I ran across an interesting article last week in Business Insider. It was about a survey released in December of last year concerning financial services done by the Federal Deposit Insurance Corporation (FDIC). The survey found that roughly 1 in every 12 US households, or some 17 million adult Americans, are “unbanked”. That means they lack a current checking or savings account. The survey also found that 1 in every 5
Collections are the most exciting activity at a Dealer Controlled Financing dealership. If your employees have properly worked the other processes at your dealership, then collections can be easy. The dealership can maintain a larger portfolio without increasing personnel expense. If your dealership is charging the highest interest rates allowed, extending contracts beyond the expected life of the vehicle, or treats customers like they are doing them a favor by
Determining who to make loans to is one of the critical factors in the success of a dealer controlled financing business. Making the wrong decisions can cause you considerable collection work and expense than making good lending decisions. Poor BHPH underwriting can increase your delinquency, stunt your cash flow and trigger excessive charge-offs. Good BHPH underwriting can help you avoid these mistakes, build your cash flow and minimize charge-offs. Effective
Do you want to improve your sales, increase collections and protect your dealership by enhancing compliance? Of course you do. The key to doing all of the above is being consistent. Sales Do you use a step-by-step sales process or do your sales people just kind of wing it with each customer? If you don’t have a step-by-step process, how do you know what is being said to your customers
…With the FTC and the CFPB? I’ve written before about the various regulations auto dealers are required to comply with, the wave of new regulations expected now that the CFPB is up and running at full strength and the growing threat of increased enforcement action on the horizon as these agencies flex their new muscles. Today I want to look at the 3 top reasons dealers are not prepared. 1. They
An article I wrote that appears in the November issue of Auto Dealer Monthly 2012 has been a pretty good year for BHPH dealers. Sales have been up for many dealers. Delinquencies have been below last year’s levels for most dealers. There are more sources of capital available almost every day and the future looks bright. Let’s take a look at 5 areas that give us a pretty good picture of
A great article that Ken Shilson, founder and President of the National Alliance of Buy Here Pay Here Dealers, wrote and has graciously allowed us to share with you here. New developments in the Buy Here, Pay Here (BHPH) industry are happening at an unprecedented pace, and new operators are entering the business in record numbers! Both new entrants and experienced operators are seeking exceptional profit opportunities in the low
We are pleased to post this article written by Leslie Fair from the Federal Trade Commission Business Center Blog By Lesley Fair November 16, 2012 – 11:32am Every business generates paper destined for the circular file. But if documents contain sensitive information, don’t toss them out in a way that could invite unauthorized access. According to the FTC’s lawsuit against PLS Financial Services, PLS Group, and The Payday Loan Store of Illinois,
The Truth in Lending Act, also known as TILA, is a federal law designed to protect consumers in credit transactions by requiring clear disclosure of key terms in the lending arrangement and all costs. This law is contained in Title I of the Consumer Credit Protection Act. The regulations implementing the statute are known as Regulation Z for purchase transactions and Regulation M for lease transactions. The exact requirements for enacting most of the specific
In the last two installments, we looked at how poorly most dealerships handle incoming sales calls and some tips at getting the information you need from each call. In this segment I want to talk about five things you should never do or say during that first call. 1. Fill out the application Completing the actual credit application is something that needs to be done in person. You can’t look a
