Kelly’s Korner: Handling Sub-Prime Financing
Q: What are the best ways to tackle sub-prime financing?
Fresh Start Opportunities in Oregon
A: Dear Fresh Start:
Forewarned is always forearmed. Secondary financing is quickly becoming main-stream F&I practice. It is estimated that 50% of all Americans have credit problems that date from 1995 to the present. Lenders tell me that the statistics will be worse in 2000.
The numbers mean we will have to re-evaluate how we work car deals and in what order we do things. This turn of events makes the interview process the keystone of the transaction. Conducting a professional credit interview and presenting the customer with a dependable vehicle they can afford is paramount. Making the payments easy to handle with a parts and labor agreement and credit life accident & health protection will curtail future credit problems arising from unexpected mechanical repairs, death, or illness.
Preparing your CASE for the lenders in advance with documentation and written explanations. Remember the importance of a down payment. Fresh-start financing is best with cash equity.