EP 9:03 From Lead to Loyalty: Harnessing Special Finance Strategies to Maximize Sales Profit and Customer Satisfaction

Millionaire Car Salesman Podcast

In this thought-provoking episode of the Millionaire Car Salesman podcast, Sean V. Bradley, President of Dealer Synergy, engages in a compelling conversation with Ken Hill from 700 Credit—a platform integral to the financing function at automotive dealerships. The talk delves deep into the nuances of car sales, credit reports, and the evolution of customer financing, especially within the subprime market.

Ken opens up about his extensive background in credit, setting the stage for a rich discussion on the importance of understanding a customer's financing situation early in the sales process. They dissect the traditional pitfalls of special finance, emphasizing empathy and addressing the stigmatization often associated with bad credit customers. The dialogue gravitates toward the game-changing potential of soft credit pulls, which do not affect a customer's credit score—paving the way for a smoother sales experience and establishing better-informed customer relationships.

Don’t miss this informative conversation with Ken Hill, where he shares his personal experience with credit challenges and emphasizes the need for empathy in the industry. Gain valuable insights into the benefits of soft credit pulls and how they can alleviate consumer concerns about impacting their credit score. Learn how to implement soft credit pull technology in your dealership and maximize its potential for better customer relationships and sales success.

Key Takeaways

• Soft credit pulls do not negatively impact the consumer's credit score and offer a competitive edge by ensuring accurate payment quotes and lender alignment.

• Special finance customers require empathetic handling and a focus on approval first, rather than vehicle selection, to ensure a smoother sales process.

• Dealerships should not shy away from adopting soft pull technology due to perceived costs, as it aids in effective conversation and reduces friction in the finance office.

• Utilization of AI in chat interfaces can significantly enhance the quantity and quality of pre-qualified leads received by a dealership.

• Including soft pull capabilities in the dealership's digital retailing experience can drastically improve both customer satisfaction and the efficiency of the sales process.

About Ken Hill

With nearly 30 years in the credit industry, Ken Hill brings a wealth of experience and expertise. He began his career when credit checks were required for purchasing cell phones and transitioned into the automotive sector about 20 years ago. This shift allowed him to specialize and develop products tailored to the unique needs of the automotive industry, particularly focusing on compliant solutions.

At 700Credit, Ken manages the business development, sales, and support teams. He is backed by an exceptional team with extensive automotive and industry experience, collectively exceeding 100 years. Ken's leadership and dedication to the industry continue to drive innovation and excellence at 700Credit. He remains passionate and excited about the future, continually striving to enhance and refine credit solutions in the automotive world.

About 700Credit

700Credit is the automotive industry’s leading provider of credit reports, compliance solutions, soft pull products, identity & fraud verification, synthetic fraud detection and driver’s license/facial recognition authentication platforms. 700Credit has over 21,000 dealers today in Automotive, RV, Power Sports and Marine. 700Credit is the integration leader with over 200 software partners with direct integrations for easier dealer access. For more information about 700Credit, visit www.700credit.com.

Resources

Dealer Synergy & Bradley On Demand: The automotive industry’s #1 training, tracking, testing, and certification platform and consulting & accountability firm.

The Millionaire Car Salesman Podcast: is the #1 resource for automotive sales professionals, managers, and owners. Also, join The Millionaire Car Salesman Facebook Group today!

Win the Game of Googleopoly: Unlocking the secret strategy of search engines.

The Millionaire Car Salesman Podcast is Proudly Sponsored By:

Dealer Synergy: The #1 Automotive Sales Training, Consulting, and Accountability Firm in the Automotive Industry! We have been building Internet Departments and BDCs for over two decades! It is this experience that has allowed us to develop the absolute best automotive Internet Sales, BDC, and CRM solutions for car dealerships. We have created the most effective training programs and processes. Phone scripts and rebuttals are our specialties, while CRM action plans, strategies, and templates are our expertise! Dealer Synergy will take both your tools and your people to the next level.

Bradley On Demand: Automotive Sales Industry’s #1 Interactive Training, Tracking, Testing and Certification Platform. With over 7,500 training modules, our platform has everything you and your dealership need to sell more cars, more often and more profitably!

Money Mind Mapp (M3): Visit MoneyMindMapp.com for help in revolutionizing your business to help you sell more cars by tracking, projecting, and forecasting your personal sales goals!

Navigating the Intricacies of Car Finance: Insights from Industry Experts

The automotive industry is often perceived as a constant battle between dealers and consumers over car financing. However, experts from the industry bring to light several critical practices and strategies that can benefit both parties. Through an insightful conversation with Ken Hill, the managing director of 700 Credit, we uncover the nuanced dynamics of car financing. This discussion touches upon the significance of credit reports, the advantage of soft credit pulls, and the transformative potential of digital retailing.

Key Takeaways

• Soft Credit Pulls: Dealers can leverage soft credit pull technology to accurately assess a buyer’s credit without impacting their score, enhancing customer experience and dealership efficiency.

• Special Finance Opportunities: Understanding and catering to customers with bad credit or unique financial situations can open up a significant market for dealers while providing valuable service to those customers.

• Digital Retail Revolution: The integration of soft pull technology in digital retailing platforms, like Toyota’s Smartpath, simplifies the car buying process, bringing transparency and convenience to consumers.

The Game-Changing Value of Soft Credit Pulls Understanding Soft vs. Hard Credit Pulls

In the automotive finance realm, soft credit pulls have emerged as a powerful tool that revolutionizes how dealers engage with potential buyers. Unlike hard credit pulls, which can negatively impact an individual’s credit score, soft pulls provide a detailed credit report without any adverse effects. "We have a soft pull tool that I can send you, a link you can complete, and basically we'll do a soft inquiry on your credit file. It doesn't impact your score." says Ken Hill, illustrating the convenience and safety for the customer.

Soft credit pulls allow sales representatives and potential customers to initiate meaningful conversations around financing options, knowing exactly where they stand credit-wise. This openness and clarity can significantly reduce the 'payment friction' commonly encountered in the latter stages of a vehicle purchase.

Integrating Soft Pulls Into the Sales Process

One of the most significant benefits of these soft pulls is their fluid integration into a dealership's sales process. For instance, incorporating a soft pull call-to-action on the dealer's website or digital retailing tools, such as Toyota's Smartpath, can greatly improve the accuracy of loan pre-qualification. Ken highlights, "…soft pulls should be utilized so that you can have better conversations with consumers and provide them more accurate payment quotes at the top of the funnel rather than waiting until the finance office."

By enabling soft pulls at strategic points, whether it's through a dealership website, digital retailing software, or even QR codes in the showroom, the dealer can foster transparency from the get-go and pave the way for smoother sales transactions.

The Untapped Potential of Special Finance Addressing the Stigma and Opportunity

An essential part of the transcript revolves around the misconception dealerships may have about customers with bad credit. Special finance opportunities, which cater to buyers with poor or no credit history, demand a nuanced approach that goes beyond the stigma. "Do you agree that it shouldn't just be perceived for people that are crackheads, that don't pay their bills and, like, the streets?" asks the interviewer, highlighting the need for empathy and deeper understanding.

Special finance is not only about giving a second chance to individuals facing financial hardship but also about tapping into a significant market segment. According to Hill's experience, dealerships focusing on special finance can be exceptionally successful. He shares a personal anecdote of financial struggle to illustrate that bad credit does not necessarily equate to irresponsibility but can be a result of unforeseen circumstances.

Best Practices for Special Finance

For dealerships aiming to capitalize on special finance, it's crucial to work closely with soft pull tools and align with the right lending programs based on the consumer's precise financial standing. As Ken elaborates, "…there's nothing worse than a sales experience and thinking you're going to pay one and coming away or not getting the car because you couldn't get that payment right." Therefore, integrating special finance strategies into the dealership's process can not only benefit the customer but can also lead to a higher rate of sales conversions and customer loyalty.

The Digital Retail Transformation Implementing Digital Retail with Soft Pulls

With technology advancing leaps and bounds, digital retailing is reshaping the automotive sales landscape. Smartpath by Toyota, for example, seamlessly incorporates soft pulls into the car-buying process. Ken discusses the importance of dealers properly implementing soft pulls within digital retail platforms: "…my opinion, there's some good digital retailing tools out there, but there's a lot that don't take advantage and force more of their consumers to initiate that soft pull within the tool."

A successful digital retailing strategy aligns consumer experience online and in-store, ensuring that the transition is smooth and continuity is maintained. This not only elevates customer satisfaction but also streamlines the sales process for the dealership.

The Future of Digital Retailing

The broader implications of integrating soft pull technology in digital retailing suggest a future where the need for in-person negotiation is significantly reduced. As AI technologies evolve, they could potentially use extensive credit-related data to create highly personalized financing options for customers. This tech-forward approach continues to cement digital retailing as a predominant force that could eventually allow most of the car purchasing decisions to be made from the comfort of a buyer's home.

The insights gleaned from Ken Hill's expertise confirm that there is an ongoing shift in automotive sales strategies, with a strong focus on customer-centric technologies and practices. This shift not only responds to the changing landscape of consumer expectations but also emphasizes the importance of transparency and trust in the traditionally opaque world of car financing. By harnessing soft credit pulls, empathizing with customers across the credit spectrum, and embracing the digital retail revolution, dealerships can armed themselves for a future where every sale begins with a nuanced understanding of the customer's needs and financial reality.