Let me ask you a simple but very important question about your dealership: Is your subprime department meeting its full potential? I think if you’re being honest, the answer is probably ‘no’. I would even go so far as to say that your subprime department isn’t even halfway to its full potential. And just so we’re clear, I’m not speaking figuratively; I believe that most dealerships could double their subprime sales with the right tools and the right practices.
The reason I say that is because the subprime market is both incredibly valuable and highly misunderstood, resulting in too many dealerships leaving a lot of money on the table. The good news is you don’t have to be one of them! With the right tools and practices you can maximize your potential and have a subprime department that is the envy of all of your competitors. So where do you start?
1. Evaluate yourself and your market – How many subprime customers are in your area and how many of them are shopping for a car each month? How many are coming into your store and how many are you selling – what’s your closing ratio? How many are coming into your competitor’s store and how many are they selling – what’s their closing ratio? Finally, how many of these prospects are visiting your store but buying elsewhere? Once you have this data, you’re ready to take the first step on a path to success.
2. Improve your closing ratio – Easier said than done, right? Wrong. Superior tools, lenders, inventory, training, and execution are the keys here. If you are using the right qualifying tool, have the right lenders, and have the correct inventory, you could double your closing ratios in 60 days on the prospects you already have coming in to your store.
3. Generate more prospects – Now that you’ve got the right tools, lenders, and inventory, and your closing ratios are much improved, you’re ready to generate more prospects. I’ll show you 5 specific proven and cost effective marketing tools to generate more subprime prospects for your dealership.
There is a lot of confusion regarding how to properly run a subprime department, and believe me when I tell you that I’ve seen a lot of it firsthand. Stop missing out on this lucrative market and get your subprime department to the top.
Attend my session at the 17th Digital Dealer Conference & Exposition on Tuesday, September 23rd from 3:00 to 3:50 P.M. and learn how to maximize your store’s opportunity in the subprime market.
About John Palmer
John Palmer formed Dealer Marketing Services, maker of the award-winning ProMax Unlimited software, in 1994 after over a decade managing car lots. ProMax has been at the forefront of the automotive software industry for 20 years and offers a full suite of products, including Desking and CRM/ILM modules, website hosting, compliance solutions, credit reporting, direct mail, and much more. In addition to being President and CEO of DMS, Mr. Palmer’s standing as an industry pioneer makes him a highly sought-after speaker on automotive software and subprime best practices. Mr. Palmer holds an Honors B.S. in Finance from the University of Illinois.