"Sub-Prime and the Internet" During 1995 and 1996 I wrote numerous articles and made presentations to conventions and 20 groups regarding the proper way to set up special finance departments. At that time I do not believe that many dealers thought the Internet would ever apply to the sub-prime customers. Even at this years NADA convention in San Francisco critics challenged my thoughts on this subject. Sub-prime and the Internet is happening and in many cases already producing good results. What's the secret to a successful Internet program for sub-prime customers? First of all we must remember that over 60% of the buying public over the age of 18 years old has some type of credit blemish or problem. Just because customers have credit problems does not mean they are ignorant to the changing world we live in. Today many sub-prime customers have access to the Internet at work and home through various new computer technologies such as low cost terminals or in many cases web TV. Customers with credit problems enjoy the privacy of being able to apply for loans without the embarrassment of walking into a car dealership. How this customer is handled will mean the difference between success and failure. I have listed a few tips for enhancing the effectiveness of your web site to attract credit-impaired customers. 1. Keep applications simple and user friendly. 2. Utilize separate web pages for credit challenged customers. This department should be separate and apart from the regular sales department. Use links on your web page that will move customers easily into application screens. 3. Hot link your web page to pre-qualifing services in order to eliminate customers that do not meet minimum guidelines. Based on the feedback from the pre-qualification leads should be distributed to either prime or sub-prime departments. 4. Respond to all applications immediately by contacting the customer who inquires or makes application on line. 5. Treat customers with respect and dignity! This is no different than any other sale. 6. Do not discuss price or terms prior to customers showing up for their appointment. 7. Never use Internet lead generating applications to "shotgun" customers to lenders. Remember it is just as easy to give false information via the Internet as it is on the telephone. Submit applications after the customer shows up and a credit interview has been completed! Pre-qualification services keep this from happening. Lenders know and appreciate these services. 8. Internet customers are normally very educated and computer savvy. Keep this in mind when choosing a person to work Internet sub-prime leads. 9. Research companies who understand sub-prime customers for your Internet links. Many lead-generating services believe that only good credit customers will respond to Internet advertising. This is far from the truth so it is imperative that your provider understands not only the net but also your sub-prime client. I am convinced that credit impaired customers will continue to increase because of the past availability of easy credit. The number of white-collar professionals with credit problems appears to be rising faster than the traditional blue-collar worker. With lenders tightening guidelines and looking for the higher quality customer it will be more important than ever to attract the Internet buyer. Dealers who prepare for this new type of credit impaired customer will continue to succeed in the sub-prime arena. The Internet is no more than another method of attracting customers and should be an interracial part of every dealerships advertising and sales plan.