UCN-Headline News -
[Cached Version]
Published on: 2/2/2004
Last Visited: 4/8/2007
Ken Anderson, president of ClickData.com, said his company provides Chapter 7 leads to dealers as just one of several services and marketing products the company offers."We are one of the largest aggregates of public records in the country," he said.Anderson said many bankruptcy filers buy a car within 30 days of the bankruptcy being discharged."Another reason why these leads are so good is that people are not only looking for cars, they need to build their credit," he said."That means they (know) they will have to pay a higher interest rate."Lenders are eager to finance them because of this, Anderson said.
...
"We see pretty consistent success with Chapter 7 leads," Anderson said.He said the trend is occurring among all types of used-car dealers, from independent buy-here, pay-here dealers to franchise dealers."In the past, buy-here, pay-here dealers have focused on this market exclusively," Anderson said.
...
"Most successful dealers are actively marketing to Chapter 7 filers (who have been discharged)," Anderson said.These dealers are seeing that there has been a decline in prime business and partner their special finance departments with lenders to target these bankruptcy leads.It's also important to adjust the inventory and educate staff to attack this market.Anderson said dealers should be aware of the limitations inherent in the Chapter 7 market."The number of filers is the issue," Anderson said."The problem with bankruptcies is , even though the leads are good, very consistent , you can't get more than there are."Dealers cannot expect this to be their sole source of leads or sales because there just are not enough of them to support that strategy, he noted."It's a given thing that you can only get so many golden eggs at a time," he said.This means that Chapter 7s may not be an important part of the marketing strategy for certain dealerships."For large dealerships trying to move a lot of inventory, it doesn't provide enough lift to make it worth your while," Anderson said.He also added that not every Chapter 7 lead will result in a sale.The issues which might effect a Chapter 7 customer's car deal might be the person's credit history, number of previous filings, resolution status of a previous filing and whether that previous bankruptcy was discharged or dismissed.Anderson said a bankruptcy might get dismissed if the judge feels the debtors are not overburdened and can pay off their debts.
8 online sources [ view sources ]
Profile is not claimed [ this is me ]
