As margins get tighter and new car sales slow down, more dealerships are turning to the subprime space to pick up the slack. Whether your store has a fully fleshed out subprime strategy or is looking to build one, Auto Credit Express can help in this arena.
Dealerships Are Turning to Subprime Shoppers
Cox Automotive recently told Automotive News that more dealers are shifting their focus to subprime buyers. Rising new vehicle prices, slowing new car sales, higher interest rates, and a growing supply of late model used vehicles are among the many factors contributing to dealerships wanting to broaden their customer base.
We all know the challenges dealers face when it comes to dealing with customers with lower credit scores. The tighter restrictions on payment and car choice and the extra paperwork involved don't make things any easier. However, the greater the risk, the greater the reward.
In these changing times, having processes in place that are tailored to subprime customers can help you gain ground. Plus, you don't have to go it alone. Auto Credit Express wants to help your store sell more vehicles with our special finance car leads and other great products and services.
How to Enhance Your Dealership's Subprime Strategy
These three key components can help your store set a standardized strategy for how to handle subprime customers:
1. Starting Even before They Get in the Door – According to the 2019 Cox Automotive Car Buyer Journey study, 61 percent of the car shopping process is spent online. Most buyers are perfectly fine browsing the internet figuring out what they want instead of gearing up to visit a local dealership.
However, bad credit car buyers typically don't have this luxury. They can't get financed just anywhere, and need a dealer with a subprime plan in place to get approved. Well, what happens when these customers use the internet to research how to get a bad credit auto loan? They're going to find Auto Credit Express.
How Auto Credit Express Can Help: We have a vast web presence across many websites that allow these consumers to find us. Our digital reach seemingly knows no bounds thanks to our dedicated search engine optimization and pay per click advertising departments. This means proactive buyers seeking bad credit financing who are in the market for a vehicle are going to find us. It's what makes us a leader in special finance auto lead origination. In turn, we send these leads along to your store to get the deal done.
2. Identifying Credit Situations Early – It's important to know about each customer's credit situation as early on in the sales process as possible. Both Tony Dupaquier, the director of an F&I training center in Austin, Texas called The Academy, and Ken Hill, the managing director of 700Credit, told Automotive News that this can start with a soft credit pull that happens as early as possible.
Early identification of subprime customers makes it all the easier. Your F&I staff can begin the financing part of the process earlier and work on identifying the right lenders for each prospect, while your sales staff can refine the conversation around realistic monthly payment and car options.
How Auto Credit Express Can Help: We pre-screen these prospects for dealerships. We ask borrowers for an extensive amount of information when they fill out our auto loan request form. We collect contact information, income information, residence information, and more to pass on to your store. Customers who take the time to complete our comprehensive request form are motivated and serious buyers. It's just another way we provide dealers with a head start.
3. Having an F&I Staff Ready for Subprime Time – Your F&I team has to know your lenders inside and out. Use the guidelines they supply to gain a better understanding for the kind of deals they're looking for. Know which credit bureaus each lender uses in order to better determine the highest credit score for each customer and provide them with the best financing options possible.
Your F&I staff also needs to be familiar with the programs and stipulation requirements of each lender like the back of their hand. This sets you up to know which lenders are best suited to accept which subprime customers, and helps you submit deals that are airtight.
How Auto Credit Express Can Help: We match consumers to dealerships in their area based on the information they provide, but also – and more importantly – based on the information you supply. Our proprietary algorithms help identify leads that are right for your store and your lenders, so you're set up for success from the second they walk through the door. Additionally, our BDC call center preps them for the stips you need to get these deals done, so our leads are better prepared.
The Bottom Line
Auto Credit Express wants to help your dealership achieve success in the subprime space. We generate over 250,000 subprime applications every month, and these proactive consumers are looking for dealers who can help get them financed.
Our lead fulfillment programs can help your store reduce downtime by keeping a steady stream of potential buyers coming through your doors. Better yet, we use data and proprietary algorithms to match specific leads to your dealership, so you can rest assured you're set up for success from the jump.
In addition, our BDC call center and CRM tools can help your staff streamline the special finance sales process. It's all in the name of helping our dealer partners increase appointments, shows, sales, and gross profits.
What we like to say around here is let us do the heavy lifting for you, so you can put more focus on doing what you do best: selling cars. Call us to learn more at 888-535-2277, or you can complete our online contact form and we'll reach out to you!