The Industry's Leading Source For F&I, Sales And Technology


Financing the Hispanic Market

March 2007, F&I and Showroom - Feature

by Luis Gil and Bob Blackburn

In today’s special finance market, the Hispanic market is one of considerable size and importance to the automotive industry. Those who have dealt with this market know there are two distinct segments that need to be addressed separately. There are those with documentation and those without. Those in the country with permanent documentation (i.e. VISA, citizenship) do not face the same hurdles as those who migrated to the United States and obtained a tax identification number (TIN) — also known by its IRS Form number, the W-7. The IRS issues TIN numbers to individuals who cannot obtain a Social Security number from the federal government because of visa issues.

PriceWaterhouse, in its White Paper dated August 2005, estimated the Hispanic buying power at $686 billion in 2004, and predicted it to grow at a compounded annual rate of 8.2 percent. The Hispanic population is also the fastest-growing population and has the fastest income growth of any segment in the United States. According to Census Bureau data from 2005, the Hispanic population has grown 3.6 percent annually the previously 10 years, outpacing the growth of the general population by more than three to one. The current population of this consumer group stands at approximately 42.8 million, making this market too large to overlook.

True to Their Word

Many U.S. banks and financial institutions have become wise to the benefits of this market. The Hispanic customer offers a substantial source of revenue for lending institutions, as this group generally makes its payments on time. In many cases, this group will also pay off its accounts early — a fact born out of the high interest rates most Latin American countries impose on their consumer base. This has led to a cultural fear of interest rates. In many cases, Hispanic customers will bring their vehicle back to the dealership if they cannot continue making payments on their auto loans. Lenders like this because it eliminates the need for costly repossession specialists.

Your Comment

Please note that comments may be moderated. 
Leave this field empty:
Your Name:  
Your Email:  


So Here's the Deal

Ronald J. Reahard
Menus Don’t Work Miracles

By Ronald J. Reahard
A fancy new menu can help streamline processes and improve customer engagement, but it won’t replace the hard-won skill and compassion of a true F&I professional.

Avoiding the AAA Objection

By Ronald J. Reahard
Top trainer advises F&I pros to eliminate the ‘I have AAA’ objection by downplaying the very real — but relatively minor — roadside assistance benefit included with most service contracts.

(Video) Capture Missed VSC Sales

By Ronald J. Reahard

The Dealer Moved My Goal Posts

By Ronald J. Reahard

Done Deal

Gregory Arroyo
Car Buyers Need F&I

By Gregory Arroyo
Current market trends are playing right into the F&I product pitch, but they also reveal trouble ahead for the automotive retail industry at large.

Protecting F&I’s Future

By Gregory Arroyo
The editor responds to a reader’s question about whether F&I managers are being replaced by iPads and digital retailing tools.

Game Almost Over

By Gregory Arroyo

The Repair Is Covered

By Gregory Arroyo

Mad Marv

Marv Eleazer
'We Never Buy This Stuff'

By Marv Eleazer
Every F&I pro gets the occasional ‘F’ customer, but they’re a small part of your business and they’re not worth a minute of mental anguish.

Stop Painting Dealers With a Broad Brush

By Marv Eleazer
His Madness has a few choice words for media members who obsess over every act of dealer malfeasance while ignoring their charitable and volunteer efforts.

I Love F&I. How About You?

By Marv Eleazer

Is That Legal?

By Marv Eleazer

On the Point

Jim Ziegler
Bound to Fail

By Jim Ziegler
Da Man returns with a message to vehicle manufacturers jumping into the subscription waters: It ain’t gonna happen.

Sharpen Your Survival Skills

By Jim Ziegler
‘Da Man’ has a plan you can use to survive the collapse of the car business and remain profitable through the dealer apocalypse.

Sales Rock Stars Still Exist

By Jim Ziegler

The New Stooges

By Jim Ziegler