If you are serious about getting into the subprime market, or if you just think your dealership could be doing more with it, the importance of transparency throughout the sales process cannot be stressed enough.
Subprime and Transparency
Dealing with bad credit car buyers is a delicate situation. They are often distrusting and discouraged because rejection has become all too familiar to them. Consistent honesty is the only way to gain the subprime segment's trust. That is why it's so important to be completely transparent from the start.
That means making sure your customer understands all costs and fees associated with the deal. Think about it this way: Do you think you stand a better chance of closing on a customer who's had a firm understanding of the details throughout the entire process, or on one who gets blindsided by multiple fees they didn't expect right at the end? In the long run, full transparency is the only way to go.
Also, don't assume certain options are off the table just because your customer is a member of the subprime segment. It's better to lay out every choice your dealership can offer and see what they have to say. In other words, don't judge a potential buyer based on only their credit score.
If you stay respectful, treat them like a regular customer, and remain upfront throughout the entire sales process, you'll be winning over subprime car buyers in no time.
The Subprime Segment is Growing
According to a report it released earlier this year, the Corporation for Enterprise Development found that 56% of American consumers have subprime credit scores. The recession left a great many people with nasty scars on their credit reports; marks that can remain for 7 to 10 years.
However, the job market is growing at the fastest rate in 15 years, so many of these bad credit consumers have steady paychecks. All they need is a dealer that is willing to work with them.
Finding Your Dealership Real Car Buyers
If you are worried that these subprime customers may not be as serious as others, you can put that fear to rest with Auto Credit Express. Our lead-generating process is among the most thorough in the subprime industry, evidenced by the fact that 32% of our leads buy a car within 60 days.
We'll generate the leads and get them to your dealership so you can focus on doing what you do best: Selling cars. Get on the fast track to maximizing your dealership's revenue potential by filling out our contact form or calling 888-535-2277 to get in touch with one of our Special Finance Experts.