Resort personnel brought in additional seating for the first roundtable discussion on Wednesday during the Independents Conference orchestrated by the American Financial Services Association. Scores of executives came in out of the summer-like south Florida weather to hear a trio of alternative data providers discuss how this information can enhance underwriting, mitigate risk and perhaps most importantly, boost the company’s bottom line.
“The word is out. The more people that use it, the more they see the benefits,” said Pat Nanda, executive vice president of analytics at Microbilt Corp., one of three panelists from companies highlighted in this year’s SubPrime 125.
The experts acknowledged the term alternative data can be interpreted differently depending on the opinion of a finance company’s leadership. But by and large, alternative data includes information not typically included in credit reports offered by the three largest bureaus — Equifax, Experian and TransUnion. The data can include bank account history if in fact the loan applicant has one with an institution as well as payment history associated with utilities and other services.
Panel moderator Daniel Parry, chief executive officer of Praxis Finance, pointed out during his introduction of the session that cost and necessary technological infrastructure are among the main perceived hurdles behind why the use of alternative data already isn’t widespread. But Parry said it will be leveraged when Praxis ramps up its auto originations in the same way alternative data was utilized at his two previous stops at Exeter Finance and AmeriCredit.
Clarity Services chief analytics officer George Coutros emphasized to the AFSA conference gathering that finance company executives need to focus on the impact alternative data can have on their business.
“It’s the impact to the business that matters,” said Coutros, who spent a half dozen years at Equifax before joining Clarity Services. “It’s great if I can give you a different underwriting criteria that’s going to you make a different approve or decline decision.
“But wouldn’t it be greater if if we knew that the result of utilizing this data is that it would reduce losses by $10 million annually? I think that’s a more meaningful thing,” he continued.
“What we’re trying to do is not just stop by doing the analysis but then translate it into business results. That way, people making those decisions — should I buy this data or not — it’s a return-on-investment decision,” Coutros went on to say.
FactorTrust CEO Greg Rable echoed Coutros’ sentiment, stressing that using alternative data is “prudent” as a way to augment what finance companies already might gather from the three major credit bureaus. But Rable also pointed out the growing population who is underbanked, meaning their credit file will be thin if one even exists.
Rable went on to mention to conference attendees that the more alternative data is used, the more integrations there might be with loan origination software providers, further enhancing the foothold alternative data could have in the market.
Coutros made a point to SubPrime Auto Finance News that summarized what each panelist tried to convey.
“There are many lenders using this data today. Fortunately or unfortunately, alternative data means so many different things to people,” he said. “Alternative data in this case is leveraging data that’s not necessarily what the big three offer and we bring other data to the table.
“At the end of the data, previous credit behavior is the greatest predictor of future credit behavior,” Coutros concluded.
While acknowledging there are some murky points about the latest U.S. employment trends that could concern finance companies and their origination departments, Manheim chief economist Tom Webb explained how managers can focus on the most important elements that can keep the contract current and money flowing through receivables.
During his quarterly conference call this week, Webb first conceded there are three indicators of the labor market “that are, let’s say, less than robust.” That group included:
— Full employment still not getting back to its previous peak yet.
— Wage and salary growth being what Webb called “mediocre” at about 2 percent.
— A large number of people being employed part-time involuntarily.
“But the biggest benefit from the lenders is the fact that there is a lot more job stability out there,” Webb said. “If you look at initial jobless claims, the data adjusted for employment would suggest to you that if a person is employed full-time today, the odds of the person losing that job is less than it’s ever been.
“So that stability certainly provides the consumer with some confidence, but it also should provide the lender with some confidence because that’s one of the primary reasons for a default — a job loss,” he continued.
Among the unemployed, the U.S. Bureau of Labor Statistics (BLS) reported the number of new entrants decreased by 157,000 in March and is down by 342,000 so far this year.
“I think the stability numbers are looking very, very good,” Webb said.
Furthermore, BLS highlighted that there were 5.1 million job openings on the last business day of February. While that reading is little changed from January, this figure also was the highest level of job openings since January 2001.
“The numbers that came out in terms of job openings also are very strong,” Webb said.
Tax Season Update
Also during the call, Webb touched on this year’s tax season, which he described as “fairly muted this year.”
According to the IRS data available through March 27, federal refunds softened by 1.1 percent or $2.3 billion year-over-year.
“As we’ve seen for a couple of years, the seasonal impact of these monies is less than what it used to be, primarily because a lot of dealers are using the down-payment deferral programs and actually booking sales in the fourth quarter of the year as opposed to relying solely on the traditional tax season,” Webb said.
However, Webb isn’t ready to declare that these sales programs will diminish the impact of tax season entirely.
“I still think it will be extremely important just because it does represent a nice chunk of change to run a household that always in search of that down-payment money,” Webb said.
“And in that tax refund money, that’s just aggregate numbers for everybody. It’s important to note how it’s distributed,” he continued. “As you know, the used-vehicle market is primarily supported by that earned income tax credit. There proposals among bipartisans to increase that program in future years so those monies could grow as opposed to just any part of the tax refund base. That certainly would be supportive to a more pronounced shift in terms of vehicles sold at auction.”
With Experian Automotive pointing out that more than 80 percent of new vehicles sold last year had some type of financing, the Americans Well-informed on Automobile Retailing Economics (AWARE) Coalition reiterated its stance on how consumers should be as knowledgeable about the financing as they are the make, model and color of a vehicle.
To think about how the purchase will fit into a budget before the buyer signs the contract, the AWARE Coalition provides free resources to help consumers consider important financing basics such as down payment, interest rate, loan term, and trade-in allowance.
Other highlights of its offering include:
• Test your financial knowledge before going to the dealership with the Auto Financing Tune-Up, a 15-question quiz on vehicle financing basics.
• Prepare a budget by using AWARE’s Affordability Gauge to determine how much you can reasonably afford to spend each month on a vehicle payment. Remember to consider operating costs such as insurance, gas, parking and maintenance.
• Calculate your monthly vehicle payment with AWARE’s Auto-Finance Calculator.
• Become familiar with financing terms. AWARE’s online glossary defines many common vehicle finance phrases, such as APR or Annual Percentage Rate, collateral, down payment, and lien.
• Print the Wallet Card to use as a checklist of what to do before going to the dealership and while at the dealership.
“A vehicle is a major purchase that consumers must prepare for,” said AWARE spokeswoman Susie Irvine. “The first step is taking time to review your budget. This allows you to determine how much you can afford on a monthly payment, which will help you continue to feel good about your purchase when the payments are due.”
AWARE is a vehicle financing industry coalition to help consumers understand how auto financing works. The group provides potential buyers of new and used vehicles with the tools and resources they need to successfully navigate the auto financing process.
AWARE’s members include American Financial Services Association, National Automobile Dealers Association, National Association of Minority Automobile Dealers, American International Automobile Dealers Association, as well as members of these organizations.
Larry Dixon, senior manager of market intelligence at NADA Used Car Guide, dissected the possible storm cloud building that could rain on the auto finance parade that’s been marching nicely for more than four years now.
While outstanding auto receivables haven’t passed the $1 trillion threshold, Dixon referenced Federal Reserve data that shows student loan debt already reached $1.15 trillion in the fourth quarter last year, up 7 percent from a year earlier and a “whopping” 111 percent higher than Q4 of 2007 when the figure stood at $548 billion.
Dixon calculated that student loan debt exceeded auto debt by 21 percent at the end of last year, and “the ongoing increase in college loan balances could play a role in dictating demand for new and used autos in the future,” he added in a blog post.
While there appears to be some possible turbulence on the credit horizon because of student loans, Dixon maintained that current auto finance conditions are on “stable” ground.
“The below-prime share of originations is reasonable, delinquencies are still low and lenders and consumers are eager to do business with one another,” Dixon said.
Dixon acknowledged some market negatives, however, elaborating on a point Manheim chief economist Tom Webb mentioned, too.
“While rates remain near historic lows today, they will be on the rise ― albeit at a slow pace ― before too much longer,” Dixon said. “Higher rates along with faster depreciation and longer loan terms will negatively affect equity position.
“In addition, the rise in outstanding debt, buoyed in part by the growing number of vehicles financed, means lenders have more skin in the game than they did a few years ago,” Dixon continue. “This places more cash at risk should borrowers default.”
With all of these factors combining together, Dixon discussed what might happen next, asking whether consumers “saddled” with college debt be forced to buy more inexpensive new vehicles, or will they gravitate toward pre-owned ones?
“While we’ll probably have to wait and see how this one plays out, we can say with greater confidence that college debt, which is now second in size to mortgage debt, will have an impact on spending,” Dixon said.
“All in all, a favorable credit environment should continue to help fuel auto sales for some time to come; however, it would probably be wise for lenders to pay keen attention to collateral risk and portfolio performance today to mitigate future liability,” he continued.
“As time management guru Alan Lakein once said, ‘Planning is bringing the future into the present so that you can do something about it now,’” Dixon went on to say.
In what might not be surprising to top company executives, Fitch Ratings recently acknowledged that auto finance companies are likely to see loan asset quality weaken in 2015, with annualized net losses moving closer to their historical averages.
While prime auto loans continue to perform well, Fitch indicated subprime auto loan ABS annualized net losses are deteriorating at a “quicker pace”, recently crossing 8 percent before dropping to 7.26 percent as of the end of February.
Analysts pointed out the level is above the 10-year average of 6.24 percent, but below the past recession peaks of 9 percent to 13 percent.
“Fitch expects subprime auto loan performance to continue to soften modestly in 2015 due to heated competition-driving declines in subprime loan pricing, easing underwriting standards and moderation in used-car values,” analysts said.
“These factors contribute to Fitch's negative 2015 sector outlook for finance and leasing companies, but at this stage they are viewed as manageable relative to available capital levels and current auto lender ratings,” they continued. “For auto ABS, asset performance remains in line with loss expectations and Fitch’s outlooks are stable for prime and subprime auto loan ABS performance.”
While Fitch noted manufacturers have been disciplined on new-vehicle production and incentive spending, the firm emphasized that strong overall vehicle sales have kept the industry vulnerable to competitive pressures.
“We believe loan demand is likely to remain strong amid improving economic indicators in the U.S., despite an increase in consumer indebtedness,” analysts said.
Fitch sees not only an easing of overall credit terms (inclusive of loan term, pricing and down payments), but also a decline in average FICO scores.
“These factors have led to increases in subprime lending and a rise in subprime auto ABS issuance over the past year,” Fitch said.
“We see the eased standards being driven by smaller, less capitalized market participants, some backed by private equity capital,” analysts continued. “These lenders are competing to win market share and capture increased loan yields. We see loosened standards likely to affect the performance of the 2014 and 2015 loan vintages.”
Fitch went on to mention that against the backdrop of easing loan standards are the counterforces of an “improving” macro environment and currently “healthy” used-vehicle values, which help underpin the stable outlooks on auto ABS.
The firm recapped that U.S. auto loan and lease credit losses and delinquency rates increased in the second half of last year due to the seasonal effect of lower available consumer discretionary spending and, despite picking up in the fourth quarter, an overall decline in recovery values on used vehicles.
The average net loss rate for Fitch rated finance companies was 1.06 percent in the fourth quarter, up 5 basis from the end of 2013. Average 30-day delinquencies stood at 3.96 percent, an increase of 7 basis points since the fourth quarter of 2013.
Fitch explained the metrics are “reflecting continued easing of underwriting standards and higher nonprime lending. Both metrics still remain comfortably below pre-crisis levels.”
The top nine Fitch-rated auto finance companies, including captives, held about $450 billion of auto loans at year end. Of the nine, only General Motors Financial and Capital One have any “meaningful” subprime exposure in their loan portfolios, according to Fitch.
The industry continues to be on a path toward $1 trillion in outstanding receivables and climbing contracts terms as new data from J.D. Power and LMC Automotive has the combination of strong sales and high transaction prices positioning March to set a new record for consumer spending on new vehicles.
With spending poised to set a record at approximately $37.7 billion, analysts also determined that extended term financing (contract of 72 months or longer) is on pace to set a new record for any month. J.D. Power and LMC Automotive indicated contract terms of at least 72 months now are being utilized on more than 35 percent of retail new-model deliveries.
The retail seasonally adjusted annualized selling rate (SAAR) in March is expected to be 13.6 million units, 449,000 units stronger than in March of last year and the highest retail SAAR for the month since March 2002 (14.8 million).
“Inclement weather in February caused many consumers to delay their new-vehicle purchase until March," said John Humphrey, senior vice president of the global automotive practice at J.D. Power.
“Other key industry metrics continue to demonstrate the industry's underlying strength,” Humphrey continued. “The average new-vehicle transaction price so far in March is $30,530, the highest level ever for the month of March.”
Fleet volume in March is projected to hit 304,900 units — accounting for 20 percent of total sales — which is consistent with the year-to-date level. Fleet volume is expected to fall as the year progresses, according to Jeff Schuster, senior vice president of forecasting at LMC Automotive.
“Autos didn’t escape a weather-driven hit to the vigorous selling rate trend in February, but upward performance returns in March and is expected to continue throughout the year,” Schuster said. “The U.S. continues to be one of the brighter spots in the global vehicle sales picture in 2015 with stable volume growth.”
The latest Equifax analysis of the subprime auto finance industry triggered memories of when auto finance leader Lou Loquasto first began his professional career. Not only did Equifax call the subprime auto space “sound,” but analysts also found data that clearly backed up the claim, which they shared in a report titled, Subprime Auto Loans: A Second Chance at Economic Opportunity.
Equifax determined that over a three-year time period, those consumers with deep subprime credit scores that originated a subprime auto loan showed, in aggregate, a significant increase in their credit score.
In fact, analysts highlighted those consumers improved their credit score by a median of 52 points, which is a 62.5-percent improvement over the median score change of the group that did not take out a loan.
Even more telling, Equifax noticed those consumers who took out a subprime auto loan were four times more likely than those who did not to have improved their score to a level above 640, moving them out of the subprime segment.
The data trends prompted Loquasto to say, “I started my career sitting across the loan desk from thousands of nonprime families in need of a vehicle — each of them having a story about circumstances that resulted in their less than perfect credit score.
“It was rewarding to watch these customers diligently make the most of these second chances and see a high percentage graduate to a prime credit standing — empowering them to take full advantage of their newfound financial well-being,” he added.
With only a few short years separating today from the depths of the Great Recession, report authors — Equifax chief economist Amy Crews Cutts and deputy chief economist Dennis Carlson — acknowledged it is natural and prudent to be skeptical of the recent increase in subprime auto lending.
“Nevertheless, it is imperative that this curiosity be answered with data and not anecdotes, particularly given the benefit our analysis shows that subprime auto lending brings to those consumers who exited the recession with blemishes on their credit,” Crews Cutts and Carlson wrote. “And when the data available today is examined, it becomes clear that there is no definitive evidence that suggests an auto subprime loan bubble similar to the housing bubble is forming.
“This does not mean that we have eliminated all risk from consumer auto lending, but the new tools and technology available today, along with heightened awareness of what contributed to the housing bubble formation, enable lenders to better manage risk, and contribute to a very different subprime auto lending market today,” they continued.
Subprime auto finance naysayers likely will point to the latest data from the Federal Reserve of New York, which reported this week that auto loan delinquencies for the entire credit spectrum ticked up to 3.5 percent in the fourth quarter. That reading is up from 3.1 percent a year earlier.
“Without question, vigilance is the watchword,” Crews Cutts and Carlson wrote. “We must closely monitor the lending environment for indications of changing conditions. However, without access to quality and reputable subprime lending, borrowers will seek alternative, less dependable sources of credit — which could ultimately hurt them.
“In a world where there is a great deal of consternation regarding the stagnation of the middle class, subprime auto lending can provide help to consumers with less than perfect credit so they can improve their financial standing — and their future,” they continued.
The Equifax economists also rehashed points they made in a report released last summer, reiterating that there is not a subprime auto finance “bubble,” and comparing vehicle installment contracts to mortgages is like comparing, “apples and oranges.”
Crews Cutts and Carlson said, “The auto industry’s success wouldn’t be what it is today if it weren’t for the responsible, solid subprime loans made to the many Americans in need of a car to get to their jobs or take their children to school.
Lenders now have better tools, more data and enhanced technology available to them to make sounder and safer decisions,” they continued. “While we should all continue to remain vigilant, we can confidently say that subprime auto lending is currently performing well, it’s not growing as quickly as prime lending, and our data does not suggest that a bubble is forming.”
The National Automotive Finance Association is again enhancing its annual Non-Prime Auto Finance Survey; this time by collaborating with the American Financial Services Association.
The NAF Association and AFSA announced this week they will be working jointly to orchestrate the only survey specifically focused on the subprime auto financing market. For the past 18 years, the results have been used by companies for benchmarking, identifying trends and supporting and guiding policy decisions.
The survey is conducted by Benchmark Consulting International, which gathers and aggregates all the survey data confidentially. The data is gathered via a Web survey and incorporates Experian and Factor Trust data extracted from their traditional and alternative data credit reporting databases.
The two companies stratify and analyze the data according to their non-prime market segments specifically for the survey. This combination of information provided by AFSA and NAF Asscoation members along with Experian and Factor Trust data will provide a comprehensive overview of the industry.
Participating companies will be given a free copy of the final report.
“The NAF Association has always been motivated to get the highest level of non-prime auto finance company participation in the survey,” NAF Association executive director Jack Tracey told SubPrime Auto Finance News. “We reached out to AFSA with the thought that with the two organizations behind the campaign we could increase participation.
“Historically we’ve gotten around 25 companies submitting data, but we felt that if we could increase the number of companies submitting information that the survey results would more accurately reflect industry trends,” Tracey continued. “The NAF Association enjoys the opportunity to work with AFSA when the combination of our efforts benefit the auto financing industry.”
When contacted by SubPrime Auto Finance News, AFSA shared a similar sentiment.
“We believe the Non-Prime Auto Finance Survey is an excellent resource, and we hope that making it a joint effort between AFSA and NAF will prompt the participation of more auto finance companies,” AFSA president and chief executive officer Chris Stinebert said. “Increased participation will enhance the value of the survey and the aggregated data it provides the industry.”
For more information or how to participate, contact Tracey at (410) 865-5431 or [email protected].
AFSA Updates White Paper on Vehicle Franchise Ancillary Product Legislation
In other news, AFSA’s state government affairs committee issued a white paper earlier this week focusing on a trend in vehicle franchise legislation that affects the relationship between manufacturers, sources of vehicle finance and dealers relating to the sale of ancillary products. These products include vehicle service contracts, guaranteed asset protection (GAP) waivers and extended warranties.
AFSA highlighted the paper summarizes legislation proposed in New Jersey and Virginia and enacted in Florida, Mississippi, New York and Oklahoma during the last year. The bills include provisions prohibiting a manufacturer (or affiliated financial institution) from coercing or requiring a dealer to sell or sell exclusively their ancillary products or take action against a dealer for offering third-party products.
In some cases, AFSA noted that the provisions prohibit captive finance companies from offering exclusivity incentives to the dealer, offering finance terms to a consumer for an affiliated product that are not offered at the same time for a similar third-party product and/or requiring the dealer to disclose to the consumer when it is a third-party product.
AFSA members can download the white paper by going to this website.
As the company ramps up its prime financing program, General Motors Financial still is keeping an eye on its subprime business as a Wall Street analyst touched on recent inquiries from the U.S. Department of Justice and the Securities and Exchange Commission.
GM Financial rolled out its prime loan product to all GM dealers on Nov. 1, and with just two months to generate paper, the company reported that its prime bookings totaled $493 million for the year. The extra prime paper also elevated the average FICO score for Q4 originations as the company pegged the typical score at more than 40 points higher than what it saw in the same quarter a year earlier.
However, 31.1 percent of the subprime auto financing the parent automaker generated in the fourth quarter still went into the GM Financial portfolio. The company reported Q4 North American originations came in at $1.934 billion with $507 million of that figure being connected with used-vehicle financing at GM stores, an amount more than triple the figure posted in the year-ago quarter.
With subprime still a major part of the company business, BlackRock analyst Bryan Jacobi asked GM Financial leadership during its recent conference call about subprime securitizations. Jacobi’s question arrived in light of the federal agency inquiries and since, in his opinion, performances have been “quite good.”
In response, GM Financial chief financial officer Chris Choate said, “The performance of auto ABS, not only currently but back across the economic cycle, was strong and stable. Everybody got repaid interest and principal in a timely manner as really no defaults occurred.
“Auto ABS is maybe being evaluated by the different governmental agencies perhaps unfairly, in light of what happened with subprime mortgage securitizations as kind of the go by,” Choate continued.
Then Choate discussed why GM Financial didn’t have any of significance to share in connection with the DOJ or SEC matters that first were disclosed last summer.
“Really the reason we haven't updated or changed any of our disclosures related to those ongoing matters is really they’ve been fairly stagnant, if you will, relative to the interactiveness between us and those agencies. We certainly are cooperating. We provided lots of data,” he said.
“There have been certain direct interactions between the company and different agencies. But really, sort of the ball is in the agency’s court to move forward. We don’t really have a timeline for when or how that may happen,” Choate continued.
“Certainly any time you have agencies investigating your business, it's a serious matter and we take it seriously. And there is a certain element of concern. But again, the facts on the ground relative to how auto ABS performed, in our view, sort of mitigates a negative outcome,” he went on to say.
More Details About Portfolio Health
GM Financial’s North American delinquencies stayed relatively flat year-over-year during the fourth quarter. The company reported delinquencies up to 60 days came in at 7.4 percent of the portfolio, and total delinquencies stood at 9.9 percent as of Dec. 31. A year earlier, the readings were 7.5 percent and 10.0 percent, respectively.
GM Financial mentioned its annualized net quarterly credit losses remained almost flat year-over-year as well, coming in at 3.6 percent. The company’s recovery rate did soften a bit on a sequential and year-over-year basis, dipping to 53.1 percent.
“Consumer loan credit performance in North America, these metrics are very stable quarter-over-quarter, year-over-year,” GM Financial president and chief executive officer Dan Berce said. “I should say, just like subprime originations, we see a distinct seasonal trend in subprime credit, with the March and June quarters being the strongest and the December quarter typically being the weakest.
“We’ve seen a bit of softness in the market year-over-year, and we do expect to see continued moderation in used-car pricing throughout 2015, albeit from a historical standpoint still quite good,” Berce continued. “Going forward, our credit metrics will be impacted by our increasing mix of prime originations and so we should see a favorable impact to overall North America credit metrics, delinquencies and losses going forward.”
Enhancing Floor-Planning Business
GM Financial closed the year with 487 dealers with an active floor-planning account, up from 309 stores a year earlier. The increase pushed the company’s outstanding commercial lending portfolio past a new threshold — up to $3.2 billion
Berce insisted GM Financial’s goals for its commercial business haven’t changed, even though analysts believe the conditions are ripe for more activity there since the company now offers a full suite of financing products and GM is pushing its leasing activity to the captive.
“When we launched the business less than three years ago, we articulated that over a number of years we'd like to get to a 20-percent type share target. And we’re kind of halfway into reaching the target. We’re at around 10 percent now,” Berce said.
“If we keep going on the rate we're on of market share gains, I think we’re very comfortable with that,” he continued. “I think that one thing that could change that trajectory is the fact that for the first time now going into 2015, in the U.S. we have complete captive type capability.
“We didn’t have the prime product in our suite before, and we got a lot of feedback from dealers saying, ‘Well, we'd like to use you as our floorplan source, but we’d also like to use you for all the products.’ We didn't have all the products so we were a bit handicapped,” Berce added.
“So I think that'll help the momentum in 2015 and beyond, but we still don’t have outsized share targets for commercial. We’re really quite pleased with the trajectory we’re on,” he went on to say.
Top-Line Performance
GM Financial reported earnings of $59 million for the fourth quarter, down from $121 million for the same quarter a year earlier
The company’s earnings for the year came in at were $537 million, down from $566 million for 2013.
Officials mentioned earnings include $13 million and $42 million in pre-tax acquisition and integration expenses for the quarter and year ended Dec. 31, 2013, respectively.
Additionally, earnings for the fourth quarter of 2013 include $15 million in pre-tax charges associated with discontinuing the Chevrolet brand in Europe.
Officials from www.OnlineBKmanager.com made what they called “significant” improvements to their Web-based marketing software.
After 18 months of development and programming, OnlineBKmanager.com now has the ability to deliver bankruptcy leads to franchised dealers on a daily basis.
Upgrades also include improvements to the company’s exclusive multi-step lead cleansing process.
“We are proud to announce the release of our Daily BK Lead Program appropriately named Yesterday’s BKs Today,” OnlineBKmanager.com president Robert Davies said. “If an individual filed or discharged a bankruptcy yesterday, our dealers can be marketing to them today.
“This new technology is a game changer for auto dealers that play in the competitive bankruptcy market,” Davies continued.
The site indicated early testing has shown an increase in response rates and overall higher gross profits. Officials from www.OnlineBKmanager.com shared a testimonial from Ron, who is sales manager of a Big 3 dealership in Texas.
“My dealership is in a very competitive market,” Ron said. “Since we started receiving Daily BK Leads, we are getting higher response from our BK mailers, and we have higher gross profits as a result.
“The BK leads we get today are the people that filed or discharged yesterday,” Ron continued. “Being the first offer they receive from a dealer in the mailbox makes all the difference.”
And finance companies that specialize in subprime paper are encouraged by what www.OnlineBKmanager.com can deliver. John Harton is senior vice president with Consumer Portfolio Services.
“We have worked closely with OnlineBKmanager.com for the past few years, and our dealer partners definitely experience success with their service,” Harton said. “With the capability of marketing to bankruptcy leads less than 24 hours after filing or discharging, our dealer partners will undoubtedly increase their market share into what we call the ‘sweet spot’ of the subprime auto finance arena.
“Competition is increasing,” Harton added. “We anticipate these improvements will give CPS and our dealer partners a leg up on capturing more of these deals.”
Davies pointed out how important accurate bankruptcy information is to the entire process.
“Old and inaccurate leads can kill even the best thought out bankruptcy marketing campaign,” he said. “The No. 1 priority at OnlineBKmanager.com is to provide the freshest and cleanest bankruptcy leads in the industry. The success of our dealers depends on it.
Our exclusive multi-step cleansing process is now faster and more robust than ever before. No other bankruptcy lead provider can compete with the speed and accuracy we provide,” Davies went on to say.
For more details, contact OnlineBKmanager.com customer service at (888) 739-1468 to upgrade an existing account or learn more about these improvements.
