly looking for new ways to drive more customers into

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-21037295688872807962007-09-06T13:43:00.001-07:002007-09-06T14:47:46.031-07:00Doing the Math

Following up on unsold leads is like money in the bank. Take your blinders off and see the future. If you only manage to get 20% of your leads to turn into appointments, how many future opportunities does that leave you? If you only close 20% of your appointments, how many prospects does that leave you to follow up? And don’t forget the references that your customer’s provide. How many personal

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-35392945135098568832007-09-06T13:41:00.000-07:002007-09-06T14:52:33.447-07:00Personally Speaking

The problem with some Special Finance Managers is that we tend to wear blinders. More often than not, we view a deal as “now or never”. The philosophy de jure is “If I don’t close them now, someone else will later.” We loose sight of the fact that every customer can’t be closed the first time around. We get caught up in the idea of an immediate sale, and never see future opportunities.Every lead

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-38979556370734616142007-09-06T13:37:00.001-07:002007-09-06T14:42:02.633-07:00The "Big Event" Story

So the guy says, “We got this big event coming up this month! I love it because they bring guys in and all I have to do is stand to the side and they do all the work!” Does that mean that for the other 26 days of the month he do nothing? This guy was excited because at the last event they did 22 units in 4 days. The way I understand the math on most of these things is that they bring a group of

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-65253354861069489762007-09-06T13:28:00.001-07:002007-09-06T13:31:44.513-07:00I Have All the Business I Can Handle!

Do you really think you have all the Subprime that you can handle. Does this mean you don’t want to sell anymore cars to the special finance market? Are you truly seeing all the customers you could ever want?At last check, the car business was designed to sell cars. Granted, there are a bunch of guys that stand out front filling the silver container with paper wrapped cotton. In almost every

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-90178277533519389992007-09-06T13:25:00.000-07:002007-09-06T13:27:09.377-07:00How Do You Approach Your Customers

Taking a proactive approach to the subprime sales process can make a big difference in your bottom line. By settling the credit issues up front, you help set the customer’s expectation to reality. Avoid the “no sale” or short deal you’re forced into taking. Have your sales people once again explain the concept your dealership embraces. Keep your customers in the “credit decision” mode. Emphasize

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-17143023348057463852007-09-06T13:22:00.000-07:002007-09-06T13:23:33.479-07:00Are You Too Busy to do Special Finance?

No matter how you look at it, to be truly successful in subprime, you need to have dedicated personnel responsible for it. Sales people who are handling primary customers as well will more than likely opt to deal with these “easier” customers, avoiding what they perceive as too much work for too little money. If you have your primary F&I managers dealing with subprime, you’re probably “stepping

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0tag:blogger.com,1999:blog-6605763909930796134.post-9443946848155186482007-09-06T13:20:00.000-07:002007-09-06T14:50:39.988-07:00These Leads Suck!

Depending on who you speak to regarding Special Finance, there are either too many leads or not enough quality leads to work. The difference here is one of perception. How you determine your lead quality will ultimately determine whether you have a subprime “deal or no deal”.If you see your leads as too many, you might want to consider how efficiently you are working your leads. Who do you have

Geoff Cohenhttp://www.blogger.com/profile/17215599253281418398noreply@blogger.com0