How many times have you lost a sale because you or someone in your car dealership did not know how to work with a subprime customer? Maybe you failed to do your due diligence and landed a customer on a car for which he was not eligible? Or maybe your office manager has reached an agreement, inadvertently losing any profit due to high acquisition fees because they had no idea they were dealing with a subprime client first place? These are scenarios that happen more often than anyone would like to admit. In some cases, sellers have even gone to the extreme of sending subprime customers just to avoid a confrontation with a less than delighted F & I manager. If you’ve ever seen such a thing at your dealership, it’s time to carefully review your subprime financing procedures
Did You Know…
788,364+ new vehicles were sold in Ontario in 2016
As Canada’s largest province, Ontario has a population of 13,600,000+
Toronto Auto Consulting has located and partnered with many dealerships in Ontario that offer vehicle loans for bad credit
Get matched with an Ontario based bad credit dealership here
The typical car buying process with a loan can take 6-12 days. We’ve decreased the time considerably with customers driving their new car within 48 hours.
We’ve dramatically decreased the time it takes to get approved with Bad Credit with our 2 Minute Application Form
With 26% of all Canadians having less than Good Credit means that
Canada’s largest province has around 3,536,000 people in this situation
Average subprime deal has over $5000 in gross profit
Getting Ready for Subprime Business
Now, wait a minute. Before embarking on your new revelation that subprime financing is the key to making dreadful profits, there are a few things you need to consider first. The fact is, most dealerships simply do not have the necessary processes to take advantage of this largely unserved percentage of car buyers. Even less know what to do to fly it. Things like …
Having the right inventory to serve a wide range of customers, budgets, and approvals.
Establishing solid bank relationships, and having access to a wide selection of banks that will offer reasonable terms.
Ensuring your F&I Manager knows subprime financing inside and out, including how to work with banks and how to put together a successful subprime deal. Provide adequate nonprime subprime F&I Training courses.
Having a well-defined F&I process in place that prevents buyers from using other people’s credit and saving you from lawsuits in the process.
Being able to defend yourself against Ontario Motor Vehicle Industry Council (OMVIC) claims that your dealership might of used manipulated or confused customers into buying a car or additional products. Falling victim to this could get you shut down.
Attending F&I Compliance training.
Recruiting the right person
The biggest problem
We have always been puzzled by dealers who buy leads, only to turn around and point the blame for poor lead supplier results. Working with nonprime and subprime leads never works as usual, and anyone who thinks otherwise is just fooling around. Your sales staff must be trained on how to qualify buyers before depositing them on a car for which they have not been approved. They need to learn and keep the work skills needed to reach the “other” 30 percent, many other dealers do not care about. With the right approach and the right training, this can be done. Toronto Auto Consulting offers clear solutions for training nonprime and subprime F & I clients. We can engage all of your staff through a streamlined process that ensures increased sales, retained earnings and with ethical approach. With more than a decade of experience with major auto retailers as an F & I Manager for some of Toronto’s leading automotive dealerships in Ontario, Toronto Auto Consulting can help you develop nonprime and subprime business strategies that will keep your business running smoothly dealer in the forefront. It does not have to be a chore of working with a nonprime client on subprime. Toronto Auto Consulting offers tailored services tailored to your specific needs – each dealership is unique Toronto Auto Consulting is not a typical consulting firm for everyone and that’s why our dealers love us!