Starting March 8, 2010 we will begin testing a new concept in pre-approved subprime auto sales leads in the Metro Detroit area. Basically, the way the program works is that when consumers apply on our websites we will submit their application directly to lenders for an approval.
The approval will them be matched with dealers inventory utilizing LotPro® software for subprime auto sales. Consumers will then be issued a pre-approval certificate with a list of cars they can purchase from participating dealerships.
Based on data from a third party, over 32% of our special finance leads purchase a vehicle within 60 days of applying online; dealers that subscribe to our lead program, however, close anywhere from 3% to 15% of the leads. That means that other dealers 17% to 29% of the leads are purchasing cars from other dealers.
Were confident that this new process will increase the closure rates for dealers within our network.This new program is only available to dealers that subscribe to LotPro's Inventory Management Module.