Subprime lenders are able to take on the high-risk borrowers that other lenders won’t. The risks can be high, but the market is massive – nonprime, subprime, and deep subprime borrowers make up just under 37.5 percent of the lending market, according to Experian’s State of the Automotive Finance Market report for Q2 2018. Think of it this way: if you’re not doing subprime, that’s over 37 percent of the market that your dealership is overlooking.
Subprime Consumers Make Up a Large Market Share
When it comes to helping people get the vehicles they need, it’s wise to have a range of lenders at your disposal. Especially in today’s tightening auto lending market, it pays to give your dealership the widest customer base possible. This means having a subprime lender or two signed up.
You should also consider subprime lenders to work with your customers if your dealership has a large used car department. According to Experian, used car loans make up almost 81 percent of the subprime market. Subprime car sales aren't limited to any certain type of dealership. Subprime lenders for independent car dealers are common due to the heavy focus on moving used inventory, but plenty of subprime car buyers see their way to franchise manufacturer-named dealerships as well.
If your store doesn’t cater to subprime consumers, now may be a good time to start. Subprime customers are some of the most loyal around – leading to repeat sales and sharing recommendations when they have a positive experience with your dealership and/or the lenders you work with. Car buyers tend to remember when good customer service helped get them back on their feet, or got them into a vehicle when they didn’t think it was possible.
Getting Subprime Consumers in Your Door
New to having subprime lenders, or thinking of taking hold of the opportunity for more sales, but not sure where your clientele will come from? That’s where working with Auto Credit Express can come in handy! Not only are we a leading resource for finding subprime lenders to work with dealerships, but we’re also a top producing lead generator.
We’ve been providing quality subprime leads to dealers like you for over 20 years. In fact, we recently won the Platinum Award for Special Finance Leads in Auto Dealer Today’s 2018 Dealer’s Choice Awards. See how Auto Credit Express can help your dealership take advantage of our services by calling 888-535-2277 for more information. Or, simply fill out our contact form online, and we’ll get back to you.