Set Your Sites On Credit
Dealerships are harnessing the power of the web. According to Autobytel, more than two-thirds of new car buyers now research and shop for their vehicles online. (Autobytel SmartBrief, October 26,2005.).
Credit education
In an effort to educate consumers about their use of credit as it relates to automobile purchases, the F&I coalition has launched www.autofinancing101.org. A consortium of national auto associations, lenders, and dealer groups sponsors the site.
Advertising and search engines will drive consumers to this well-designed site where they can receive a positive credit education that leaves the door open for dealership personnel to create value in their F&I products and services.
I urge your F&I personnel to navigate www.autofinancing101.org ahead of customers so they will be able to discuss the information it contains. F&I managers should be prepared to discuss the differences in collateral for a two party vs. third party contracts. There is more to making an informed buying decision than comparing APRs. Customers must also evaluate what is at risk in the event of a loan default.
By the way, how educational is your dealership Website? Is it GLB-friendly? The Graham-Leach-Bliley Act requires that we let our customers know what we do with their information and with whom we share it. Many dealer Websites have a button that says, “Click here to view our Privacy Policy”. Privacy policies should accompany the credit information.
Credit security
The debate over online applications and identity theft is in full throttle. Do you have an online credit application? Have you made sure the credit application page is on a secured (SSL) site? Do you inform your online inquirers that when they submit credit information your dealership may pull a credit bureau and list the bureaus by name? A simple statement that pops up before the submit button will do quite nicely.
How can a dealership be sure the person entering the information is really the person in question? It’s a good question, and the answer is unknow. As a precaution, make certain your server uses security software programs that track devices engaged in identity theft to prevent the devices from interacting with your Website.
Credit standing
It seems to me the more we educate our customers about credit, the better able they’ll be to make informed credit choices. And where to obtain credit is not the whole story. They also need to understand what drives credit scores and how credit inquiries and delinquent payments affect their scores.
Proactive and accessible consumer education about credit is long overdue. Our industry must fully embrace the effort if the current trend in poor credit is going to turn the corner. I have great faith in people and their ability to make good credit decisions when they have the right information. The road to better credit ratings will be a long haul. And we can go the distance.
Dealer Marketing Magazine, December ’05 Issue, p. 26