The Subprime Auto Report

New Social Network for Special Finance Managers and other Industry Pros

Before I get started on this post, I’d like to invite everyone to join  The Special Finance Network.  It’s a social network specific to our industry.  Industry specific social networks are a great way to connect with people that share the same interests. I think it will be a great way to share best practices and experiences with others.  If enough people get involved, I think it can work out well. It would mean a lot to me if you guys took a few minutes to set up a profile.

Join The Special Finance Network here. 

Ten Questions Special Finance Managers Should Ask Themselves

This list isn’t exhaustive, but it’s a good way to outline the topics that I’m going to cover in the next several posts.  These are questions that I feel any special finance manager should ask themselves. 

1. Who is my boss?  Who do I answer to?
2. When questionable deals are in play, how does your dealership decide where to send that deal (prime vs. subprime)?
3. Do I have a complete forecast put together for 2008?  Does it show which channels my profit will come from, how much sales volume I will have and what my total department profit will be?
4. Does my dealer principle feel my department is a priority?  Does he back up this feeling with a strong budget?
5. Do you know what your department ROI is (return on investment)?
6. Does my dealership website drive special finance leads to my department?  Is it optimized for search in your area?
7. Is your dealership spending money on online marketing in your area (Adwords, Yahoo Paid Search, MSN)?
8. Do you have a follow up system that keeps in touch with current customers, turndowns, previous customers and their references?
9. Do you understand how your inventory is stacked?  Do you always know the top ten cars with the largest book-to-cost difference?  Are you being sneaky about keeping those cars out of the spotlight so you can use them to make money?
10. How do your subprime lenders really feel about the business you’re sending them?  Is your portfolio and relationships strong enough to get overrides when you need them?