Leadpile’s Blog

We all know that there are great deals to be had in automotive market right now. Many car dealers are willing to cut their prices and haggle much more than in the past. So buying a new car as a steal should be simple, right? Car dealers may be willing to work with you on price, but when it comes to giving you a loan, not so much.
Unless you are very money savvy or have a great job, buying a car with cash is not always possible. This day in age it is very common for the majority of people to take out a car loan and finance their car. With the market how it is, getting a car loan can be easier said than done. Its not that lenders do not want to give out loans, they are just being much more picky on who they will approve. Also, interest rates are very high at the moment and your credit can make a difference on if you are approved and what interest rate you receive. According to U.S.News, when trying to finance or get a loan for your new car there are a few key facts you should know.
1. Basics of Car Loans – know that you will have to pay an interest rate which includes principal and interest.
2. Car Loan Term – This is the amount of time that you have agreed on to pay the lender back. The car is not yours until you pay back the WHOLE loan and interest.
3. Credit Score – As stated above, interest rate is normally based on an individuals credit score. Usually, the lower the credit score the higher the interest rate.
4. Apply Several Times – Consumers normally apply to several different companies to get their loans. This will give you a better chance to get a loan that suits your exact needs.
At the end of the day it is by no means impossible to get a auto finance loans. LeadPile is also here to help. We match up consumers and lenders who meet each others needs. Hopefully, this helped you realize that with the right knowledge and steps, buying a new car with great financing is not as far out of reach as you may think.

In a previous blog post, I discussed the FTC cracking down on those that were making “robocalls” to consumers. These were calls where a computerized message was placed to consumers about things such as car warranties. Well now it is official- The FTC (Fair Trade Commission) has enacted new rules forbidding the prerecorded commercial telemarketing calls to consumers without written permission from the consumer. These calls being eliminated has created a lot more buzz for internet generated leads, because now businesses need to get the most targeted people they can for their buck. A perfect example of this is the car warranty leads. The car warranty industry was very much involved in having these pre recorded calls placed to consumers to drum up business. Now that this is illegal, many advertisers are reaching out to companies like Leadpile for the targeted car warranty leads where the consumer physically opted in for information about a car warranty. Other verticals like debt and repairing your credit are services that were using robo type of calls and will be counting more on people like us to get these targeted consumers.
The ironic thing that just happened to me. I just received a robocall from a lender wanting to try and modify my home loan. Unfortunately, I tried to get a live person on the phone and was unsuccessful. I guess these new FTC rules didn’t scare everyone.

In the last few years many new ad networks or lead exchanges have surfaced. Many have survived and many have not. The need for networks and exchanges like Leadpile Lead Exchange came about because of the desire to connect multiple publishers with multiple advertisers to create simplicity for both parties. In addition to simplicity, is there any other reason that a publisher or advertiser should look at using a network versus one on on relationships?
1. As consumers get online more and more, publishers and advertisers need to figure out the best way to get the largest captive audience in once place. This is very difficult if you are trying to set up one on one relationships. Networks and exchanges allow this to be done without the hassle of developing one on one relationships.
2. There are cost benefits to the advertisers with working with network versus working directly with a publisher who usually has higher margins than the networks. This increase cost if passed on to the advertiser, whereas networks have higher volumes which allows there to be more of an ability to have lower margins.
3. The advertisers can capture all types of traffic sources in just a few networks versus trying to get a different publisher for each traffic source they are interested. For instance, to really diversify you want to utilize social networking, PPC and SEO, and SMS marketing.
4. Networks allow publishers an opportunity to sell their traffic/leads to various types of buyers/advertisers which allows them to diversify their ads to have everything funnel through one place, versus setting up one on one relationships with each advertiser.
5. Sophisticated networks/exchanges like Leadpile offer the technical capabilities for advertisers and publishers detailed reporting of the their campaigns. This creates simplicity for the publishers or advertiser with being able to have one place to track all their campaigns. This could be very large headache for someone to track each campaign they have one on one with.
Everyone in this industry has their own opinion on what is more effective: networks or one on relationships, however there just seems to be more benefits with working with an exchange or network versus trying to set up one on one relationships.

Sad news in the auto finance industry today….. Cash For Clunkers will end today. This program has fueled great success in our nation’s dealerships, however that is ending today. I am curious to see the reported end results of this short lived program and see if this is something that be continued on in the future. Ask the dealerships and they say that this brought people into their dealerships that would never have come. Ask consumers and they say this was great because they earned more money for their cars, than they ever would without the program. Ask the government and they say???????
This program we know has brought more traffic to the online auto finance industry, and Leadpile loves the idea of this. Can we all say “let’s keep Cash for Clunkers” going?

In an effort to boost some new car sales, GM has teamed up with the online shopping marketplace eBay. Previously, eBay was a place you could purchase a car, however purchasing a brand new car was not necessarily available. The NY Times is reporting, “The venture will involve about 225 dealerships in California at first, but G.M. hopes to expand it nationally as soon as September.” Hopefully, in combination with the Cash For Clunkers program and this sort of exposure, GM will see some positive things happening. Many reports are showing that the Cash For Clunkers program has allowed more auto finance traffic to start coming in to lead generators. If that is the case, hopefully we will see a high acceptance of this lead type by our buyers.

Just a few days I was referencing the new Cash For Clunkers campaign that the government had rolled out recently. However, it appears this seems to be too good to be true. The Associated Press is reporting today that the campaign is being haulted because there could be a lack of funds to support the popularity of this campaign. It does not seem anything is for sure regarding it being canceled, however I am sure we will all get some new news on this in the next couple of days. This campaign actually was lighting a fire in the auto finance industry like many I am sure hoped, but that didn’t last for long!

We all have been hearing a lot in the news about a new government bill (CARS) that allows us to turn in our low mileage “clunkers” for cash. The unfortunate thing is is that there are a lot of “unofficial” websites that have come out to try and mirror this program.
The official website where you can obtain more information about this program is at: http://www.cars.gov/.
The specifics about the program are:
Your vehicle must be less than 25 years old on the trade-in date
Only purchase or lease of new vehicles qualify
Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
You don’t need a voucher, dealers will apply a credit at purchase
Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.

So be aware of other websites or programs that are not the official government program.

It’s been a really bad year for many industries, however the auto finance industry has got to be one of the worst hit. GM has been hit really hard this year with a bankruptcy, and was forced to become a recipient of government bailout money. However, this second half of the year might prove to be a little happier for GM with the roll out of the new Camaro. What little boy (or girl) did not have aspirations of having one of these cars, but never could?
NPR news is reporting that there has been 15,000 of these beauties already sold and 13,000 on back order, but is carefully manufacturing these cars in a timely manner so there does not become a higher supply than demand. So maybe all this buzz will ignite some other auto sales so we can get this auto finance industry going in the right direction! Good luck GM!

Financial issues in the auto industry is not NEW news, however Chrysler looking at bankruptcy is news all of us are going to want to pay attention to.

It seems Chrysler headed back into court yesterday to try and sever partnerships it has with Chrysler dealerships nationwide. According to Time.com, “Auburn Hills, Mich.-based Chrysler maintains that it needs to reduce its dealer base by about 25 percent to a leaner network of about 2,400 dealers in order to emerge from Chapter 11 bankruptcy protection as a stronger company.” The unfortunate thing seems to be that these dealerships can’t understand this decision, and truly feel it is going to dramatically affect them. Many of the Chrysler dealerships also had not shown support for Chrysler to sell a majority of it’s assets to the Fiat Group, because this decision would also potentially close all their dealerships. Either way it sounds like a loose-loose situation for the dealerships, and all they are wanting to do is remain open to sell cars. Leadpile really is interested in how this all pans out, not only because we do lead generation in the auto finance industry, but as consumers we are potentially witnessing a mjor corporation file bankruptcy. This potential collapse of this many dealerships ultimately affects numerous industries, not just the auto industry. My question is, if all these dealerships shut down, where will all the inventory/cars be moved to? Would this mean potentially the “slashing” of prices on the Chrysler cars? Stay tuned!

Hitwise always comes out with it’s top searched terms for the month, and I know this sort of information can always help the Leadpile publishers with generating traffic. Getting as targeted traffic as you can will always help with the conversions of clicks to converted leads. For example, people selling items to generate income is a very important term consumers are searching for on the internet. Here are some examples of what consumers are searching for when trying to “sell” something.

Previous months Top 10 Search Terms by Category (April 2009) (%)
Automotive Manufacturers

Search Term/Search Volume

Honda 1.50
Toyota 1.37
Ford 1.37
Harley Davidson 1.04
Oreilly auto parts 0.98
Nissan 0.87
Dodge 0.69
Chevrolet 0.67
Kia 0.67
Honda motorcycles 0.66

If you are wanting to generate auto finance leads with Leadpile, these might be some terms to utilize when setting up your PPC campaign or trying to be indexed in the search engines (SEO). Keywords should be relevant to the products or services represented on your website being optimized. Keywords, should include single- and multiple-word phrases.

Net Communities and Chat

Search Term/Search Volume

Myspace 5.00
Facebook 4.28
Youtube 1.83
Myspace.com 1.61
Facebook login 1.23
Facebook.com 0.90
www.myspace.com 0.61
My space 0.56
You tube 0.40
Twitter 0.36

In many potential ways, social networking sites are a part of lead generation. Utilizing sites like Hitwise, helps with knowing more information about the consumer and where they are looking on the internet. Do your research, and know more about the consumer you are trying to attract to the website.

We all now what the auto makers have been struggling with. Most recently Chrysler filed bankruptcy, and now it appears GM might be following suit. It seems GM is trying to do a quick sale of its “healthy” assets.
The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims. GM has about $6 billion in secured debt, including secured revolving credit and bank debt.
The ownership structure of the company is still being worked out. In addition, the government would extend a credit line to the new company, and potentially forgive a large amount of the $15.4 billion in emergency loans that GM already received. The government has given GM until June 1 to restructure it’s operations to lower it’s debt and employee costs.
Leadpile Lead Exchange is very much concerned about the future of the auto industry. We hope this struggling industry sees the light at the end of the tunnel!

We all know payday loans don’t exactly have the best image, however there are a need for them in certain situations. I came across this article on personalmoneystore.com, discussing a very interesting type of loan. This “automobile down payment loan” is said to be a loan that no credit check is performed, and there is no collateral securing this loan. However, after reading more about this, I thought this reminded me of a payday loan, but with a different name.

We all know lending requirements have gotten a lot more strict, however consumers still need to pay close attention to the specifics of any money they are getting. Don’t get me wrong, this is not necessarily a bad thing that consumers should not look at. However, maybe the key to getting a more positive image on the payday loan industry is to put different “names” on the loans. Leadpile will keep an eye out for any other names we identify as a payday loan.