According to a recent report from Experian Automotive, both subprime and deep subprime loans gained market share in the second quarter of 2015. Is your dealership taking advantage of these market conditions?
Subprime Car Loan Growth
Not only are the sheer numbers of bad credit auto loans growing in the marketplace, but the actual percentage of loans to borrowers with spotty credit is also up slightly as well.
But despite the rise in higher-risk lending, the latest report from Experian Automotive also notes that "Thirty-day delinquencies for Q2 hit lowest level in the past five years."
Speaking specifically about the subprime market, the report states that "Subprime loans and deep-subprime loans grew as a share of the market but were balanced out by growth of the super-prime risk tier. The combined 20.02 percent share for subprime and deep subprime was up slightly from 19.92 percent in the second quarter of 2015. Super prime grew from 20.68 percent share in the second quarter of 2014 to 20.99 percent share in the second quarter of 2015."
According to Melinda Zabritski, Experian's senior director of automotive finance, "Overall, lenders are taking a balanced approach to their portfolios, with slight growth in subprime and deep subprime balanced by the uptick in loans to the super-prime risk tier." Zabritski continued, "There really is nothing alarming about the growth seen in subprime loans, provided consumers continue to make timely payments."
Is Your Dealership Taking Advantage of this Situation?
With over two decades of experience in the subprime sector, the experts here at Auto Credit Express can attest to the fact that when they're treated with respect, these subprime borrowers can become some of your most loyal customers. But it's also a fact that establishing a successful subprime department in your dealership can take time and patience, as well as the right marketing tools.
One of the most valuable tools we offer is a lead program that directs applicants to your dealership. These consumers have the proper income qualifications and are motivated to buy from car dealers like you. We know this because our lead generating process is the most thorough in the subprime segment.
So, What Are You Waiting For?
If you want to take advantage of the current boom in automotive subprime lending, and increase your store's monthly unit sales and gross profit per vehicle, what are you waiting for?
Call us at 888-535-2277 or fill out our contact form on our website and we'll have one of our knowledgeable customer representatives contact you. They'll walk you through our process and show you why we are the preferred lead provider for more than 1,000 dealerships with successful subprime departments in the United States and Canada.