An automotive technology platform recently released its first-ever Independent Dealership Action Report. The underlying takeaway is that independent car dealers are facing some distinct problems because franchise dealerships are continually getting more involved in the used car market.
The Big Issue Facing Independent Dealers
California company DealerSocket recently issued its inaugural Independent Dealership Action Report. More than half of the independent dealers they surveyed cited two prevailing problems facing their business: Inventory acquisition and access to capital. These are difficult challenges to overcome because independent dealers have to compete against larger and better-funded franchise dealerships.
Two statistics they collected highlight the problems that independents face. Franchise dealerships are:
- Seeing a 617% higher yield in gross profits selling used cars on average
- Selling used cars an average 16.5 days faster than new vehicles
This is incentive for more and more franchise dealers to get involved in the used car domain, which was previously dominated by independents. With their bigger marketing budgets and referral bases, they have an undeniable advantage over those who aren't franchised.
Independent dealerships need somebody on their side to level the playing field.
How to Maximize Your Dealership's Profits
According to the report, independent dealers who leverage technology are the ones that are finding success in their competition (for both vehicles and customers) with their franchised rivals. Auto Credit Express can help your dealership do just that with our LotPro® Auto Dealer Software for subprime car sales.
Customers with bad credit are predominantly going to buy used vehicles. But contrary to popular belief, these subprime car buyers have better financial situations than stereotypes would have you believe. Plus, our application process is the most thorough in the industry, which ensures we only give you the candidates of the highest quality.
Our software service will get these profitable subprime sales leads into your dealership and streamline the processes of your special finance department. The dealers willing to make this commitment will become more productive and profitable because LotPro® is the most effective special finance software on the planet.
The Bottom Line
Hundreds of dealerships in the U.S. and Canada are thriving in the subprime domain with the help of Auto Credit Express. Your dealership could stand to increase its bottom line in a big way if you let us help. Just call 888-535-2277 or fill out our contact form to get in touch with us and one of our special finance experts will take it from there.