Automotive Special Finance
"Are You Blind?"
By:Tim Shea
What portion of the Market are you missing….
As we speak to many dealers, read the local newspapers and glance at the TV at home or on the road as we travel to various dealerships, we see many types of Ad strategies trying to solicit the SubPrime customer. I am certain you have asked yourself the question….
“IS THIS WORKING?”
There are many factors to Advertising, first you have to determine what type of customer you are looking for, and then what will be “The Irresistible Offer” (the book by this same title written by Mark Joyner is outstanding).
Let's look at Subprime Marketing in particular. The Subprime customer should be kept in a credit decision and off your lot as long as possible. This strategy allows you to control the customer, get a payment call secured and then “land the car on the customer”.
However, most of the advertising that is done on a weekly basis by dealerships across the country runs contrary because the ads are “image” based (promoting the local store) , or the call to action is “come to the store and get a free “ginsu knife”. In either case the dealership is asking the subprime customer to make a PRODUCT/BRAND decision before the credit discussion can be had. The result is the customer that responds is responding to :
- The Freebie
- The Brand (Ford, Chevy etc)
- Credit Concerns
Consider this; many dealerships are concerned with their “Image”, especially as it pertains to their many years of serving the community, their repeat customers, the Lions Club or Rotary etc. Brand image is t he perception of your dealership by the consumer. While I believe you want to enjoy the profit generated by sub prime sales, protecting your reputation or image is critical.
Why would a dealer want to be “branded” as a Sub-Prime store?
This is not to say that there are not many successful subprime superstores, especially in larger cities, but I am addressing the majority of dealerships in our country.
Like me, you are probably aware of dealerships that have failed to protect their brand image and as a result have become know as a “sub prime” dealership. In the early 90's, a dealership in my area grew their sub prime sales to more than 100 special finance units per month. Though they became a sub prime “success”, it was at the expense of their retail or prime sales which still suffer today. It has been a long road turning their brand image around.
If a dealership becomes too strongly identified with sub prime, consumers reach a point where they begin to question whether they want that dealership's nameplate on the back of their vehicle. They question whether they want their neighbors guessing whether they are one of that dealership's “good credit” or “bad credit” customers.
Advertise and promote your dealership's name enough to let people know you do help people with credit circumstances but let the majority of your sub prime advertising be “Blind”.
Blind advertising keeps your dealership's name anonymous which protects your reputation and brand image. Additionally, you will engage your prospects only in a credit (vs. product) decision and expand your market share across franchise lines. You must consider what percentage of the market does my brand command nationally and especially in the market you are in. It should also be noted that your customer is not thinking about the 100 used cars you carry only the name on the front sign.
It is also important to place yourself in the subprime customer's shoes and consider the shame that a subprime customer carries with them into a car purchase. They have been told no many times and don't enjoy the process of being put in a fishbowl at a dealership and waiting for what seems an eternity to find out they can't get the car they need or want.
By utilizing 800 numbers and driving the “Blind traffic” to a live operator call center you will be able to:
- Give your customer a more pleasurable experience
- Get a Better interview for your SubPrime Department
- Control the customer and keep them in a credit decision
- Earn more gross profit
It has been our experience that if you attempt to keep the majority of your pro-active subprime advertising (Targeted Direct Mail, Newspaper, Print Ads, Billboards, Radio & TV), blind, you will enjoy greater benefits and sell more cars.
Tim Shea - AutoLending Network If you would like to see where you stand with your special finance effort or process please email bob.blackburn@autolendingnetwork.net and we will send you the Two Minute Subprime Audit.
Bob Blackburn VP of Sales AutoLending Network
800 430 5484
704 942 5022 cell
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