Special finance is not common terms for a common people, since only a certain people use it on their conversation. That’s why in introduction of finance we will give you some minor explanation about it. In introduction of finance, the terms of special finance is used to describe a sector in auto lending industry. This auto finance industry is very risky, that’s why some special condition is set to ensure that the risk can be covered by the return. For examples is a dealership.

Research in introduction of finance resulting that dealership which involved in special finance is divided into four categories:

• The bold dealership, special finance king is what they called by some people. They moving the entire advertising dollar to the sub-prime market. This dealership category serves in sub prime business and something similar to it.
• The enthusiastic dealership, this category is typically not ready to go be special finance since there aren’t any suitable marketing that they had. Plus, their business are limited, lots of traffic and their turn down on F&I primary are just make it worse.
• The necessary dealership, this category is already doing special finance according to the theory in introduction of finance but they just somehow didn’t realize it. Their manager is familiar with the sub prime business and knows how to make a deal approved. This category only concerned with the image of sub prime though they aren’t interested in being known in there.
• The unwilling dealership, this last dealer category doesn’t have any desire to go into the sub prime business. Why do this happening? Because the common reason is they are the leading company. Their dealership sells lots of vehicles every month. This was more thanks to the management philosophy than the theory in introduction of finance.