We Aren't Doing Any of That

The Subprime industry is now the majority in financing. There is no doubting the fallout from all of the Subprime mortgage business is deeply affected the Subprime Automotive world.

I have the lucky privilege of cold calling on dealerships to see about helping them sell far more cars to the Subprime market. I have discovered that there are a couple of types of dealerships. The initial is the dealerships that want to be identified as a Subprime superstar. They advertise for it and stock pretty much their entire inventory for it. Then there is the dealership that desires to do it but does not want to hurt their reputation. The third type is the most troublesome. They are the ones that say "We do not do any of that."

My question is, "What occurs when half of your given market is classified Subprime?" Does that mean that you turn away half of your consumers that walk in the door? Who would put any small business in a marketplace where they know that half their buyers are not going to becoming able to do small business with them?

Here is what I suggest to any dealership that thinks they are not in the Subprime business enterprise or they do not want to bother with it. 1st thing is to get a new pair of eyes. Superior yet, just open the present ones. Subprime customers are now the majority and they will need the most assist. It is time to look at your present home business model and evaluate where you are losing business. If 1 Subprime customer a day comes to the dealership and leaves without a auto, how considerably does that mean in real dollars? For the average dealership that is open six days a week, that is 306 customers at $three,000 a deal, which breaks down to $918,000 a year in lost gross profit.
Let me know if you could use an extra 'mil a year.

I know that Subprime can be much more function than the easy prime deals, but I am a firm believer in tough work. In particular when it pays a million bucks a year.

'Til next time.