Posts Tagged ‘sub prime’

When Will The Credit Freeze End?

October 8, 2008

Many Auto Dealers are hopeful that lenders will loosen up on their restrictions soon and begin making auto loans to their secondary (Sub-Prime) applicants once again. Perhaps they are counting on the $700 Billion Bail Out, or perhaps they have confidence in some of the recent acquisitions made by larger financial institutions.

The hopeful outlook is in stark contrast to the feedback I received from dealers last month after the announcement of HSBC and Triad’s decision to discontinue making loans through auto dealers and focus on other markets. Cindy Savio, spokesperson for HSBC said, “The auto finance business has been under strategic review for some time…Our exit from the business will allow HSBC Finance Corp. to focus on its core businesses – credit cards and mortgage lending.”

Jack Tracey, executive director of the National Automotive Finance Association said, “HSBC’s departure leaves a hole for the dealer community that seeks to finance customers with less-than-perfect credit…That leaves fewer options for dealers in an environment where other lenders who are left are tightening credit.” (source: Automotive News, Aug. 12, 2008)

Many dealers have felt the breeze created by that hole and have had to turn away consumers that they could have easily converted into sales the month before. I noticed a decrease in orders for my bankruptcy mailers which I see as just a ripple-effect of these sub-prime auto lenders pulling out of the auto lending market. Some of my clients have had to actually postpone scheduled mail drops for sub-prime direct mail orders simply because they felt that they would not be able to provide financing for consumers that responded to my aggressive credit offers.

But since HSBC serviced approximately 7,500 auto dealers and Triad serviced about 5,000, when it became public that they informed their dealers that they would no longer provide auto loans, other lenders seized the opportunity and contacted these dealers vowing to fill the sub-prime auto lending hole.

With obvious caution and skepticism, dealers took the wait and see approach and slowly began to submit applications that HSBC and Triad normally would have received. Once they began to see approvals and actually got funded with little or no hassle at all, their confidence began to grow and it is my opinion that this is where their hope is grounded.

I say this to rebut the mass media’s claim that the U.S. automotive industry is severe trouble. I’ll grant that there are many difficulties, but as we saw a major GM dealer close its doors last week we also saw it reopen the next day under new ownership. This is clearly the case of one man’s failure being another man’s opportunity.

Confidence in the U.S. automotive sales industry goes against the media’s scare tactics that are seeping with political overtones (which I’ll not get into here), so it’s no wonder that the general report is one that is “all-bad.” But I am still receiving orders for direct mail, and these orders are substantially larger in volume than they were a few months ago. I believe that I am a good barometer for market conditions because I only exist if auto dealers use my services, and guess what??? They are.

In closing I quote the prolific “Public Enemy” – “Don’t, don’t, don’t believe the hype!”

Automotive Direct Mail and Tax Returns

January 7, 2008

Tax Return Mailer by Hill Marketing Group Dealers, this is the time of the year to begin planning your marketing strategies to coincide with tax season.  We have the piece to draw the largest response and it’s perfectly worded so that you can maximize every aspect of every car deal.  We will not post samples on this blog for now.  If you would like more information, then simply send an email to info@hillmarketing.com and we’ll go from there. 

Attention sub-prime and secondary specialists: Are you ready to make some nasty car deals?  Are you ready to have them lining up outside of your office waiting to sign?  If you’re that kind of player, then at least check this out.  With several years of secondary credit mailer experience, we know what works and what doesn’t.  More importantly, we know what works and when, as well as what doesn’t and when.  That means that when you roll with HMG for sub prime automotive direct mail, you know that we’ll hook you up with the right piece at the right time.  Just check it out!

Gotta get back to work now, see you soon!

Currently I’m pushing this: HMG_Card_Mailers

TurnKey/Plug-n-Play Promotions

September 13, 2007

[rockyou id=83917192&w=426&h=320]

US Capital MasterCard Mailer, Granite Bay Acceptance, Hill Marketing Group.

MasterCard Mailer Sample

August 30, 2007

This is what your customer sees when they open the envelope.  Notice the US Capital MasterCard that is affixed to the top right corner.  This is a 30mm PVC Embossed card, which simply means that it is the same size, weight and thickness as a standard ATM or Bank Card.  To see a physical sample of the US Capital card, reach into your back pocket, pull out your ATM card or any standard credit card, then hold it up against your computer monitor.  Voilà!  There’s your sample 😉  (Imagine the US Capital logo)

Click Here To View The Sample of the US Capital MasterCard Mailer by Hill Marketing Group.

MasterCard Mailer: Snap-Pack

August 20, 2007

Here’s a quick description of our MasterCard Mailer by US Capital

This program is our top performer, hands down, bottom line.  We know why this works so well.  It’s because the US Capital MasterCard that is affixed to each mailer makes the package irresistible to open.  The higher the number of opened direct mailers, the higher the number of delivered units will be.  There’s no arguing that point. 

Below is a sample of one of the attractive packaging options that the offer comes in.  Ask yourself: would you open it?  I would.  And so will just about everyone that we send one to.   Add the snap-pack envelope by US Capital to your next Hill Marketing Group event.

 

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Click here to see what the packaging looks like

US Capital MasterCard enclosed in the snap-pack.