Used Car Dealer Magazine

FEB 2018

Used Car Dealer Magazine, the official monthly trade magazine of NIADA, offers readers the most current news and info on such topics as industry trends,technology,financing,marketing and dealership operations designed to increase profitability.

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Page 69 of 78

10 BHPH DEALER → FEBRUARY 2018 THE ROLE OF A FINANCE SPECIALIST C onsider the concept that "sales" is an oxymoron in BHPH financing. A BHPH financing customer does not need to be "sold" anything. Generally he or she has poor or no credit and has probably been turned down for traditional financing. This customer needs to finance a vehicle. Enter the need for a "finance specialist" for your BHPH business rather than a "sales" rep. The role of a finance specialist is to help a customer get approved for financing on a vehicle in your inventory. An effective finance specialist will guide the customer through a structured process of gathering information. The finance specialist will determine what type of vehicle the customer needs and match the customer to a payment he or she can afford. The approach of a sales rep is typically very different. A sales rep will let the customer gravitate to the nicest, newest, most expensive car on the lot, then grind out a "deal" for the customer. The result is usually a payment much higher than the customer can really afford. For a sales rep, the goal is to get the deal, not to get to a payment the customer can afford. The NIADA Buy Here-Pay Here training workshop teaches a structured approach to customer financing. The objective is to train your staff on the key drivers to success for deal structure, underwriting and collections. An important component to that approach is learning how to separate what customers say they want from what they can afford. One of the biggest mistakes BHPH dealers make is putting customers in too much payment. The customer might agree to the terms and the payment amount up front, but BHPH customers are generally not good money managers and will agree to almost any payment amount. That shortsighted approach will likely result in missed payments, collection problems and, ultimately, repossession. The structured approach to BHPH financing puts the emphasis on selecting a vehicle and payment the customer can afford. This approach requires pre- selected word tracks and steps, along with control, discipline and a customer- focused attitude. Hiring the right person for the role of finance specialist means abandoning the belief you need an experienced sales rep. Hiring a person with good communication skills and the right attitude who is a team player, intelligent, reliable and trainable would be the primary requirements for that position. You can train the process, procedures and structure. A structured approach to financing customers starts with determining what SALES 'SALES' IS AN OXYMORON IN BHPH BY MARK DUBOIS

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