An Ontario-based dealer group that set up a separate division to service customers in need of subprime financing, to help them buy used cars and restore their credit, continue to observe the benefits of such a move.
Plaza Auto Group, which has eight dealerships, started Get Auto Finance last July and so far the results have been positive. The group is using social media marketing to promote the service and the list of cars available on the company website. The inventory is both from Plaza Auto Group and a few other dealerships.
“It’s attacking the financing end of advertising where customers are looking to get pre-approved for cars and know what they can get and the rates they are approved for,” said Daniel Stein, Chief Executive Officer of Get Auto Finance, in an interview with Canadian auto dealer.
Rather than consumers going into a dealership and finding out what the rates will be, he said Get Auto Finance helps them begin the process before shopping for the car. The company has seven finance managers and no salespeople.
“We’ve reversed the process, where we deal with all of the financial-services aspects of the purchase at the beginning,” said Stein. “With our team of finance managers, they have the time to focus on that customer, because the financial aspect of the purchase is the biggest part of the purchase. The vehicle isn’t as much the biggest part anymore.”
Customers who do not qualify for financing at Plaza Auto Group are directed 24 hours later to Get Auto Finance. The company has a three-day return policy for customers if they are not satisfied with the vehicle they purchased.
Daniel’s father, Robert, who is the president of Plaza Auto Group, said it takes a dealership more time and focus to set up a division strictly focusing on subprime financing. Setting up a separate division with finance managers allows the deals to be completed quickly and efficiently, and to provide consumers with the best deal right from the beginning.
“As they make the payments for the first 18-24 months, we’ll recontact them and try to get them into a new car (at a lower rate),” said Robert Stein. “Our goal is to work them back to a prime customer and help them build their credit.”
