Lately, there has been a great deal of uncertainty surrounding the auto industry, but now we’re starting to see the light at the end of the tunnel. At one point, it looked like used car valuations were plummeting, but they now appear to be recovering. Taking all this in, it could be time for car dealerships to take advantage of subprime auto sales leads if your store hasn't already.
Used Vehicle Prices Are Stabilizing
Used car prices are continuing to rise, exceeding the previously forecasted auction prices in light of the coronavirus. Recently, we had seen a major decrease in used-vehicle valuations, but it now appears prices are continuing to rise, which is great news for everyone.
As reported by J.D. Power, auction sales reached 90,000 units by the end of May, a volume just 6% below the pre-virus predictions.
With lessees who are scheduled to return their cars soon, including those whose lease extensions are ending, this also means an influx of low-mileage, off-lease, used vehicles filling your lot.
It's also likely that customers could be walking through your doors with trade-ins since their values have likely increased. On top of their trade-in, thanks to the cash assistance during the coronavirus shutdowns in many states, prospects may also have a large down payment in hand.
Influx of Income
There has been a storm brewing, but it's welcomed! With the government rolling out a stimulus check to many Americans, an extended tax season, a $600 unemployment bonus every week with the CARES Act, and some employers offering hazard pay, many buyers may now be prepared with a down payment and ready to upgrade their car.
Let’s not forget the cabin fever that has been building and affecting everyone. With storefronts and dealerships opening their doors and airing out showrooms, expect customers who are informed and ready to buy. They’ve likely been researching and saving up for a while, thanks to stay-at-home orders.
However, many people may find that their credit score isn’t as great as it once was, possibly due to a few missed or late payments thanks to widespread furloughs and layoffs. These little missteps could be pushing more and more customers into the subprime credit score range, making it more difficult for them to get qualified through their financial institution.
Additionally, prospects with lower credit are usually looking for used cars due to the lower sticker price. This means an influx of cash to subprime borrowers could mean cleaning out your used vehicle stock. If you have an overabundance of used stock cluttering your lots, subprime leads could be just what you need to move some product.
Drawing in Subprime Leads
If you’re ready to take advantage of leads that are loyal, motivated, and who may have an influx of extra cash, start talking with us at Auto Credit Express. We’re an award-winning lead generator, and we’ve been in the subprime sector for over 20 years.
Although foot traffic may be returning soon or already have returned, many customers are going to continue to be researching extensively online, and that’s how we send them to you.
We verify their information to ensure that they’re motivated to buy using our online services and our BDC call center. We reach out to them for you, so you can be the first name on their list – we know how important first call contact is! For something more subtle, we also have direct mail and bankruptcy marketing options.
Subprime leads are usually motivated to finance with dealers that are willing to give them a second chance, and now is an extraordinary circumstance. Subprime customers often turn into lifetime customers. To start the conversation and start generating subprime car sales leads, call us at 888-535-2277 or contact us online.